A 2-Judge bench of the Supreme Court suggested a comprehensive statutory audit of the Maharashtra Slum Areas Act and emphasized that reviewing and assessing the implementation of a statute is an integral part of Rule of Law.

• Directive came in response to several systemic issues in implementation of the Act including problematic processes of land identification as slum areas, provision of accommodation for displaced slum dwellers, etc.

Legislative Impact Assessment (LIA)

• It is a systematic approach to analyze the positive and negative effects of proposed and existing legislations.
• Some of the essential components of LIA include problem identification, exploring choices, comparative analysis, stakeholder consultations, socio economic analysis, impact assessment and reporting, etc.

Need for LIA in India

• Evidence-based policymaking: To ensure laws are based on sound evidence and analysis and optimize resource allocation.
• Policy predictability and coherence: To ensure that new laws align with existing legislations, policies and international commitments.
• Absence of sunset clauses: Sunset Clauses are rare in the Indian legislative system which often leads to under-reviewed, outdated, overburdened, and redundant regulations.

Challenges for LIA in India

Absence of institutionalized framework, sub-optimal interdepartmental coordination, inadequate stakeholder engagement, etc.