ii. Statutory Vs Non-Statutory
- Organizations and bodies that are defined by a formal law or a statute are referred to as statutory.
- Statutory entities have the authority to make laws and make decisions on behalf of the state or country. SEBI, or the Securities and Exchange Board of India, is an example of a statutory authority.
- These are government-created bodies that are shaped by an Act of Parliament and tasked with analysing data and making decisions in a certain area of activity.
- The term “non-statutory” is essentially a synonym for “common law.”
- As a result, such bodies are created solely by executive resolution or action, implying that they are created solely by government activity.
- An Executive order normally gives them the authority. For example, the NITI Aayog and the National Development Council (NDC)