New Delhi, June 26: Defence Minister AK Antony today rejected the Administrative Reforms Commission's recommendation to repeal the Armed Forces (Special Powers) Act, saying the time has not come to scrap the anti-terror law.

"I don't think the time has come for the repeal of the AFSPA but there is always scope for improvement," Antony told reporters a day after the Commission, headed by M Veerappa Moily, in its report on "Public Order" submitted to Prime Minister Manmohan Singh, recommended the repeal of the contentious Act.

The ARC had also suggested that the Unlawful Activities (Prevention) Act be amended to enable the deployment of armed forces in the North Eastern States.

Maintaining that the Defence Ministry is very stringent in preventing human rights violations, Antony stressed there is no need to repeal the law as yet "but there is always scope for improvement.

"We can make the law more humane," he said on the sidelines of celebrations to mark the centenary of the Defence Finance Organisation.

Explaining the reasons for his opposition to repealing the Act, Antony said the armed forces were asked to maintain law and order and fight insurgency in extraordinary conditions and such situations always required "extraordinary powers and laws".

Antony said the army does not suo moto get involved in maintaining law and order but is always asked to take up this task by the Centre or State Governments to counter antinational elements, terrorists and insurgents.

The army is deployed in the NE and JK because of the extra-ordinary situation there and will continue to be in these areas to fight insurgency till the situation becomes normal, he said.

Antony's statement goes against demands by the PDP, the partner of the ruling Congress in JK , for repealing the AFSPA.

He said his Ministry kept a close check on human rights abuses and had taken strong action against those who violated laws.

"Even extra-ordinary action has been taken in some cases to send out a clear signal that we will not tolerate any violation of human rights," Antony said.

Earlier, in his speech, Antony congratulated Defence Finance Officials on their organisation completing 100 years.

"At the time of independence, the department handled a budget of Rs 200 crore and today it handles a budget that is 500 times higher.

"Handling such a massive budget is a huge and onerous task.

I am sure that the finance division will continue to show transparency and objectivity in discharging its functions," he said.