Photo of Drishti Das

Associate with the General Corporate and Media and Entertainment practice at the Mumbai office of Cyril Amarchand Mangaldas. Drishti has graduated from the West Bengal National University of Juridical Sciences in 2018. She can be reached at drishti.das@cyrilshroff.com.

Ministry of Corporate Affairs circular - Legal Enforceability

The Ministry of Corporate Affairs (MCA) has been entrusted with the responsibility of administering the Companies Act, 2013 (Act). The MCA, from time to time, issues circulars and clarifications to clarify the provisions of the Act and the rules made thereunder (Rules). For example, in the first year of operation of the Act, the MCA issued 89 clarificatory circulars. In 2015 and 2016 the number was 22 and 21 respectively. In this article, we assess whether such circulars and clarifications are legally enforceable and how far companies may rely on them.

Here, it is pertinent to note that unlike Section 119(1) of the Income Tax Act, 1961, which empowers the Central Board of Direct Taxes to issue orders, instructions and circulars, there is no corresponding provision in the Act that empowers the MCA to issue such circulars and clarifications. As explained in our earlier post, executive action reflects steps taken by the Government in its sovereign authority. Article 73 of the Indian Constitution states that, subject to the provisions of the Constitution, the executive power of the Union extends to matters on which the Parliament’s legislative power extends. However, this power cannot operate in matters of an ‘occupied fieldi.e., where prior legislation over the subject matter exists.
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Challenges and Opportunities in the Indian Media and Entertainment Industry - Film Industry

The media and entertainment industry in India enjoyed a stellar performance in 2018, with the film segment expanding by 12.2% to reach an annual revenue of INR 174.5 billion. Of this amount, the domestic film revenues crossed INR 100 billion with Net Box Office Collections for Hindi films at INR 32.5 billion – the highest ever.

The number of Hollywood films released in India fell from 105 in 2017 to 98 in 2018. Hollywood films (consolidated with Indian language dubbed versions) reached Net Box Office Collections of INR 9.21 billion. Thirteen Hindi films reached the INR 100 crore mark in 2018, the highest number the industry has ever seen. Multiplexes added to the total screen count to reach 9,601; however, the number of single screens declined.[1]
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