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FOREIGN investors will be required to give a commitment that they will not do anything detrimental to India’s interest as the government looks to tighten scrutiny of foreign direct investment, but experts say the regulation is not so innocuous. The department of industrial policy and promotion or DIPP, the key government body for policy on foreign direct investments, has initiated discussions with concerned ministries including finance, law, home, and the RBI.
The Law Commission in its report had recommended that pendency of large number of cases relating to cheque bouncing tarnish the image of business. Cases relating to dishonoured cheques affect business within and outside the country. It said cheque bouncing cases need to be speedily disposed of through this measure, lest litigants may lose faith in the judicial system. Speedy disposal of such cases would instil confidence.
Life Insurance Corporation of India is likely to submit new unit-linked insurance plans Ulips with the regulator in light of its two plans coming to a close. The corporation’s endowment plan Wealth Plus closed on May 8 while another pension plan Market Plus will close at the end of next month. It is likely to float new schemes to ensure that there are enough products in its stable.
The government will consider changes in rules to allow 100% foreign owned and well capitalised non-banking finance companies (NBFCs) to set up subsidiaries, removing the curbs introduced by the foreign direct investment guidelines issued last year. The Reserve Bank of India will work out the details of the changes, a government official told.
Chief Information Commissioner Wajahat Habibullah on Tuesday convened a meeting of all the Information Commissioners to discuss the Delhi High Court’s stand that the Central Information Commission had no powers to frame rules for its regulation.
“Information is power. This is truer now, in this information age, than ever before. In a democracy this power of information which the public authorities possess is to be shared with the people. But at the same time, not every piece of information is to be made public. There is the public interest and democratic purpose in dissemination of information on the one hand and the competing private rights and national interests in general non-disclosure, on the other.”
If a person convicted for issuing a cheque without balance in his bank account is ordered to pay compensation to the payee, he can be sentenced to imprisonment under Section 357(3) of the Criminal Procedure Code, the Supreme Court has held in the case, K A Abbas vs Sabu Joseph. In this case, the court asked the drawer to pay Rs 5 lakh as compensation for issuing a cheque which bounced.
The Delhi high court has dismissed the appeal of Swadeshi Cement Ltd against the order of the Debt Recovery Appellate Tribunal asking it to deposit 25 per cent of the dues before moving the court. The creditor, Asset Care Enterprises, had invoked the power under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act against the cement firm.
The Delhi high court last week declared that the award of the sole arbitrator appointed by the International Court of Arbitration in the dispute between Fittydent International GmBH and Brawn Laboratories was enforceable in India. The award was in favour of the foreign firm, which had a licence agreement with the Indian firm for manufacture and sale of denture products.
S.O. 1217(E). In exercise of power by sub section (2) of section 1 of the Payment of Gratuity (Amendments) Act, 2010(15 of 2010), the central Government hereby appoints the 24thday of May, 2010 the on which said act will come into force.
