India should set up a centralised oversight mechanism to improve the functioning of quasi-judicial tribunals and unlock huge funds tied up in unresolved disputes, the Confederation of Indian Industry said.
CII said in a statement on Sunday that the efficiency of tribunals adjudicating on important areas such as labour, environment, and taxation is critical for improving the overall ease of doing business.
As of the end of December 2024, ₹6.7 trillion was pending resolution at the Income Tax Appellate Tribunal (ITAT) alone, accounting for nearly 57% of all the disputed direct tax amount in the country, the industry body said, pitching for a centralised oversight mechanism for tribunals.
Such a mechanism would ensure uniformity, policy coherence, and improvement in tribunals’ overall performance, the industry body said.
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CII suggested that to put this in place, suitable amendments may be introduced in the Tribunals Reforms Act, 2021, defining its mandate, structure, scope, and responsibilities. This central body could undertake functions like performance monitoring, data tracking, coordination with the search-cum-selection committees, capacity building, and independent grievance redressal.
The industry body also said administrative control of tribunals is fragmented across various ministries and departments, leading to a lack of standardisation and functional inconsistencies.
Key concern
A key concern for tribunals is the absence of real-time performance statistics, which limits the scope for undertaking evidence-based reforms. In contrast, such information is readily available for the entire court system of the country on the ‘National Judicial Data Grid’, maintained by the e-committee of the Supreme Court, CII said.
Tribunals are quasi-judicial bodies designed to adjudicate disputes in specific disciplines, such as taxation, company law, environmental regulation, and public service matters. Today, over 16 central tribunals operate under different ministries across key sectors.
While the government has sought to address challenges through the Tribunal Reforms Act, 2021, constraints such as persistent vacancies, delayed appointments, inadequate infrastructure, lack of performance monitoring, and ineffective grievance redressal mechanisms continue to undermine tribunals’ effectiveness and efficiency, CII said.
Way forward
Setting up a centralised oversight institution for tribunals would be a transformative step towards making India’s justice delivery system more responsive, efficient, and future-ready, directly contributing to boosting regulatory credibility, improving ease of doing business and enhancing investors’ confidence, CII stated.
