The commission, however, warned that the system should only be used with the "highest degree of caution" after changing laws.
Electronic tagging has the potential to reduce both fugitive rates, by ensuring that a defendant can easily be located, and government expenditure, by reducing the number of defendants detained at state expense.
In its report submitted to the law ministry today on "Provisions relating to bail", the panel quoted a New Zealand law to define electronic tagging or electronically monitored (EM) bail as a mechanism that is also known as a "restrictive" form of bail.
EM bail is available in New Zealand for defendants and young people aged between 12 and 17 years who would otherwise continue to be held in custody in prison while they waited for a court hearing.
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But at the same time, the Commission warned that electronic tagging had a "grave and significant impact on the constitutional rights" of individuals.
It also recommended that section 50 of the Code of Criminal Procedure (CrPC) be amended to ensure that a person arrested is given in writing, in the language he or she understands, the reasons for the arrest.
It also said a person should not continue to remain behind bars as an undertrial because of an incomplete investigation.
The Law Commission, headed by Justice (retd) B S Chauhan, said it was of the opinion that anticipatory bail must not only be granted with caution but must also be made operative for a limited period of time.
It said undertrials accused of crimes carrying a punishment of seven years in jail should be released on bail if they have spent one-third of that time, or two-and-half years, behind bars while on trial.
It said undertrials who could not produce a non-monetary surety -- an undertaking by an individual that the undertrial will appear before authorities when required -- should be allowed to instead deposit government identity documents such as Aadhaar or PAN cards to get bail.
As of now, Section 436 A of the CrPC deals with the maximum period for which an undertrial prisoner can be detained.
Two-thirds of prison inmates in India are undertrials, the National Crime Records Bureau (NCRB) has said.
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