Royal Commission on Labour in India: Report(1929)||
Government should also have the power, through its inspectors, of instituting prosecutions of persons defaulting against any of the regulations, whether issued by the Board or by Government. Where an inspector considered a prosecution desirable, he would submit the proposal in the first instance to the Board and not to Government, and the power of Government should only be invoked after the Board had refused to prosecute and where it was clear that there were no sufficient grounds for such refusal. These reserve powers will enable Government, where necessary, to intervene without resort to the ultimate power (which it should also possess) of superseding a Board altogether. The aim of Government should be to assist and encourage the Boards in every way possible, and to limit the use of its reserve powers to cases where a Board had definitely failed. We think that in practice Government will not find it necessary to interfere, but the powers we have suggested should be sufficient to ensure that unduly tax standards are not adopted by particular Boards.
Government should also possess some financial control. For example, all loans should require the previous sanction of Government, and its approval should also be obtained for any scheme for which a loan is required. Some more general control will probably be advisable to ensure that long term commitments are not undertaken without expert financial scrutiny. The accounts of the Board should also be subject to official audit.