A tax to clear India’s pending court cases?

Police indictment no ground for denying anticipatory bailYou may have to pay from your pocket to help the government clear the three crore cases pending in the country’s courts.

The Law Ministry proposes to create a special purpose vehicle (SPV) to dispose of all pending cases by 2012-end. Its blueprint for judicial reforms, approved by Cabinet “in principle”, aims at bringing down the period for which cases are pending in courts from 15 years to three.

“The SPV will be formed as a society fully funded by the Centre. It may also, in future, be funded from an appropriate tax, say a legal reforms cess applicable to all citizens, on the lines of the education cess,” says the blueprint document.

The education cess is a two per cent surcharge on total payable tax. The UPA government had announced its imposition soon after taking charge in 2004. An additional one per cent secondary/higher education cess was imposed in 2007.

“This proposal will be discussed threadbare before a final decision is taken. There is no need for alarm. Any final decision on tax imposition is of the Finance Ministry,” said a senior ministry official, who did not want to be named.

The Law Ministry plans to involve the private sector. “The SPV will form partnerships and alliances with the private sector wherever required. It will also attempt to outsource activities but will retain control of the strategy policy,” says the 34-page document.

The SPV, to be governed by a board of governors, will have a chief executive to monitor day-to-day operations. The ministry proposes to give it wide ranging powers.

“The SPV will be empowered to seek the involvement of the Supreme Court, all high courts and subordinate courts in charting out a detailed action plan,” says the blueprint.

The ministry wants the SPV to study existing laws and “suggest modifications, if necessary,” to implement its vision for reforms.