In the judgment of Union of India and Another vs. Deloitte Haskins and Sells LLP & Another, the Supreme Court has enunciated and cleared the law pertaining to the removal and resignation of a statutory auditor vis-à-vis the proceedings initiated under Section 140(5) of the Companies Act, 2013 (“Act”). The Supreme Court upheld the constitutional validity of Section 140(5) of the Act and interpreted it as “neither discriminatory, arbitrary and/or violative of Articles 14, 19(1)(g) of the Constitution of India”. The Supreme Court clarified that the resignation of an auditor after filing an application under Section 140(5) of the Act does not automatically terminate the proceedings initiated under this Section.Continue Reading Supreme Court Sets the Bar Too High for the Statutory Auditors
Treatment of Employees Provident Fund Dues under the IBC
In its recent judgment in State Bank of India vs Moser Baer Karamchari Union, the Apex court has reiterated the settled legal position of law pertaining to treatment of Employees’ provident fund, pension fund and gratuity Fund (“EPF Dues”) under the Insolvency and Bankruptcy Code, 2016 (“Code”). The primary reason for various interpretations of how PF dues are treated under the Code ensues from the overlapping nature of certain provisions within the Code itself, the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (“EPF Act”) and the Companies Act, 2013. The article traces the judicial trend in treatment of EPF dues under the code and analyses the reasoning put forth by various adjudicating authorities in deciding on the rights of the employees of the corporate debtor.Continue Reading Treatment of Employees Provident Fund Dues under the IBC
FVCI Regulations 2.0: SEBI Proposes to revise FVCI Registration and Eligibility Conditions
The Securities and Exchange Board of India (“SEBI”) has released a consultation paper on May 18, 2023 suggesting changes to the regulatory framework for registration and eligibility of Foreign Venture Capital Investors (“FVCIs”). Public comments have been invited on the consultation paper.
Continue Reading FVCI Regulations 2.0: SEBI Proposes to revise FVCI Registration and Eligibility Conditions
SEBI’s proposals are broadly to align the conditions under the SEBI (Foreign Venture Capital Investor) Regulations, 2000 (“FVCI Regulations”) with certain conditions under the SEBI (Foreign Portfolio Investors) Regulations, 2019 (“FPI Regulations”), and with a view to ensure adequate due-diligence and regulate the inflow of foreign capital in India through the FVCI route.
Application for Payment of Stamp Duty must be Adjudicated within 30 Days: Delhi High Court
The lack of a fixed time limit for adjudication of applications for proper stamp duty under the provisions of the Indian Stamp Act, 1899 (“Act”) often results in inordinate delays in stamping of instruments. In a judgment that will exponentially expedite the process of adjudication, the Delhi High Court (“Delhi HC”) has now opined that the Collector of Stamps shall communicate to the parties the proper stamp duty within 30 days of the date of the application.Continue Reading Application for Payment of Stamp Duty must be Adjudicated within 30 Days: Delhi High Court
India’s Online Gaming Industry bets on federal level rules
India notified amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (“Gaming Rules”), on April 6, 2023. This is a key step to regulate online gaming at a federal level in India.Continue Reading India’s Online Gaming Industry bets on federal level rules
Municipal Corporation cannot cancel Occupation Certificate for developer’s failure to obtain NOC from land-owning authority
In the matter of M/s. Satra Plaza Premises Co-operative Society Limited (“Petitioner”) vs. Navi Mumbai Municipal Corporation and Ors., a Division Bench of the Hon’ble Bombay High Court (“BHC”) has, inter alia, held that incorporation of a condition in the Occupancy Certificate (“OC”) by the Navi Mumbai Municipal Corporation (“NMMC”) to obtain a no-objection certificate (“NOC”) from the City and Industrial Development Corporation (“CIDCO”) was illegal and without any authority of law. Further, it quashed and set aside the order of the Municipal Commissioner cancelling the OC and the revised Commencement Certificate (“CC”) due to non-obtainment of NOC from CIDCO.Continue Reading Municipal Corporation cannot cancel Occupation Certificate for developer’s failure to obtain NOC from land-owning authority
Disenfranchising Majority Shareholders – Is it Constitutionally Valid?
Even after the ‘right to property’ was abolished as a fundamental right by the 44th Amendment to our Constitution, it has continued as a ‘constitutional right’ by virtue of Article 300-A, which provides that – “No person shall be deprived of his property save by authority of law”.Continue Reading Disenfranchising Majority Shareholders – Is it Constitutionally Valid?
Are Online Reviews Regulated – The Indian Narrative
The world today thrives on online purchases and recommendations. Most of us have relied upon or submitted online reviews for a product we have purchased, food we have consumed or even a service we have availed at some point or the other. From a service provider or seller’s perspective, there are several monetary incentives attached to such online reviews and ratings. Service sectors that get the most online reviews are food delivery services, restaurants, hotels, home cleaning or repair works and the likes. In case of products, there aren’t many that are indifferent to online reviews.Continue Reading Are Online Reviews Regulated – The Indian Narrative
‘Over-the-Top’ Interference with Curated Content in India
Over-the-Top curated content platforms (OTT/OTT platforms) have found their niche in India. From international platforms like Netflix, Amazon Prime Video and Disney-Hotstar to home-grown streaming platforms like JioCinema, ZEE5, Voot, SonyLiv, Aha and ShemarooMe, India is a key market for one and all.Continue Reading ‘Over-the-Top’ Interference with Curated Content in India
The Layering Restrictions & WOS exemption – Need for Regulatory clarity
Ever since the stock market scam of 2001 (Ketan Parekh Scam) was brought to light, regulators have been vigilant about the use of complex corporate structures to circumvent statutory restrictions and divert company funds. After the magnitude of financial irregularities in the Ketan Parekh Scam came to light, the Joint Parliamentary Committee (“JPC”) and the erstwhile Department of Company Affairs (“DCA”) proposed steps to prevent companies from using the ‘subsidiary route’ to siphon off funds, by providing inter-corporate loans.Continue Reading The Layering Restrictions & WOS exemption – Need for Regulatory clarity