March 10, 2025
Lok Sabha MP Pratima Mondal’s speech on The Bills of Lading Bill, 2024
Sir, on behalf of All India Trinamool Congress, I rise to speak on the Bills of Lading Bill 2024. Sir, the Bill being brought by the Ministry of Ports, Shipping and Waterways contains several problematic provisions that could seriously harm the interest of shippers, traders, and stakeholders. Instead of improving maritime trade, the Bill increases Government control, reduces transparency, and creates scope for commercial fraud, all in the name of legislative modernization. One of the most alarming provisions of the Bill is found in Section 5 which gives the Central Government ultimate power to issue any direction it feels necessary to implement the Act. This means the entire authority over maritime shipping will now be controlled by the Central Government, leaving no space for State Governments, traders or industry stakeholders to influence policy-making in coastal regions. This provision clearly reflects an attempt of centralizing power in the hands of the Central Government. It also allows the Ministry of Ports, Shipping and Waterways to intervene in any shipping transaction without any valid justification, violating the principle of cooperative federalism, and reducing the autonomy of shipping business Another extremely dangerous provision is found in Section 4(1) which legalizes commercial fraud. According to this provision, even if the goods have not actually been shipped, a fake bill of lading can still be considered valid proof of shipment. Such a provision would also open doors for smuggling, black market trading and international money laundering. Small traders, especially exporters, would be highly vulnerable as they could easily be defrauded without any legal remedy. This provision also significantly damages India’s trade credibility as international companies may refuse to conduct business with India due to the increased risk of fraudulent transactions. Sir, the Government has repealed the Indian Bills of Lading Act 1856 without introducing any significant improvement to maritime trade, except for centralizing power under the Ministry of Ports, Shipping and Waterways. This is merely a ploy to introduce unchecked Government power over maritime commerce. Another extremely unfair provision appears in Section 2 of the Bill, which states that all legal and financial liability for any dispute or contract breach will automatically fall on the consignee, a person receiving the goods. Sir, this means that even if the shipping company or the seller is at fault, the consignee will still be held legally responsible This is extremely unjust, especially for small businesses, SMEs, and exporters, who may end up paying heavy penalties for mistakes they did not commit. This provision discourages smaller companies from engaging in maritime trade. It also completely ignores consumer protection as the Bill offers no legal remedies for consignees who receive faulty, incomplete, or fraudulent shipments. Sir, another major flaw of the Bill is that it does not regulate freight charges. The shipping lines, freight companies, and consignment agents often increase freight charges arbitrarily, especially for small businesses. The Bill does not set any regulations or price caps which can massively affect small and medium-scale enterprises as they will struggle to afford shipping costs. Instead of supporting small businesses, the Bill appears to protect large shipping corporations, allowing them to charge any price they want without Government regulation. This would further push small businesses out of maritime trade, weakening India’s domestic market. The Bill exhibits a clear pro-corporate bias, offering no protection to small traders or exporters. The Bill gives the Central Government complete power to control shipping lines, manage shipping documents, transfer ownership of goods, and interfere in private maritime contracts. It could also use this power to manipulate trade for its own political or economic interests or target specific businesses by obstructing their trade. This will significantly harm India’s Ease of Doing Business rankings, as businesses will have to operate under constant Government interference. Additionally, this paves the way for political favouritism, where only a few selected companies may receive special treatment from the Government, while others may face obstacles in their shipping operations. The Bill provides no role for State Governments in regulating maritime trade, despite the fact that they have a direct stake in port infrastructure, employment, and trade revenue. Excluding States and undermining local governance will severely impact local economies and port revenue generation. The vague and open-ended language of the Bill also increases the risk of corruption in maritime trade. The Bill creates three major loopholes. Firstly, Section 4 allows fake bills of lading to be legally accepted, even when no goods have been shipped, making commercial fraud easy. Secondly, Section 5 gives the Government unchecked power to interfere in shipping contracts without any valid reason. Thirdly, Section 2 shifts all legal and financial liability onto the consignee, even if the fault lies with the shipping company or the seller. These loopholes will encourage massive corruption, large-scale smuggling, and fraudulent trade practices. It will destroy accountability in maritime trade and make it easier for illegal activities like smuggling and money laundering to thrive. Sir, the Bill also creates confusion and uncertainty in international trade. Foreign investors and shipping companies may feel hesitant to do business with Indian traders because the Government now has the power to make sudden policy changes or interfere in trade contracts. This could damage India’s reputation in global trade and may even lead to trade restrictions, penalties, or sanctions against India for not following international shipping standards. The Bill also fails to modernize maritime trade by completely ignoring digitalization, making it harder for India to keep up with modern global shipping practices. Modern maritime trade also requires arbitration frameworks or mediation systems to resolve conflicts efficiently which are clearly absent here. The Bills of Lading Bill, 2024 is not a progressive legislation aimed at modernizing trade. Instead, it is a blatant power grab by the Central Government to centralize maritime power. Sir, I would like to mention here that the Haldia Dock Complex is connected to National Waterway-1. The port is connected with the riverine ports of Bangladesh and Indian State of Assam by National Waterway-97, Sundarbans Islands Waterways and Indo-Bangladesh Protocol Waterways. I would like to draw the attention of the hon. Minister for Ports, Shipping and Waterways. Every day more than 100 large cargo ships come from our neighbouring country Bangladesh to India for trading purpose by using the waterways of Sundarbans. These cargoes cross several rivers around the Sundarbans delta like Muriganga, Matla, Thakuraen, Vidyadhari, Piyali, etc. leading to soil erosion and thereby causing severe damage to the river embankments of entire Sundarbans area. Agricultural lands and ponds are getting polluted and becoming infertile, and mud houses of the residents of Sundarbans are being damaged by saline water which passes through the broken embankments. The most alarming thing is that many islands like Kumirmari, Satjelia, Chhotomollakhali, Amtoli, Mousuni, Ghoramora, etc. are becoming vulnerable, struggling to exist due to heavy waves that hit and submerge the islands during the movement of large cargoes. Moreover, the rising sea levels caused by climate change are also worsening the situation. To protect our Sundarbans and residents of the area, our hon. Chief Minister Mamata Bandopadhyay has sanctioned an amount of Rs.27 crore for construction and repair for the embankment of Sundarbans area. I would also like to request the Central Government and the hon. Minister, who is present here, that either the trade should be conducted by road transportation or the Ports, Shipping and Waterways Ministry should provide financial assistance for maintenance and construction of river embankments of the entire Sundarbans area. Thank you, Sir.
