Which of the following is a distinct feature of a statutory corporation in India?

Correct option is A

The correct answer is: (a) It is created by a special Act, has independent legal status and can sue/be sued
Explanation:
· A Statutory Corporation (or Public Corporation) is a body corporate formed by a Special Act of Parliament or by the State Legislature.
· The Act defines its powers, duties, functions, and immunities.
· It has a separate legal entity distinct from the Government.
· This legal status allows it to own property, enter into contracts, and sue or be sued in its own name (e.g., Life Insurance Corporation of India, State Bank of India).
Information Booster:
· Financial Autonomy: Unlike government departments, statutory corporations are usually independently financed. They can retain their earnings and utilize them for their business instead of depositing them into the central treasury.
· Service Motive: While they operate on business lines, their primary motive is often public service rather than profit maximization.
· Accountability: They are accountable to the Parliament or State Legislature that created them, not to a specific ministry for day-to-day functioning.
Additional Knowledge (Incorrect Options):
It has no legal existence separate from the government (Option b)
· This describes a Departmental Undertaking (like the Indian Railways or Post & Telegraph), which is treated as an extension of the government ministry itself.
Its employees are considered government civil servants (Option c)
· Employees of a statutory corporation are not civil servants. They are recruited and governed by the corporation’s own rules and regulations, unlike departmental undertakings where employees are directly under the government.
It is fully owned by private shareholders and receives no government funding (Option d)
· Statutory corporations are wholly or majorly owned by the State. The government subscribes to the capital, and they are not private entities.