On December 27, 2011, Lok Sabha passed the Whistleblowers’ Protection Bill which seeks to provide for setting up a regular mechanism to encourage persons to disclose information on corruption or wilful misuse of power by public servants, including ministers.

The Bill also seeks to provide “adequate protection to persons reporting corruption or wilful misuse of discretion that causes demonstrable loss to the government or commission of a criminal offence by a public servant”. While the measure sets out the procedure to inquire into the disclosures and provides adequate safeguards against victimisation of whistleblowers, it also seeks to provide punishment for false or frivolous complaints.

A major amendment cleared by the Union Cabinet is the inclusion of ministers, MPs, defence services, intelligence agencies, bank officials and PSUs under the ambit of the Bill. The Special Protection Group (SPG) has been kept out of the ambit of the Bill.

The definition of “disclosure” has also been amended to include wilful misuse of power or wilful misuse of discretion that leads to demonstrable loss to the government or demonstrable gain to the public servant or any third party.

The Union Cabinet has given its approval for the Pension Fund Regulatory and Development Authority Bill, which seeks to establish an authority that will develop, promote and regulate old-age income security. The Bill doesn’t mention the extent of foreign ownership to be allowed in Indian pension funds and in a central record-keeping agency. But in August 2011, the Finance Ministry had proposed to cap foreign investment in the pension sector at 26%, a suggestion accepted by a Parliamentary panel that was examining the Bill.

Allowing 26% foreign direct investment in pension management would help the government claim its economic liberalization is proceeding. The process, begun in 1991, has dramatically changed India by allowing formerly State-owned industries to flourish in private hands. But many restrictions remain in place in key sectors, including finance where restrictions on foreign ownership remain.