‘Old is gold’ is a saying often used to highlight the value of old things in our life. But is it universally true? Probably not! Especially when it comes to laws, which decide the fate of millions of people in India. Countrymen, more specifically opposition of establishment, often accuse the government of stifling dissent using British laws.
A more recent example of this could be seen during the ongoing pandemic. When Covid-19 pandemic hit India’s door, policymakers rambled in registers to search for a statuary weapon for the purpose of controlling the chaos. They found Epidemic Disease Act,1897 which raised many eyebrows also. But, how many of us know that India’s philanthropy sector is still governed by an even older law? Yes, we are talking about the Societies Registration Act that dates back to 1860.
The same question was asked by Binoy Viswam in Rajya Sabha recently. The member of Rajya Sabha from Communist Party of India, asked, "Whether Government is aware that the present Society Registration Act is very old i.e. it is dated to 1860?"
In a response to this query, Minister of State for Finance and Corporate Affairs Anurag Singh Thakur reiterated, "The Societies Registration Act, 1860 (Act) was enacted in the pre-independence era and until 1947, the Act did not undergo any major changes."
Other such laws
When we look deeper, it emerges that not-for-profit entities in India continue to be regulated by pre-independence era statutes. It is not just about The Societies Registration Act, 1860 but other laws like Indian Trusts Act, 1882; and Indian Partnership Act, 1932 at the central level- were all formulated by Britishers.
Is change required?
Though, the minister in his response clarified that post-Independence, as a consequence of Article 372 of the Constitution, the Act remained in force, but legislative competence to enact law on ‘societies’ was passed on to the State Legislatures by virtue of Entry 32 of List II of Seventh Schedule ‘unincorporated literary, scientific, religious and other societies and associations’ to the Constitution of India. This provision has enabled States to repeal or take up amendments to the Act.
He informed that the Act has been amended in its application by almost all the States and some of the Union Territories.
The long title and the preamble were amended in its application to the National Capital Territory of Delhi and the State of Gujarat. Odisha, Punjab, Haryana, Uttar Pradesh, Gujarat and Maharashtra managed to insert provisions by the State Amendment Acts for the appointment of Registrar of Societies. Section 3 of the Act dealing with the registration of societies was amended comprehensively in Uttar Pradesh, Assam, Maharashtra, Goa and in Union territory of Daman and Diu. Penal provisions have been inserted in the Act in its application to the States of Gujarat, Maharashtra, Goa and Union territory of Daman and Diu. Some states replaced the entire Act with cognate legislation, e.g. in Madhya Pradesh, Manipur, Karnataka, Rajasthan, Tamil Nadu and West Bengal.
When the minister was asked about any consideration to change in Society Registration Act, 1860, he responded saying that "As the States are competent to make amendments in the respective Society Registration Act in its application for their States, at present there is no such proposal in the Ministry to undertake changes in Society Registration Act, 1860."
However, the Ministry of Corporate Affairs constituted an Expert Group in May 2011 to look into the legislative and regulatory architecture of the Societies Registration Act, 1860 and it had emphasised over the need for a new and comprehensive regulatory framework for registered societies.
