All about Indian Council of World Affairs Act, 2001

The FAQs have been prepared by Roshni Bagai, a 4th-year, LLB student at City University of Hong Kong. She is currently interning with LatestLaws.com.

Introduction

The Indian Council of World Affairs (thereafter, “the Council”) was established in 1943. It was the premier foreign policy think tank of India and is, till date, considered one of the country’s most influential think tanks. It was originally registered under the Registration of Societies 1860 as a non-official, non-political and non-profit organisation. However, the enactment of the Indian World Council of Affairs Act 2001 (thereafter, “the Act”) has changed its status by declaring it as an institution of national importance.

1. What are the objectives of the Act?

In essence, the rationale behind the enactment of this Act was to declare the Council an institution of national importance and constitute it as a body corporate. This has enabled the Council to obtain more powers, including having perpetual succession and a common seal with power, while also allowing them to acquire, hold and dispose of any movable or immovable property, to contract, to sue and to be sued. However, these would be subject to the various provisions laid out in the Act.

Incorporating the Council also gave them the freedom to establish branches all around India, with the prior approval of the Central Government of India (thereafter, “Central Government”).

2. What are the objectives and functions of the Council?

The Council has a wide array of objectives they aim to achieve. They intend to promote the study of Indian and international affairs as well as India’s relations with other countries. This is to be done through various means including but not limited to study, research, discussion and lectures. This allows them to develop a body of informed opinions on international matters, which in turn, can be published in books, journals, periodicals, reviews, papers, or any other form of literature.

To effectively achieve the aforementioned primary objectives and promote new ideas, they undertake a plethora of plans and activities to promote, organise and implement numerous programmes. For instance, they aim to arrange seminars and conferences to study or discuss the Indian policy towards international affairs. They also enter into contracts with various organisations whose objectives are aligned with that of the Council’s. This allows them to further promote their objectives. Notably, as of 2015, the Council is now a member of the United Nations Academic Impact. This is an initiative created by the United Nations to align and unite institutions of higher education, scholarship as well as research, whilst promoting a new culture of intellectual social responsibility.

Additionally, the Council may also perform any other function prescribed in the rules implemented by the Central Government of India.

3. Does the enactment of this Act affect the Council’s assets and liabilities obtained under its non-profit status?

It does not affect the Council’s assets and liabilities in any manner. All assets and liabilities including but not limited to properties, debts, legal suits and proceedings, employees as well as obligations vested in the non-profit Council are simply transferred to the newly incorporated Council.

In fact, every person who had possession, custody or control over any property of the Council had to deliver it to the Director-General within ten days of its incorporation (i.e. within ten days from the enactment of this Act).

4. Who are the members of the Council? How are they appointed?

Upon the enactment of this Act, the Council consisted of the following members:

1. The Vice-President of India as the President of the Council;
2. The Prime Minister of India;
3. The speaker of the Lok Sabha;
4. The Leader of the House, Rajya Sabha;
5. The Leader of the Opposition, Lok Sabha; and
6. The Leader of the Opposition, Rajya Sabha
   However, the above arrangement was only in force until the Central Government appointed all the members that would comprise the Council. These appointments were only considered valid once the Central Government issued a notification in the Official Gazette.
   The members of the Council are currently as follows:
7. The Vice-President of India as the President of the Council;
8. Three Vice-Presidents;
   • Appointment: Nominated by the earlier Council (i.e. before any issuances in the Official Gazette by the Central Government) and thereafter by the new Council (i.e. after issuances in the Official Gazette by the Central Government)
9. The Director-General who serves as the Chief Executive Officer of the Council and acts as the Member-Secretary to the Council, its Governing Body and any other bodies or committees formed;
   • Appointment: Nominated by the earlier Council (i.e. before any issuances in the Official Gazette by the Central Government) and thereafter by the new Council (i.e. after issuances in the Official Gazette by the Central Government). Every appointment of the Director-General must be made by a panel of at least two people from the Ministry of External Affairs. These people will be recommended by the Government of India.
   • Note: They must at least have an equivalent rank of an Additional Secretary to the Government of India.
10. Five members of the Lok Sabha;
    • Appointment: Nominated by the Speaker of the Lok Sabha
11. Three members of the Rajya Sabha;
    • Appointment: Nominated by the Chairman of the Rajya Sabha
12. Seven eminent members in various fields including diplomacy, international law, international affairs, security and disarmament or Multilateral or United Nations affairs;
    • Appointment: Nominated by the earlier Council (i.e. before any issuances in the Official Gazette by the Central Government) and thereafter by the new Council (i.e. after issuances in the Official Gazette by the Central Government).
13. Seven members who are representatives of Universities or research institutions of higher learning. They should be experts in economic, history and other social sciences. Of these seven members, at least two will be Vice-Chancellors;
    • Appointed: Nominated by the earlier Council (i.e. before any issuances in the Official Gazette by the Central Government) and thereafter by the new Council (i.e. after issuances in the Official Gazette by the Central Government).
14. Seven members who are either media personalities or representatives from organisations including India International Centre, Indian Council of Social Science Research, Institute of Defence Studies and Analyses, Centre for Policy Research, Indian Council of Cultural Relations. They must be interested in the objectives and work of the Council;
    • Appointment: Nominated by the Governing Body of the Council
15. Five members who are representatives of Business or from the following organisations - Chambers of Commerce, Federation of Indian Chambers of Commerce and Industry, Confederation of Indian Industry, Associated Chambers of Commerce and Industry of India, Federation of Indian Export Organisations;
    • Appointment: Nominated by the Governing Body of the Council
16. Three members appointed from the Ministry of External Affairs and will either be the Foreign Secretary, Financial Advisor or Dean; and
17. Five members who represent the Ministries of the Central Government that deal with Education, Urban Development, Science and Technology, Culture, and Defence.  

5. How long is the tenure of each member of the Council?

Ideally, each member’s tenure is for three years upon the date of their nomination.

6. Can members be removed from the Council during their tenure? 

The power to remove members from the Council vests in the Central Government. Members may be removed if they:

1. come under any of the disqualification conditions (listed below);
2. refuse to act or becomes incapable of acting;
3. are absent from three consecutive meetings without obtaining a leave of absence;
4. have, in detriment to the public interest, abused their position, in the opinion of the Central Government.

However, no member can be removed without having been given a reasonable chance to be heard with regards to the matter at hand. Members are eligible for re-nomination, however this is inapplicable to disqualified members.

A member may also choose to resign from his office by writing to the Central Government. However, they must continue in their position until the resignation is accepted by the Central Government.

7. Under what circumstances can members of the Council be disqualified?

Members can be disqualified under the following circumstances:

1.  If the member has been convicted and sentenced to imprisonment for an offence which involves immorality in the opinion of the Central Government;
2. If the member is an undischarged insolvent; or
3. If the member is of unsound mind and is declared so by a competent court.

            If members are disqualified, they are not eligible for re-nomination.

8. What are the relevant processes or procedures in the event of vacancies among members of the Council?

In the event of a vacancy, a new member shall be nominated to fill the vacancy for the remainder of the replaced member’s term. Otherwise, the member shall continue in office until another member has been nominated to take their place. The relevant procedure will be prescribed by the Central Government’s rules.

9. What are the roles of the President, Vice-President and Director-General of the Council?

The President and Vice-President exercise their powers that are prescribed in the rules and work towards discharging the functions as well as objectives of the Act. The Vice-President may also have additional tasks delegated to them by the President. Additionally, both, the President and the Vice-President of the Council are responsible for authenticating any orders and decisions with their signatures.

The Director-General exercises their powers and discharges their functions in compliance with the prescribed regulations. They may also be required to complete tasks delegated by the Council, President, Governing Body or Chairperson. The Director-General may authenticate any other instruments (besides what is authenticated by the President and Vice-President) with their signature.

10. What is the Governing Body of the Council?

This body is constituted by the Council and serves as the executive committee of the Council. The Vice-President of India, upon notification in the Official Gazette by the Central Government, acts as the Chairperson of the Governing Body They will discharge their functions and exercise their powers in accordance with the Council’s regulations.

It must be noted that, subject to the control and restrictions enforced by the Central Government, this is only one of the many standing and ad hoc committees that the Council has the power to establish.

11. How is the Council remunerated for their work?

Members receive allowances and salary from the Council, subject to the prescribed rules. This will also be governed by conditions of service in respect of leave, pension gratuity, provident fund and other matters as prescribed by the regulations. In addition, the Central Government pays the Council financial sums every year as necessary in order for their functions and powers to be exercised efficiently.

12. Given the fact that the Council is now an incorporated body, what procedures must they adhere to in order to account for their money and activities? 

1. Maintenance of a Fund

The Council must maintain a fund to be used for administrative and other expenses of the Council, including those incurred in exercising their objectives and functions or for anything related. All funds collected through this Fund must either be deposited in banks or invested, with the approval of the Central Government. The fund constitutes of the following:

1. all money obtained from the Central Government;
2. all money obtained by the Council through grants, donations, gifts, bequests, benefactions or transfers; and
3. all money received by the Council in any other manner or from any other source.

2. Budget of the Council

Every year, within a stipulated time frame provided for in the rules, the Council must prepare a budget for the following financial year. This will indicate the estimated receipts and expected expenditure. It must then be forwarded to the Central Government.

3. Accounts and Audit

The Council is responsible for maintaining proper accounts and other relevant records. They must prepare an annual statement of accounts, including the balance-sheet, in accordance with the prescribed rules. They must also consult the Comptroller and Auditor-General of India and factor in any extra general guidance provided by the Central Government. 

Given that the accounts are audited by the Auditor-General of India, the Council is obligated to pay any expenditure incurred by him or anyone appointed by him. Once the accounts are audited by the Auditor-General, it shall be forwarded to the Central Government along with the audit report. This will then be given to each House of Parliament.

4. Annual Report

Each year, the Council must prepare an annual report, providing for a true and full account of its activities during the previous year. This shall be forwarded to the Central Government and in turn, will be passed to the House of Parliament.

13. Who is responsible for creating the rules and regulations for the Council? How do they come into effect?

The Central Government retains the power to make rules. These rules only come into force once the Central Government makes a notification in the Official Gazette.

The rules, without any prejudice, may provide for matters related to:

1. the manner of filling in vacancies among members;
2. the functions and powers to be exercised and discharged by the President and Vice-President;
3. the allowances and/or salaries to be paid to the members and other officers and employees of the Council;
4. the control and restrictions in relation to the constitution of standing and ad hoc committees;
5. the number of other officers and employees that may be appointed by the Council and the manner of such appointment;
6. such other functions to be performed by the Council;
7. the form in which the budget, annual statement of accounts (including the balance-sheet) shall be prepared by the Council and the number of copies required to be forwarded to the Central Government;
8. the form in which and time at which an annual statement of activities shall be submitted to the Central Government; and
9. any other matters which have to be prescribed by rules.
10. The Council may create regulations. These, without prejudice, may provide for the following matters:
11. summoning and holding of meetings, other than the first meeting of the Council;
12. time and place at which the meetings are to be held;
13. subject matters to be discussed at the meetings;
14. the powers, functions and relevant procedures to be exercised and discharged by the Governing Body and the Chairperson.
15. term of office and the manner of filling vacancies among members of the Governing Body;
16. allowances that need to be paid to the Chairperson, members of the Governing Body, standing and ad hoc committees;
17. the powers, functions to be exercised and discharged by the Director-General;
18. the conditions of service of all officers and employees of the Council; and
19. any other matters which have to be prescribed by regulations.

It must be noted that the first set of regulations made under this Act had to be made by the Governing Body, after which any regulations could be altered, rescinded or made by the Council as part of the exercise of their powers.

The rules and regulations can only have effect once it is approved by each House of Parliament. As soon as the rules or regulations are made, they must be sent to the House of Parliament while it is in session, for a total period of thirty days. This may either be a full session or may be broken into two or more sessions. The House of Parliament, collectively, may modify the rules and regulations sent to them in order for them to have effect.

14. Under what circumstances can proceedings held by the Council be invalidated?

Although the Act does not provide for any events that would trigger the invalidation of proceedings, it states that under certain circumstances, proceedings or acts cannot be invalidated merely due to the following reasons:

1. any vacancy in the Council;
2. any defect in the constitution of the Council;
3. any defect in the appointment of a person acting as a member of the Council; or
4. any irregularity in the Council’s procedure without any effect on the merits of the case.