1.1. Background

In the post liberalization era, the state plays less direct role in the economic activities. But it does not mean withdrawal of the state. In India, liberalization meant that the state allowed much more active participation of private players in economic activities while state minimizing regulation. Also the State Owned Enterprises (SOEs) continue to play dominant role in many sectors of the economy.

The Constitution empowers the Union and State Legislatures in India to make laws on various subjects and take up regulatory functions. The state can impose reasonable restrictions on the exercise of various rights conferred by Article 19 in the interest of public order, sovereignty and integrity of India. Consequently, there is a plethora of laws and rules, which seek to regulate the activities of individuals and groups. The Constitution as well as the laws enacted by Parliament have established the institutions and mechanisms to enforce these laws and rules. Article 53(1) of the Constitution regulates the exercise of the executive powers of the Union. Further, Article 53(3) authorizes the Parliament to confer by law such functions to ‘authorities’.