What are the Demerits of Statutory Corporationsof Public Utilities?

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1. No flexibility in operations:

A noted disadvantage in such corporations is the absence of flexibility in operation.

2. Misuse of power:

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There are greater chances of misuse of power and authority by the superiors.

3. Lack of efficiency:

As the competition would be nil or at the minimum, the efficiency in operations would noticeably be at its least.

4. Not easy to alter activities:

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The power and functions cannot be easily changed unless the Act itself is changed at the Parliament or the State Legislature.

5. Political interference:

Though political influence would be minimum, these corporations are not totally free from the influence of political parties and leaders.

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