Question

Which of the following statements about the powers of the SFC are correct?

1. The Commission can summon and enforce the attendance of any person as a witness.

2. The Commission's powers are equivalent to those of a Criminal Court under the Code of Criminal Procedure, 1973.

3. The Commission has the authority to require any individual or entity to furnish information on relevant matters.

• A. 1 & 2
• B. 2 & 3
• C. 1 & 3
• D. All are correct

Answer 1

Answer:

C. 1 & 3

State Finance Commission (SFC) Powers

• Constitutional Basis: The State Finance Commission is a constitutional body established under Article 243-I and Article 243-Y of the Indian Constitution. It makes recommendations to the Governor regarding the distribution of financial resources between the state and its local governments.
• Quasi-Judicial Powers: SFCs are vested with quasi-judicial powers, similar to those of a civil court. This allows them to:
  1. Summon and enforce the attendance of any person as a witness.
  2. Require any individual or entity to produce and furnish any document or information on matters relevant to any inquiry or purpose.
• Distinction from Civil Courts: While SFCs possess powers akin to civil courts, they are not explicitly granted the powers of a Criminal Court under the Code of Criminal Procedure, 1973. This means their powers are primarily for inquiry and recommendation, not for conducting criminal trials.
• Purpose of Powers: These powers are crucial for the SFC to effectively gather data, assess the financial condition of the state and local bodies, and make informed recommendations for fiscal decentralization and resource allocation.
• Reporting: The SFC submits its report to the Governor, who then causes it to be laid before the State Legislature.
• Exam Focus: Understanding the scope of SFC's powers is important for competitive exams, particularly in distinguishing them from other bodies and recognizing their role in India's federal fiscal structure. Pay attention to the specific articles of the Constitution and the nature of their investigative powers.