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Congress leader and Lok Sabha MP K.C. Venugopal heads the Public Accounts Committee (PAC).
The PAC will hold a performance review of regulatory bodies established by Acts of Parliament, including prominent entities such as the Securities and Exchange Board of India (SEBI).
The PAC will also audit various fees, tariffs, and user charges imposed on public infrastructure, including airports.
Seven Indian airports, managed by the Adani Group, will be scrutinized as part of this review.
PAC's Primary Responsibility:
The PAC is responsible for auditing government revenue and expenditure.
According to a Lok Sabha bulletin, the PAC has chosen 160 subjects to deliberate on during its tenure.
These subjects were decided during the PAC’s first meeting held on August 29.
The 22-member committee includes 12 members from the BJP-led NDA and 8 Opposition MPs, with 4 from Congress.
Suo Motu Investigations by PAC:
The PAC has selected five issues for suo motu investigations, two of which are:
Performance review of regulatory bodies established by Act of Parliament.
Levy and regulation of fees, tariffs, user charges on public infrastructure.
Regulatory Bodies Under Review:
Under the review, bodies like SEBI and the Telecom Regulatory Authority of India (TRAI) may be examined.
SEBI has been under scrutiny by Congress and opposition parties, particularly following allegations by Hindenburg Research in August regarding stock manipulation and offshore entities connected to the Adani Group.
In March 2023, the Supreme Court directed SEBI to investigate these claims within two months, but new allegations surfaced in August against SEBI’s chairperson.
Focus on Public Infrastructure and Utilities:
The PAC will also examine the levy and regulation of charges on public infrastructure like highways, railway stations, and airports.
Historical Significance of the PAC:
Established in 1921: The PAC has its origins in the Financial Committee of 1921, formed after the Montagu-Chelmsford Reforms.
Uniqueness of PAC:
It was the first committee formed to oversee and counter the government of the day.
It has a broader scope compared to other Parliamentary Standing Committees.
The PAC is empowered to call any individual in connection to its investigations.
The PAC’s recommendations are binding on the government, unlike many other committees.
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