Lok Sabha passes Companies Bill

The Lower House of Indian Parliament, on Tuesday passed the Companies Bill, with the government saying the aim is to protect interest of employees and small investors while encouraging firms to undertake social welfare voluntarily instead of imposing that through "inspector raj".

Replying to a debate before the bill was passed by a voice vote, Corporate Affairs Minister Sachin Pilot said through this new legislation, the government intends to make India an attractive and safe investment destination.

He said special courts would be set up for speedy trials, as an assurance to investors that cases will not linger on.

Underlining the need for such a law, Pilot said India will be become the first country to mandate corporate social responsibility (CSR) through a statutary provision.

He also said that while framing rules for the legislation, the government will take in confidence MPs and other stakeholders, like NGOs.

"It's an evolving idea...We will make compliance easy," he said.

Pilot said that companies should voluntarily engage in CSR and not fear that the legislation amounts to return of "inspector raj".