Question

The State Finance Commission, in the performance of its functions, has the powers of a Civil Court for which of the following matters?

1. Summoning and enforcing the attendance of witnesses.

2. Imposing penalties for financial mismanagement.

3. Requiring the production of any document.

4. Requisitioning any public record from any office.

Select the correct answer using the code given below:

• A. 1 and 3 only
• B. 1, 3 and 4 only
• C. 2 and 4 only
• D. 1, 2, 3 and 4

Answer 1

Answer:

B. 1, 3 and 4 only

State Finance Commission:

• The State Finance Commission (SFC) is a constitutional body established under Article 243-I and 243-Y of the Indian Constitution.

• Its primary role is to review the financial position of Panchayats and Municipalities and recommend measures to improve their financial health.

• In the performance of its functions, the SFC is vested with certain powers analogous to a Civil Court, as specified under various state acts governing Panchayats and Municipalities.

Powers Similar to a Civil Court:

• Summoning and enforcing the attendance of witnesses: The SFC has the authority to compel individuals to appear before it and give testimony. This is crucial for gathering information and evidence.

• Requiring the production of any document: The Commission can demand the submission of any relevant documents, records, or accounts that are necessary for its inquiry. This helps in verifying financial data and understanding the financial status of local bodies.

• Requisitioning any public record from any office: SFC can request and obtain public records from any government office. This ensures access to official data for a comprehensive review.

Matters Not Covered:

• Imposing penalties for financial mismanagement: While the SFC can identify instances of financial mismanagement and make recommendations, it does not have the direct power to impose penalties. This power typically rests with other administrative or judicial authorities.

Significance for Competitive Exams:

• Understanding the constitutional basis (Articles 243-I and 243-Y) of the SFC is important.

• Knowledge of the SFC's quasi-judicial powers, particularly those akin to a Civil Court, is often tested.

• Distinguishing between the SFC's powers (recommendatory and investigative) and the powers of other bodies (penal, judicial) is a key aspect.