EXPANDING THE NET - THE INCREASING SCOPE OF THE PREVENTION OF CORRUPTION ACT 1988

Introduction

The Prevention of Corruption Act, 1988 (“PC Act”), was promulgated to curb corruption in the country. In particular, the PC Act serves as a consolidated body of law to prevent corruption by public servants in India. Though the PC Act came into force in 1988, recent years have seen a marked judicial and legislative inclination towards expanding the scope of the PC Act and strengthening its provisions.

For instance, in CBI v. Ramesh Gelli[1] in 2016, the Supreme Court found that the Managing Director and Executive Director of a private bank, operating under a licence, issued by the Reserve Bank of India, would be considered as a ‘public servant’ and thus would be liable under the PC Act. Subsequently, in 2018, the PC Act was amended by the legislature, expanding the scope of offences regarding commercial organisations carrying on business in India. Continue Reading Expanding the Net: The Increasing Scope of the Prevention of Corruption Act, 1988

THE 1986 ACT OR THE 2019 ACT - THE SUPREME COURT CLARIFIES APPLICABILITY 

Introduction:

Recently, in Neena Aneja & Anr. v. Jai Prakash Associates Ltd.[1], the Supreme Court of India analysed and clarified the impact of the Consumer Protection Act, 2019 (“2019 Act”), upon pending cases that were filed under the consumer fora, constituted under the Consumer Protection Act, 1986 (“1986 Act”). In this regard, the Court has inter alia discussed and analysed (i) a wide range of judicial precedents, which have interpreted the impact of a change in forum on pending proceedings; (ii) the objects, intent, legislative scheme, and procedural history behind the consumer laws in India, particularly in terms of jurisdictional provision contained in the 2019 Act; and (iii) the relevant portions of the 2019 Act in so far as they pertain to the pecuniary jurisdiction vis-a-vis the erstwhile 1986 Act. Continue Reading The 1986 Act or The 2019 Act? The Supreme Court Clarifies Applicability

SEBI Clarifies Key Aspects of Investment Advisers Regulations through Informal Guidance

The Securities and Exchange Board of India (“SEBI”), through its interpretive letter, issued upon the request of Paytm Money Limited (“Paytm”) under the SEBI (Informal Guidance) Scheme, 2003 (“Informal Guidance Scheme”), on April 09, 2021, has clarified that investment advisers (“IAs”), registered with SEBI under the SEBI (Investment Advisers) Regulations, 2013 (“IA Regulations”), may not: (i) be reimbursed from the asset management companies for any expenses incurred for services rendered to their clients, even though the adviser may not be charging any advisory or execution fees; (ii) seek electronic consent from clients prior to rendering any investment advice, instead of a signed investment advisory agreement; and (iii) appoint a department head, who is not a managing director or designated director or managing chairman or executive chairman or any other equivalent management body of the IA, as its ‘principal officer’. Continue Reading SEBI Clarifies Key Aspects of Investment Advisers Regulations through Informal Guidance

“A predicate offence is the sine qua non for the offence of money laundering” - IS IT REALLY

1. INTRODUCTION

The Prevention of Money Laundering Act, 2002 (“PMLA”) has proven to be a revolutionary legislation and is certainly one of its kind. The nature of the statute and the utmost necessity that it be enforced in a manner that fulfils the legislative intent thereby creating economic security as well as the nation’s requirements have resulted in wide powers being granted to the Enforcement Directorate (“ED”). Although there are significant judgments that have set the law straight, both procedural and substantive, or at least strived to, a fascinating, albeit controversial judgment has been passed by the High Court of Bombay recently in Babulal Verma and Ors. vs. Enforcement Directorate and Ors (“Babulal Judgment”).[1] Continue Reading “A predicate offence is the sine qua non for the offence of money laundering” – IS IT REALLY?

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Attachment Details Insolvency-and-Bankruptcy-Code-Re-affirming-its-primacy-over-the-Prevention-of-Money-Laundering-Act-2002

It has been an active month for the Insolvency and Bankruptcy Code, 2016 (“Code”/ “IBC”). On one hand, the legislature has inserted a new chapter into the Code providing for pre-packed insolvency resolution process for micro, small or medium enterprises (“MSMEs”) to ease and fast track the resolution for the stressed MSMEs, while on the other hand, Courts through various landmark decisions have upheld the primacy of the Code which will play a significant role in boosting the confidence of the stakeholders, particularly the creditors and the resolution applicants, in the sanctity of the corporate insolvency resolution process (“CIR Process”). Continue Reading Insolvency and Bankruptcy Code: Re-affirming its primacy over the Prevention of Money Laundering Act, 2002

‘CASH ONLY’ to dissenting financial creditors - Supreme Court in Jaypee

The Supreme Court’s judgment in Jaypee Kensington Boulevard Apartments Welfare Association & Ors vs. NBCC (India) Ltd. & Ors.[1] (“Jaypee Decision”) has laid down some new requirements whilst reinforcing several old ones in relation to the insolvency resolution regime of the country. In this article, we examine and discuss the implications of the rights of dissenting financial creditors as held in the Jaypee Decision on the corporate insolvency resolution process. Continue Reading ‘CASH ONLY’ to dissenting financial creditors – Supreme Court in Jaypee

From Harbour to Hardships Understanding the Information Technology (Intermediary Guidelines and Digital Media Ethics Code Rules 2021 - Part I

Evolution of intermediary liability in India

Ever since the enactment of the Information Technology Act, 2000 (“the IT Act”), the treatment of intermediary liability[1] has been pendulous. The recent Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (“2021 Rules”), bring about the most significant changes for intermediaries in terms of increasing due diligence obligations and liability in cases of non-compliance. Continue Reading From Harbour to Hardships? Understanding the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 – Part I

IBC and Limitation - The Dust Settles Blog

The Supreme Court in the case of Laxmi Pat Surana vs Union Bank of India & Anr. [Civil Appeal No. 2734 of 2020] (“Laxmi Pat”) has settled the issue of the applicability of Section 18 of the Limitation Act, 1963 (“Limitation Act”) to applications for initiation of insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (“IBC”). The Apex Court has held that Section 18 of the Limitation Act (“Section 18”) applies to extend the period of limitation for filing an application under Section 7 of the IBC. Continue Reading IBC and Limitation: The Dust Settles

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Indian Aerospace & Defence Sector Recent Changes and their Impact - Part 1

Part 1 of our blog post in this series discussed the evolution of the Aerospace and Defence (A&D) sector in India over the years and certain recent policy changes introduced by the Government during the Covid era, focused on making the A&D sector one of the major pillars of the Atmanirbhar Bharat Abhiyan.  In this second part, we analyse how these policy changes will impact various players in the A&D sector in India going forward.   Continue Reading Indian Aerospace & Defence Sector : Recent Changes and their Impact: Part 2

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Indian Aerospace & Defence Sector Recent Changes and their Impact - Part 1

The Indian military aerospace and defence (A&D) industry has seen a slew of policy decisions being taken and implemented during the Covid era. From increasing the automatic route limit for foreign investment in the sector, to imposing a ban on import of various defence items, it is clear that the Government is focused on the growth and development of the sector. This two-part post analyses the various policy decisions taken recently and their impact on the various players in the A&D ecosystem. In the first part, we analyse the existing A&D sector landscape and its evolution so far. In part two, we analyse the impact of the various recent policy changes and the changing role of the players in the sector. Continue Reading Indian Aerospace & Defence Sector : Recent Changes and their Impact: Part 1