The Cabinet on Friday approved the repeal of the Prevention of Terrorism Act through an ordinance, Home Minister Shivraj Patil said in New Delhi.
A review committee will decide the future course of all POTA cases within a year, he said.
Asked about the status of the terrorist organisations banned under POTA, the minister said that these organisations would continue to be banned under the Unlawful Activities (Prevention) Act.
The amended Unlawful Activities (Prevention) Act would have provisions to check funding of terrorist outfits, he said.
The minister said that the amended act would be milder than POTA and the onus would be shifted back to prosecution to prove the guilt of the accused, reversing the provision of POTA wherein the accused had to prove his innocence.
Two bills will be introduced in the next session of the Parliament to replace the ordinances.
A statement issued by the home ministry said the government was concerned with the manner in which POTA was "misused" in the past two years.
The POTA, which was notified on March 28, 2002, is to lapse on October 23.
