Inclusion of HUF under terror law sets off a row

Mar 19, 2012 - Namrata Biji Ahuja |

New Delhi

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BJP and Trinamul MPs have objected to a move by the Union home ministry to include “Hindu undivided family” (known by the acronym HUF, usually in tax matters) in amendments to the Unlawful Activities Prevention Act (UAPA).

The term ‘Hindu undivided family’ is a recognized entity under the income-tax laws; now it appears a person can be punished under UAPA in certain eventualities.

Members of the parliamentary standing committee on home are asking the government to explain why it is linking “HUF” with terrorist acts in the UAPA Amendment Bill 2011.

Some CPI members of the committee have also raised the issue. Some MPs have suggested it could have communal overtones. The bill amends the original law to include the definition of a person as “an individual, a Hindu undivided family, a company, firm, association of persons or a body of individuals, every artificial juridical person or agency”, and enlarges punishment for those who raise or provide funds knowing these will be used to commit a terrorist act.

Defending the move, the home ministry said the phrase was already incorporated in the I-T Act and the Prevention of Money Laundering Act. The matter will come up before the standing committee again on Monday.

The MHA wants the bill passed by March 31 to fulfil its obligations to the Financial Action Task Force, an inter-governmental body tackling terror financing.

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