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Cartels are one of the most pernicious offences and deserve serious penalties for deterrence, the Competition Commission of India (CCI) has said in several decisions.

On 24 July 2020, the National Company Law Appellate Tribunal (NCLAT), in its decision in GRIDCO Limited v Surya Kanta Sathapathy and Others [C.A.

The conflicted interpretation of Section 65B of the Indian Evidence Act, 1872 (Act) by two judgments of the Supreme Court was referred to a three judge Bench of the Supreme Court in the case of Arjun Panditrao Khotkar v. Kailash Kushanrao Gorantyal And Ors.[2020SCCOnLineSC571].

The concept of ‘proxy advisor’ is of western import and despite the nascency has slowly and steadily gained importance in the Indian market as a critical intermediary and a rather persuasive influencer of a company’s decision making and policie

In 2019 a three-judge bench (full bench) of the Bombay High Court had to decide whether the courts can exercise their power to grant interim or ad interim reliefs under Section 9 of the Arbitration and Conciliation Act 1996 where the arbitration clause is contained in an agreement that is i

The Central Government, vide notification dated 17 October 2019 had notified the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (NDI Rules) in supersession of the Foreign Exchange Management (Transfer  and Issue of

The Supreme Court of India (SC) in Director of Income Tax-II (International Taxation) v M/S Samsung Heavy Industries Co. Ltd. (Civil Appeal No. 12183 of 2016) has held that the Project Office (PO) set up by Samsung Heavy Industries Co. Ltd.

Globally, the COVID-19 pandemic and the consequent lockdowns have increased people’s interest in exploring and participating in online games.

The Insurance Regulatory and Development Authority of India (IRDAI) on 22 July 2020, issued a circular to all insurance companies, in relation to the transfer of shares of insurance companies (Circular).

Just as the Non-Banking Financial Companies (NBFC) sector was emerging out of the recent Infrastructure Leasing & Financial Services (IL&FS) and the Dewan Housing Finance Limited (DHFL) crisis, COVID 19 hit the global markets.

How to Structure Business Acquisitions in Indian Private M&A: Legal, Tax and Accounting Considerations

Recently the Supreme Court in Kunjumuhammed and Anr. v Mariyumma (Civil Appeal No. 2771 of 2020), held that while hearing a second appeal, the High Court must frame the substantial question of law.

The Ministry of Consumer Affairs, Food, and Public Distribution, Government of India notified and made effective the provisions of the Consumer Protection (E-Commerce) Rules, 2020 (E-Commerce Rules) under the Consumer Protection Act, 2019 (Act) from 23 July 2020.

In the arbitration regime, party autonomy has gained much recognition.

The Karnataka Land Reforms Act, 1961 (Act) was enacted with an objective to consolidate and make uniform laws relating to purchase and holding of agricultural land, conferment of ownership on tenants, vesting of occupancy rights, and ceiling on land holdings of the agricultural land in the

On the basis of clinching evidence such as emails and WhatsApp communications, the Competition Commission of India (CCI) found ten manufacturers and suppliers of brake blocks to Indian Railways (Railways) guilty of collusive bidding.

The amendments to the Indian Stamp Act 1899 (Act) have come into effect from 1 July 2020.

It has been more than a year since the government of Gujarat brought into effect the new Gujarat Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2019 (S&E Act 2019).

With the amendments to the Indian Stamp Act 1899 (Stamp Act) brought in by the Finance Act 2019 (to be effective from 1 July 2020), there was an ambiguity on the application of such amendments on issuance and transfer of units of alternative investment funds (AIFs).

The Securities and Exchange Board of India (SEBI), at its board meeting held on 25 May 2020, approved several significant changes to regulations governing listed companies.

On 9 June 2020, the Mumbai Bench of the National Company Law Tribunal (NCLT) passed an order admitting a petition for the initiation of the corporate insolvency resolution process (CIRP) under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) in the matter of Agrocorp International Priv

On 24 June 2020, the Reserve Bank of India (RBI) issued directions on “Loans Sourced by Banks and NBFCs over Digital Lending Platforms: Adherence to Fair Practices Code and Outsourcing Guidelines” (Directions) to scheduled commercial banks (Banks) and non-banking financial companies (NBFCs) in re

In a significant judgment dated 9 June 2020 titled ‘Indus Biotech Private Limited v.

On 19 June 2020, the Controller General of Patents, Designs and Trade Marks (Respondent) issued a Public Notice (Recent Notice) to the effect that the deadlines for various acts/proceedings, filing of any reply/document, payment of fees, etc relating to any intellectual property matter (IP Filing

The Securities and Exchange Board of India (SEBI) has granted certain significant relaxations with respect to new capital raises / preferential allotments by stressed public listed companies.

A single-judge bench of the Hon’ble High Court of Delhi (High Court), in its judgment, MEP Infrastructure Developers Limited v South Delhi Municipal Corporation & Ors. dated 12 June 2020, held that a force majeure clause instantly comes into effect once it has been ack

India’s capital markets regulator, the Securities and Exchange Board of India (SEBI) has, on 16 June 2020, notified amendments (Amendments) to the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014 (InvIT Regulations) and Securities and Exchange Boar

A three-judge bench of the Supreme Court (SC), vide its judgment dated 5 June 2020 passed in Shakti Bhog Food Industries Limited v The Central Bank of India & Anr (Civil Appeal No.

The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (Takeover Regulations) have been amended, effective 16 June 2020, to grant certain significant relaxations to promoters looking to consolidate their holding in Indian listed compan

India’s appeal tribunal for competition matters - the National Company Law Appellate Tribunal (NCLAT) - has dismissed an appeal filed by a natural person - Pankaj Raj (Informant) - against an order of the Competition Commission of India (CCI).  (Maj.

On 5 June 2020, the Competition Commission of India (CCI) in disposing of Suo Motu Case No 05 of 2017 concluded that National Engineering Industries Limited (NEI), Schaeffler India Limited (Schaeffler), SKF India Limited (SKF) and Tata

In order to allow a larger group of listed companies to raise funds from the public, during the testing times brought about by COVID-19, the Securities and Exchange Board of India (SEBI) has issued a circular dated 9 June 2020 (Circular).

The Central Board of Indirect Taxes and Customs (CBIC) has issued a circular dated 10 June 2020 (Circular), clarifying the applicability of goods and services tax (GST) on the remuneration paid to whole time directors and independent directors.

On 4 June 2020, the Reserve Bank of India (RBI) issued a notification (Notification) relaxing the timelines for certain compliances to be undertaken by banks, authorised payment system operators, and system participants.

The Intellectual Property Appellate Board (IPAB) vide three office orders dated 11 May 2020, 12 May 2020 and 26 May 2020 has set out the framework for future hearings and filings during the ongoing COVID-19 pandemic.

As part of the Government’s ongoing efforts to combat the economic fallout of the COVID-19 crisis, the Union Finance Minister in a press conference dated 24 March 2020 announced an increase in the threshold for invoking the corporate insolvency

Ever since the Hon’ble Finance Minister of India announced the suspension of initiation of corporate insolvency under the Insolvency and Bankruptcy Code 2016 (IBC) in wake of the COVID-19 pandemic, there have been several market speculations about the nature and extent of the proposed suspension

The Authority for Advance Rulings (AAR) recently rejected applications made by three Mauritian entities on the taxability of capital gains on indirect transfer of an Indian company’s shares, under the India-Mauritius Double Taxation Avoidance Agreement (Tax Treaty).

On 14 May 2020, the Learned Single Judge of the Hon’ble High Court of Delhi delivered a landmark judgment in the case of Horlicks Limited & Anr. v Zydus Wellness Products Limited (CS(COMM) 464 of 2019).

The High Court of Delhi, in its judgment, Parsvnath Developers Limited & Anr. v Rail Land Development Authority, dated 19 May 2020, has reiterated the powers of a Court under Section 11 of the Arbitration and Conciliation Act, 1996 (Act).

It is not an everyday instance for the apex court in the country to adopt a pro employer approach, specifically in a matter pertaining to a disciplinary inquiry initiated against an employee.

A major impact of the lockdown and Covid-19 has been, one that most shy away from admitting, the cash flow crunch.

India with the second largest armed forces and with the fifth largest defence budget in the world aims to achieve self-reliance in defence production.

A three-member bench of the National Company Law Appellate Tribunal (NCLAT), presided over by the Hon’ble Acting Chairperson, vide its judgment dated 22 May 2020 passed in the matter of State Bank of India  v M/s Metenere Limited [Company Appeal (AT) (Insolvency) No.

The case finds genesis in the Competition Commission of India’s (CCI) order of investigation against Mahyco Monsanto Biotech (India) Private Limited’s (Mahyco Monsanto) conduct in relation to the sub-licensing of a patented gene.

The Supreme Court of India (SC) in its recent case of PILCOM (Civil Appeal No. 5749 of 2012 with Special Leave Petition (Civil) No.

In order to ease the impact of the Covid-19 pandemic on the Indian economy, the Reserve Bank of India (RBI) on 27 March 2020 and 17 April 2020  introduced certain regulatory measures to deal with the challenges arising due to the lockdown (together, the Initial Covid Regulatory

A single-judge bench of the Hon’ble High Court of Delhi, comprising Hon’ble Mr Justice Navin Chawla, vide judgment dated 20 May 2020 in the matters of Tripta Kaushik v Sub Registrar VI-A, Delhi & Anr and Ramesh Sharma v Government of N.C.T.

On 18 May 2020, the Controller General of Patents, Designs and Trade Marks (Respondent) issued another Public Notice (New Notice) whereby the deadlines for various acts, proceedings, filing of any reply/document, payment of fees, etc relating to any intellectual property matter (IP Filings)

The Delhi High Court (Court) passed an order dated 11 May 2020, in the matter of M/s SMS Ltd v Konkan Railway Corporation Ltd (O.M.P.

The Delhi High Court (Court), in its judgment dated 12 May 2020 in Spentex Industries Ltd v Quinn Emanuel Urquhart Sullivan LLP, has inter alia held that the legal relationship between a law firm and client is commercial in nature and accordingly covered by Sections 44 and

The Supreme Court of India (SC) in Union of India & Anr v UAE Exchange Centre [Civil Appeal No. 9775 of 2011], held that the liaison office (LO) set up by UAE Exchange Centre LLC (Taxpayer) in India does not constitute its permanent establishment (PE) in India.

The Delhi High Court has vide its order dated 21 May 2020 in the case of Ramanand and ors v. Dr Girish Soni and anr (Rent Control Revision Petition No.

In our previous ERGO update published on 6 May 2020, we endeavored to guide businesses through the standard operating procedure (SoP) that they should incorporate as part of their resumption plan in COVID-19 times.

As several countries including India remain in lockdown and continue to follow strict social distancing measures, the question on everybody’s mind today is how quickly will we return to “business as usual”, after nearly eight plus weeks of stan

On 1 May 2020, the Telangana High Court (Court) passed an order in M/s Pennar Industries Limited & Anr v.

A three-judge bench of the Supreme Court of India (Supreme Court), comprising Hon’ble Justice N.V. Ramana, Hon’ble Justice Mohan M.

The division bench of Kerala High Court comprising of Hon’ble Mr Justice Devan Ramachandran and Hon’ble Mr Justice T R Ravi passed an interim order on 24 April 2020 in the matter of Balu Gopalakrishnan & Anr. v. State of Kerala & Ors.

The impact of current pandemic has been particularly severe on new age and emerging businesses. Many such businesses are seeking bridge or further equity financing rounds, some of which are expected to be ‘down rounds’.

The division bench of the Supreme Court, comprising of Hon’ble Mr Justice UU Lalit and Hon’ble Mr Justice Vineet Saran, in its decision in Quippo Construction Equipment Ltd v Janardan Nirman Pvt Ltd, on 29 April 2020 has inter alia analyzed the provision under the Arbitrat

The division bench of Kerala High Court comprising of Hon’ble Mr Justice Devan Ramachandran and Hon’ble Mr Justice T R Ravi passed an interim order on 24 April 2020 in the matter of Balu Gopalakrishnan & Anr. v. State of Kerala & Ors.

In the matter of Intellectual Property Attorneys Association and Anr v Controller General of Patents, Designs and Trade Marks and Anr, W.P.(C) No 3059/2020 (Writ Petition), the Delhi High Court (Court) passed an order dated 11 May 2020 (Order) extending the limitation period for va

Assessing the impact on a target company due to COVID-19, the lung disease caused by the new coronavirus, is one of the critical focus areas of any due diligence as part of a merger and acquisition (M&A) transaction.

The Finance Act 2020 has introduced several amendments to the Income-tax Act, 1961 (“IT Act”) such as change in residential criteria for individuals and widening the scope of digital transaction taxation.

A three-judge bench of the Supreme Court of India (Supreme Court), comprising Mr Justice Arun Mishra, Mr Justice Vineet Saran and Mr Justice M R Shah has, vide judgment dated 29 April 2020 passed in the matter of Christian Medical College Vello

In Part 1 of their 2-Part article series, the authors lucidly analysed the provisions of the Black Money Act. In Part 2 today, the authors briefly discuss a few defences available to the taxpayers and also deliberate on a few court rulings on the same.

Recently there has been a lot of administrative action in the field of offshore assets and related action initiated under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (BMA).

Companies are in urgent need of funds and given the same, necessary clarifications by the governments on bonafide concerns of foreign investors may prove to be a healing balm.

Soaring high-value M&A deals in the digital space that skip antitrust merger review have spurred a global debate on how fitting merger control thresholds really are

Under Indian income tax law, an individual’s tax residency is determined by his physical stay in India during a Financial Year (FY) (i.e. 1 April to 31 March) as well as his stay in the preceding years.

In the judgement V.

It has been more than a month since the announcement of the lock-down in India by the Central Government, and longer in many other parts of the world.

Amidst the prevailing COVID-19 crisis, states are now contemplating taking diverse measures to offset the economic impact and boost investment opportunities.

With a view to ensure that businesses are not saddled with indirect tax payments and related compliances and to maintain smooth functioning of business activity amidst the COVID-19 outbreak, the Ministry of Finance and Ministry of Commerce and Industry have announced a slew of relaxation me

The Hon’ble Delhi High Court, in its decision dated 28 April 2020 in Indrajit Power Private Limited v Union of India & Ors, has dismissed a writ petition seeking to refrain the invocation of a bank guarantee by the Union of India (Respondent No 1) inter alia due to the

On 1 May 2020, the Secretary, Ministry of Home Affairs, Government of India (MHA Secretary) issued an order extending the nation-wide lockdown period for another two weeks beginning 4 May 2020, albeit with revised restrictions and certain relax

In an unprecedented decision, the Delhi High Court in the case of Brand Equity Treaties Limited v Union of India and Another (Writ Petition Civil No 11040 of 2018) has held the credit of taxes paid on inputs to be a vested right.

Pursuant to the Supreme Court’s directions dated 6 April 2020, several High Courts have issued directions and guidelines regarding the conduct of hearings via videoconferencing (VC) (VC Hearings) for themselves as well their subordinate courts.

The Supreme Court of India, in its judgment dated 22 April 2020 in National Agricultural Cooperative Marketing Federation of India v Alimenta S.A., has refused enforcement of a foreign award on the ground of it being contrary to the fu

On 27 April 2020, the Ministry of Finance notified the long-awaited Foreign Exchange Management (Non-debt Instruments) (Second Amendment) Rules 2020 (NDI Amendment) to permit 100% foreign direct investment (FDI) in insurance intermediaries under the automatic route.

The Ministry of Finance on 17 October 2019 notified the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 (NDI Rules)  in supersession of the Foreign Exchange Management (Transfer of Issue of Security by a Person Resident outside India) Regulations, 2017 and the Fo

The Government of India (GOI) announced a nationwide lock down on account of Covid-19 pandemic with effect from 25 March 2020. This has severely disrupted regular business activities across all sectors of the economy in the country.

The Directorate General of Hydrocarbons (DGH) on 25 April 2020 introduced new measures to simplify the process and procedures associated with Production Sharing Contracts (PSC) of Pre-NELP and NELP oil and gas blocks.

The Hon’ble Supreme Court, vide its judgement dated 22 April 2020, in the case of Union of India and Another v M/s V V F Limited and Another (Civil Appeal Nos 2256-2263 of 2020) and other connected appeals, has upheld the validity of the notifications issued under the Central Excise Act,

The Mumbai Bench of the Income Tax Appellate Tribunal (Tribunal) in the case of M/s Anik Industries Limited (Tax Payer) vs DCIT (ITA No. 7189/Mum/2014 & ITA No.

On 26 February 2020, the Hon'ble Calcutta High Court (High Court) passed a judgment on various civil revisional applications filed under Article 227 of the Constitution of India whereby the High Court held that the pre-acquisition role and intra-acquisition liability of payment of compensat

The Covid-19 pandemic has resulted in a near extinction of primary market fundraising by companies in India.

The Competition Act, 2002 (“Competition Act”), which codifies Indian competition law, has now been enforced for over a decade (since May 2009).

This update is in furtherance of our ERGO coverage on COVID-19 outbreak where attempt to bring forth latest regulatory developments, occasioned by the upsurge in the number of positive cases in the country.

The Reserve Bank of India (RBI) on 17 April 2020 introduced additional regulatory measures to alleviate the impact of COVID-19 pandemic on the Indian economy with a focus primarily on the lending institutions.

Recently, in the case of Sesa Goa Limited v The Joint Commissioner of Income-Tax (ITA No. 17/2013), the High Court of Bombay at Goa allowed a deduction in respect of cess (education cess and higher and secondary education cess) from the business income of the taxpayer.

On April 1, India ushered in a new era of taxation in the digital age.

On 17 April 2020, Ministry of New & Renewable Energy, Government of India (MNRE) issued an office memorandum (Memorandum II) requiring all renewable energy implementing agencies to treat lockdown due to COVID-19 as ‘force majeure’.

The COVID-19 pandemic has forced governments to take exceptional measures such as implementing mandatory lockdowns and restricting travel. This unprecedented situation is raising significant tax issues, especially where there are cross-border elements in the equation.

India’s Union Budget for the fiscal 2020-21 was announced in February 2020 and the tax proposals, after undergoing some important changes, were approved by the Indian Parliament and received Presidential assent on March 27, 2020.

Half - Yearly Newsletter

The Securities and Exchange Board of India (SEBI) vide notification dated 7 April 2020 (Amendment Notification), notified an amendment to the SEBI (Foreign Portfolio Investors) Regulations 2019 (FPI Regulations), expanding the criteria for bei

There is no denial that the Government of India is taking all efforts to improve the ‘Ease of Doing Business’ in the country, especially for MNCs.

The coming decades of antitrust markedly belong to e-commerce, leaving the antitrust regulators across the globe grappling with novel issues.

On April 18, 2020, the Department for Promotion of Industry and Internal Trade (DPIIT), by way of press note 3 of 2020 (PN 3 of 2020), announced a critical change to the Consolidated Foreign Direct Investment Policy (FDI Policy).

India today announced a new policy for foreign direct investment (FDI) from China by way of Press Note 3 of 2020.

The draft Defence Procurement Procedure 2020 (DPP) released by the Ministry of Defence proposes a plethora of vital amendments with the objective of growing domestic capability and achieving national security objectives.

To curb the outbreak of COVID-19 in India, the Government of India had imposed a lockdown on 24 March 2020 for a period of 21 days till 14 April 2020. The said lockdown has now been further extended till 3 May 2020 by the Prime Minister and the Ministry of Home Affairs (MHA).

A single bench of the Bombay High Court has refused ad-interim reliefs to the Petitioners who were seeking to restrain the Respondent bank from negotiating / encashing the letters of credit, on the ground that the contracts with the Respondent

The past week saw a flurry of activity in connection with the adoption and implementation of the virtual system of functioning by the Indian judicial machinery.

In a recent ruling in New Delhi Television Limited v DCIT (Civil Appeal No. 1008 Of 2020) (Ruling), the Hon’ble Supreme Court (Supreme Court) has quashed the reassessment proceedings initiated on New Delhi Television Limited (Taxpayer).

As the situation in view of COVID-19 is evolving, the Government of India has been announcing quite a few relaxations with respect to various income tax related provisions and compliances.

The Hon’ble High Court of Rajasthan (Rajasthan HC) delivered its judgment in the matter of Ultra Tech Nathdwara Cement Ltd v Union of India through the Joint Secretary, Department of Revenue, Ministry of Finance and Ors D.B. Civil Writ Petition No.

Welcome to the fourth edition of the E-Bulletin (Volume II) brought to you by the Employment, Labour and Benefits (ELB) practice group of Khaitan & Co.

The Hon’ble Supreme Court of India (SC) has on 6 March 2020 stayed the operation of the judgment of the Hon’ble Bombay High Court (Bombay HC) in the case of Gurdeep Singh Sachar v Union of India & Ors dated 30 April 2019 (Gurdeep Singh Case) until further notice.

Digitisation is becoming the main stay of commerce and industry in India. The country has entered the cashless phase of economy.

The Securities and Exchange Board of India (SEBI) vide circulars dated 23 March 2020 (Encumbrance Circulars) clarified the position of law with respect to creation of encumbrance on the units held by the Sponsors of infrastructure investment trusts (

Recently, the Rajasthan Advance Ruling Authority (AAR) in the case of M/s Clay Craft India Private Limited [2020 (4) TMI 228] has held that remuneration paid to Directors would attract Goods and Services Tax (GST).

On 7 April 2020 Singapore passed the COVID-19 (Temporary Measures) Act, 2020 (Act) to provide temporary relief to parties who are unable to perform their contractual obligations due to the COVID-19 pandemic (COVID-19), amongst other measures.

As India enters the last week of the 21-day nation-wide lockdown, there is still uncertainty of what lies ahead. It is possible that the lockdown may only be gradually eased.

As the nation has entered the final week of the 21 day nation-wide lockdown announced by the Indian Prime Minister with effect from 25 March 2020 pursuant to the COVID – 19 outbreak, we take a stock of key regulatory measures taken on Central as well as State levels by authorities which hav

The COVID-19 pandemic has disrupted the justice delivery system like never before. The compulsions associated with ‘social distancing’ coupled with lockdown directives have led courts and tribunals to shut their premises to the public.

The onset of Covid-19 has set in motion a series of events which is bound to test India’s debtor-creditor relationship.

On 26 March 2020, the Ministry of Health and Family Welfare (Health Ministry) legalised the doorstep delivery of certain drugs which are ordinarily sold by way of prescription only (Notification).

We hope you found our earlier environmental newsletter helpful. In light of the positive feedback received from many of you, we have decided to make our environmental newsletter a quarterly feature.

The Goods and Services Tax (GST) Council during its 39th meeting, held on 14 March 2020, decided that a special procedure should be prescribed for corporate debtors undergoing the corporate insolvency resolution process (CIRP) under the provisi

The amendments dated 11 February 2020 to the Medical Devices Rules, 2017 and the Drugs and Cosmetics Rules, 1945 (Rules) have broadened the scope of medical devices within the purview of the Indian regulatory framework.

In an encouraging move that may deliver a vital thrust into the investment-intensive, yet cash-stripped Indian telecom sector, the Telecom Regulatory Authority of India (TRAI) in its recommendations dated 13 March 2020 (Recommendations) has proposed that ‘passive’ telecom infrastructure pro

Volume 2 Issue 1 April 2020

Government of India is taking all necessary steps to ensure that we are prepared well to face the challenge and threat posed by the growing pandemic of COVID 19 – the Corona Virus

COVID-19 Updates by Ministry of External Affairs

Indian infrastructure investment trusts (InvITs) and real estate investment trusts (REITs) have drawn investments from some of the largest global institutional investors, sovereign wealth funds and pension funds.

The steady advance of the novel coronavirus (COVID-19) in India and across the world has seen a concomitant increase in the uncertainties for business on a daily basis.

Latest Circulars published by MHA for COVID-19 updates

COVID-19 updates by Indian Council of Medical Research

Amidst the ongoing pandemic of Covid 19, the Ministry of Corporate Affairs (MCA) has rolled out the Companies Fresh Start Scheme 2020 (Company Scheme) and modifications to the LLP Settlement Scheme, 2020 (LLP Scheme).

Latest updates by MoHFW on COVID-19

Updates by World Health Organisation on COVID-19

The current Covid-19 pandemic and the imposition of various social distancing and other restrictions in India and elsewhere in the world is likely to cause significant disruption to supply chains and potentially make the performance of contracts challenging.

As the government introduces further measures to ensure continuity of business in the midst of the ongoing country wide lock-down pursuant to the COVID – 19 outbreak, we have set out below an overview of the key corporate and commercial regulatory updates for the period between 28 March 2020 and

To tackle the various logistical challenges and hardships faced by various corporate entities in ensuring continuity of business in the midst of the various restrictions imposed pursuant to the COVID – 19 outbreak, regulators have announced var

On 24 March 2020, the Hon’ble Finance Minister announced several compliance related relaxations to ease the compliance burden on business community which was followed by a press release (Press Release).

The Income tax Appellate Tribunal, Mumbai in its recent judgment in the case of Volkswagen Finance Pvt Ltd (Taxpayer), ITA No.

As part of its consistent efforts to boost the product, the Securities and Exchange Board of India (SEBI) had permitted listed real estate investment trusts (REIT) to raise funds from the primary market through follow on public offerings, preferential issues, institutional placements and rights i

Recently, the Finance Act, 2020 (FA 2020) has made changes to determination of tax residence of individuals under the Indian Income-tax Act, 1961 (IT Act), especially for Indian citizens and persons of Indian origin (PIO).

Striking a bargain for an exit with an unwilling minority shareholder is usually a challenge and does turn out to be a painstakingly arduous task if litigated by a reluctant minority stakeholder.

The magnitude of this pandemic warrants setting-up quarantine centres in India.

On 25 March 2020, the Board of Governors (in supersession of the Medical Council of India) have framed the Telemedicine Practice Guidelines (Guidelines) which are added as Appendix 5 of the Indian Medical Council (Professional Conduct, Etiquette and Ethics Regulation 2002 (Ethics R

The Government released notifications on February 11, 2020 expanding the scope of regulation pertaining to ‘medical devices’. Historically, India has not had regulations on all ‘medical devices’ – certain categories of devices were regulated under the Drugs and Cosmetics Act, 1940 like ‘drugs’.

On 24 March 2020, the Ministry of Home Affairs issued an order imposing a 21-day lockdown of the entire country as a preventive measure to stop the spread of COVID -19.

Rabindra Jhunjhunwala, Sameer Sah, Aditya Cheriyan, Supratim Chakraborty & Manavendra Mishra

The Reserve Bank of India (RBI) as part of its Statement of Development and Regulatory Policies released on 27 March 2020 announced a slew of measures to safeguard the Indian economy from the shocks of the COVID-19 pandemic.

In August 2019, the Competition Commission of India (CCI) amended the Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011 (Combination Regulations) to: (i) introduce an automatic approval route for transactions wher

In the wake of the novel coronavirus (COVID-19), the Government of India and the local authorities have been continuously issuing measures to contain the pandemic such as prohibition on large gatherings, imposition of a ban on travel, closure o

On 11 March 2020, the World Health Organization (WHO) declared COVID-19 as a pandemic and a public health emergency of international concern.

To tackle the various logistical challenges and hardships faced by various corporate entities in ensuring continuity of business in the midst of the various restrictions imposed pursuant to the COVID – 19 outbreak, regulators have announced various relaxations for such entities in relation

The Finance Bill 2020 was presented in the Indian Parliament on 1 February 2020 (Finance Bill) as part of the Budget proposals (see our Ergo on direct tax related budget proposals here).

Anshul Prakash

COVID-19 has posed unprecedented challenges and in many cases business continuity plans are being put to test for the first time. The scenario is deteriorating in India with more than 560 positive cases being officially reported.

Further to our Ergo Updates in 5 March 2020, 12 March 2020, 13 March 2020, 16 March 2020 and 20 March 2020, we set out below latest regulatory updates in respect of COVID-19 outbreak.

As COVID-19 continues to induce turbulence in our lives, infrastructure and economies, India continues to show its resilience, strength and unity. However, despite best efforts, our daily lives, working patterns, regulatory and legal structures are constantly facing renewed challenges.

The Hon’ble Finance Minister has announced a host of relaxations in the compliance timelines for small taxpayers and various other relief measures. The major announcements from the standpoint of Indirect Taxes included:

With the increase in COVID 19 cases in India, the Indian Government announced a complete nationwide lockdown for 21 days starting from 00:00 hours of 25 March 2020.

The Ministry of Corporate Affairs (MCA) on 23 March 2020 has issued a clarification that any expenditure towards various activities related to COVID-19 shall be considered an eligible corporate social responsibility (CSR) expenditure (MCA Circular).

The World Health Organisation has declared COVID-19 to be a pandemic. All spheres of life have been affected alike and the judicial system is no exception to this. There are various challenges that are being faced by Courts, lawyers and litigants alike which are unprecedented in nature.

With the outbreak of the novel coronavirus (COVID-19), the world is facing unprecedented challenges.

Earlier today, i.e., 23 March 2020, the Supreme Court of India (SC), in Writ Petition (Civil) No. 3/2020, took suo motu cognisance of the difficulties faced by litigants due to the rapidly escalating corona virus outbreak (COVID-19).

Our earlier Ergo COVID 19 - Conducting Board Meetings Virtually, provided an overview on how Indian companies can conduct board meetings through Audio Visual Means (AV Means) during this time, to ensure statutory compliance.

Amidst the outbreak of COVID 19, the Securities and Exchange Board of India (SEBI) had previously extended the compliance timelines prescribed under Regulations 7(3) ( Submission of compliance certificate signed by sha

Earlier today, i.e., 23 March 2020, the Supreme Court of India (SC), in Writ Petition (Civil) No.

Three decades ago, India’s economic liberalisation led to a drastic change in its social and economic landscape, with the country consistently being one of the fastest growing economies in the world.

The Securities Appellate Tribunal, Mumbai (SAT) passed an order in Ravikiran Realty India Ltd & Ors v SEBI, Misc App. Nos. 90 & 382 of 2019 with Appeal No.

The global outbreak of COVID-19 has led everyone, from promoters to investment bankers to transactional lawyers to fund managers, to change the way in which business is done.

With COVID-19 being declared a pandemic, various companies have found themselves facing challenges in complying with the Companies Act compliances due to disruptions in their operations.

COVID-19 Preparedness

The Department of Telecom (DoT) has issued a notification dated 13 March 2020 (Notification) which temporarily liberalises conditions stipulated under the ‘Terms and Conditions – Other Service Provider (OSP) Category’ (OSP Guidelines) with respect to ‘Work From Home’ (WFH)

Further to our Ergo Updates in5 March 2020, 12 March 2020, 13 March 2020 and 16 March 2020, we set out below latest regulatory updates in respect of COVID-19 outbreak.

With the continuing spread of the Coronavirus Disease 2019 (Covid-19 or “coronavirus), various businesses across the globe are facing an increasing number of challenges and issues that need to be addressed and mitigated. Retail sector is no exception to this.

In this webinar, organized by Khaitan & Co in collaboration with the Indo-German Chamber of Commerce (IGCC), Germany Trade and Invest (GTAI), and the Consulate General of the Federal Republic of Germany

With the continuing spread of the Coronavirus Disease 2019 (Covid-19 or “coronavirus), various businesses across the globe are facing an increasing number of challenges and issues that need to be addressed and mitigated. Retail sector is no exception to this.

This webinar was jointly organized by Khaitan & Co and the Indo French Chambers of Commerce and Industry (IFCCI). It addressed pertinent issues related to employers' responsibilities, employees obligations, and business challenges.

The Hon’ble Supreme Court of India in Bank of Baroda v Kotak Mahindra Bank Limited, Civil Appeal No.

In recent years there have been legislative reforms in India aimed at further simplifying inbound and outbound mergers and acquisitions (M&As).

With the intent to reduce the direct tax litigation pending before various courts / appellate forums [i.e.

On 11 March 2020, the World Health Organisation declared the Covid-19 outbreak as a pandemic, thereby calling for more urgent and aggressive action to stifle its spreading.

Travel restrictions and quarantine: The Government of India has categorized passengers into 3 categories for the purpose of quarantine.

The rapid and unprecedented spread of the novel coronavirus (Coronavirus) which started in December last year and soon became every economy’s waking nightmare has dealt a severe blow to businesses worldwide and posed a serious challenge to asse

The rapid and unprecedented spread of the novel coronavirus (Coronavirus) which started in December last year and soon became every economy’s waking nightmare has dealt a severe blow to businesses worldwide and posed a serious challenge to asse

In recent times, the presence of COVID-19 in the business ecosystem is testing contingency plans and business continuity across organizations.  Therefore, like all business functions, teams within organisations pursuing acquisitions and divestm

With each passing hour, the number of confirmed cases of COVID-19 in India is increasing rapidly. As of 13 March 2020 (5 pm), the number reached 81. The country has also reported one casualty in Karnataka.

The World Health Organisation has declared COVID-19 (better known as corona virus) a pandemic, with the number of cases outside China increasing 13-fold.

On 5 March 2020, the Reserve Bank of India (RBI) imposed a moratorium on Yes Bank following unsuccessful attempts to raise additional capital to cover provisions for non-performing assets and a deterioration of its financial position.

The National Company Law Appellate Tribunal (NCLAT), in its judgment dated 12 March 2020, has set aside the order of the Competition Commission of India (CCI) imposing a penalty of INR 10,000,000 (Indian Rupees Ten million) on Eli Lilly and Company (Eli Lilly) for not notifying the acquisit

The macabre of the novel coronavirus (also commonly known as “COVID-19”) has engulfed within its fold as many as 112 countries and territories around the world and international conveyance (the Diamond Princess cruise ship har

On March 4, the Supreme Court of India pronounced the verdict which was the culmination to two years’ worth of legal battle that ensued after the Reserve Bank of India (RBI), on April 6, 2018, restricted financial entities from providing services to cryptocurrency players.

The Constitution Bench of the Supreme Court in New India Assurance Company Limited v Hilli Multipurpose Cold Storage Private Limited (Civil Appeal No 10941-10942 of 2013) has conclusively settled conflicting decisions under the Consumer Protection Act 1986 (Act) pertaining to the l

In India, the number of confirmed cases of COVID-19 coronavirus has reached 73 (as of 12 March 2020: 4 PM), and several other cases are being examined for confirmation.

On 11 February 2020, fresh notifications were released drastically expanding the scope of regulation for medical devices under Indian law.  Traditionally, India has not had expansive regulation on medical devices unlike several western jurisdictions.

A mandatory CSR regime would require investors to ensure that the CSR contributing company has in place adequate avenues for its CSR obligations

Welcome to the third edition of the E-Bulletin (Volume II) brought to you by the Employment, Labour and Benefits (ELB) practice group of Khaitan & Co.

In a landmark judgement, the Supreme Court of India (SC) has quashed the circular issued by the Reserve Bank of India (RBI) on 6 April 2018 (Circular) that prohibited banks and financial institutions from dealing in, and providing services for facilitating dealing in, virtual currencies (Cr

M/s Indo Rubber and Plastic Works (Indo Rubber) entered into a non-exclusive distribution agreement with Sunlight Sports, Singapore (Sunlight Sports) for import and sale of branded sports goods in India by the name ‘Li Ning’.

A global pandemic now, COVID-19 was not something the world seemed to have been ready for when it was first discovered in Wuhan, China, in December 2019.

With an intent to reduce direct tax litigation pending before various courts/ appellate forums  [ie Supreme Court or High Court or Income Tax Appellate Tribunal (ITAT) or Commissioner of Income Tax (Appeals) (CIT(A)), together referred to as Appellate Forum], the Government int

Auditor’s reports are issued by the statutory auditor of the company as an end result of the audit to inter alia consolidate and summarise at the outset the key points emerging therefrom as well as to provide assurance and inspire confidence in the validity of the financial statements as it indic

On 2 March 2020, the Ministry of Corporate Affairs (MCA) issued a standard operating procedure (SOP) for prosecution of independent directors (IDs) and non-executive directors (NEDs) in respect of non-compliance with the provisions of the Companies Act, 2013 (Act).

India has moved up 14 places in 2019 in the World Bank's 'ease of doing business' rankings and is now 63rd among 190 nations. This reflects the positive impact of the reforms undertaken by the government to attract investment in the country.

A recent un-reported judgment of the Bombay High Court (Fedbank Financial Service Ltd through its AO Zahid Sultan v Narendra H Shelar through his LRs & Ors, Arbitration Application No.

In yet another landmark decision in relation to the corporate insolvency resolution process (CIRP) of Jaypee Infratech Limited (JIL), the Supreme Court in Anuj Jain, Interim Resolution Professional for Jaypee Infratech Limited vs. Axis Bank Limited Etc. Etc. (Civil Appeal Nos.

Recently, the Supreme Court in the case of Deep Industries Limited v Oil and Natural Gas Corporation Limited and Anr (Civil Appeal 9106 of 2019 decided on 28 November 2019) has clarified the issue of maintainability of writ petitions against orders passed by the relevant jurisdictional court unde

About 80% to 90% of India’s requirement of medical devices is met through imports. As the present government pushes for its “make in India” agenda, the medical device industry can play a significant role.

The Authority for Advance Rulings (AAR) in its recent verdict in the matter of Bid Services Division (Mauritius) Ltd, In re ([2020] 114 taxmann.com 434 (AAR – Mumbai)), denied the benefits of the capital gains tax exemption under the India – Mauritius Tax Treaty (Treaty) to the taxpayer on the sa

Under the extant Foreign Direct Investment (FDI) policy, 100% FDI is permitted under the automatic route in Single Brand Retail

In a controversial ruling released 17 February, India’s Authority for Advance Rulings, a quasi-judicial body which rules on the taxation of non-residents, denied a capital gains tax exemption under the India–Mauritius tax treaty to a Mauritian entity. 

On 21 February 2020, the Financial Action Task Force (FATF) issued a list of ‘jurisdictions under increased monitoring’, popularly known as the ‘grey list’ and to the dismay of several foreign portfolio investors (FPIs), Mauritius ended up featuring in this list alongside 17 other jurisdict

On the heels of the Punjab & Haryana High Court and the Bombay High Court verdicts, the Rajasthan High Court has vide its judgment in the case of Chandresh Sankla v State of Rajasthan & Others pronounced on 14 February 2020, upheld the

The Income Tax Appellate Tribunal (ITAT) recently held that income from cloud hosting services provided by a company based in the United States of America to its Indian customers was not ‘royalty’ or ‘Fees for Technical Services’ (FTS) under the India - USA Double Taxation Avoidance Agreeme

The Securities and Exchange Board of India (SEBI) by its informal guidance in January 2020 has settled the question of extraterritorial compliance of corporate governance required under Regulation 24(1) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requiremen

The Directorate General of Trade Remedies (DGTR) has, in January and February 2020 initiated the following investigations:

The Supreme Court has recently in its judgment dated 21 January 2020, in the case of Standard Chartered Bank v MSTC Limited [SLP (C) No 20093 of 2019], provided clarity on the interplay between the provisions of Recovery of Debts and Bankruptcy Act 1993 (RDB Act) and Limitation Act 1963 (Limitati

Section 7A of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act) authorises Provident Fund Commissioners to initiate inquiries in order to determine amounts due from employers under the EPF Act.

The Bi-monthly Newsletter of the Nani Palkhivala Arbitration Centre

The Ministry of Corporate Affairs has, on 3 February 2020, issued the long pending notification of sub-sections 11 and 12 of Section 230 of the Companies Act, 2013 (Companies Act).

The landscape of control transactions is evolving continuously and issues around minority protection rights, liabilities and exits associated with such transactions (highlighted above) are being dealt with through various approaches

The budget promises to take steps to enable sourcing of external commercial borrowings and FDI for the sector. Whether this is an indication of certain relaxations in terms of use for other legal entities to set up educational institutions and ease of repatriation of funds remains to be seen.

With a view to streamline the process and timeline involved in issuance of observations on draft offer documents (DOD) filed with the Securities and Exchange Board of India (SEBI), SEBI has issued the “Securities and Exchange Board of India (Issuing Observations on Draft Offer Documents Pen

Welcome to the second edition of the E-Bulletin (Volume II) brought to you by the Employment, Labour and Benefits (ELB) practice group of Khaitan & Co.

Under the current regime, dividends distributed by a company are subject to Dividend Distribution Tax (DDT) at an effective rate of 20.56 per cent. Such DDT is levied on the post-tax income of the company i.e. after the company has already suffered corporate tax on its profits.

The Finance Bill, 2020, has made substantial changes to the manner in which dividends are taxed. Presently, dividends distributed by a company are subject to dividend distribution tax (DDT) at an effective rate of 20.56 percent.

The Budget included several announcements across various verticals of infrastructure projects to expedite necessary holistic development including economic turnaround.

The biggest direct takeaway for startups from this budget was the deferment of the payment of income taxes payable upon exercise of stock options by their employees.

While the world battles forest fires and virus outbreaks, our economy has been suffering from ailments of its own. India’s GDP growth took a sharp plunge in Q2 of this fiscal to come in at 4.5 per cent, with many experts voicing concerns about a prolonged slowdown period.

The government has taken a pragmatic approach by proactively taking several measures to reduce tax litigations across various tax jurisdictions up to the Supreme Court.

Securities and Exchange Board of India (SEBI) has recently notified amendments to the SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 to m

While presenting the Government’s Budget for financial year 2020-21, Hon’ble Finance Minister of India (Hon’ble FM) in her budget speech had announced that government will come out with a tax dispute resolution scheme (Vivad Se Vishwas) wherein taxpayers will get complete waiver of interest

The Competition Commission of India (CCI) dismissed a complaint filed by two Informants against the Ministry of Railways (MoR) and Indian Railway Catering and Tourism Corporation Limited (IRCTC, a subsidiary of the Indian Railways) (collectively, the OPs), which alleged that they abused the

The first full union budget of the re-elected Narendra Modi Government presented on 1 February 2020 (Budget 2020) was a highly anticipated one from the perspective of the Indian fund management industry, with the industry expecting

The Securities and Exchange Board of India (SEBI) has recently passed an ad interim ex parte order impounding notional gains made and losses avoided by, amongst others, promoters of PC Jeweller Limited (Company) for having executed trades based on unpublished price sensitive information of

CUSTOMS LAW

Proposed legislative changes in the Customs Act, 1962

The tax rates and income slabs under the Income-tax Act, 1961 (IT Act) remain the same, other than the following proposed changes.

In a landmark decision, the Gujarat High Court vide its order dated 23 January 2020, in Mohit Minerals Private Limited v Union of India and Another [Special Civil Application No 726 of 2018] and other connected petitions, has struck down two notifications: (i) No.

It’s that time of the year again, when the fiscal deficit and taxation regimes begin to feature in dinner table conversations around the country. The Union Budget is just around the corner; and with the economy slowing down, taxpayers are looking to the government for some relief.

Extant labour laws in India only benefit permanent and fixed term employees, and do not confer any benefits to such gig workers.

While the move to allow 100 percent FDI in insurance intermediaries is a welcome move, the requirements under the Intermediaries Regulations and Dividend Guidelines for FIIs are likely to be viewed as onerous by foreign investors.

In a few days, our Finance Minister (FM) will be presenting the Union Budget in the backdrop of not just a slowdown in the economy, but also falling direct tax revenues compared to FY 2019 (if collection trends till 15 January were to continue), with the latter being a first in the past 20

There has been a lot of ambiguity on whether a foreign portfolio investor (FPI) registered under the SEBI (Foreign Portfolio Investor) Regulations 2019 (FPI Regulations) can make investments in unlisted equity shares of an Indian company under the foreign direct investment (FDI) route speci

The Reserve Bank of India (RBI) revised the features of investment by Foreign Portfolio Investors (FPIs) in India vide two circulars published on 22 January 2020, namely the circular on FPI investment in debt (FPI Investment Circular) and Voluntary Retention Route’ (VRR) for FPIs i

India’s capital markets regulator, the Securities and Exchange Board of India (SEBI) has issued a circular dated 17 January 2020 introducing “Guidelines for rights issue of units by a listed Infrastructure Investment Trusts (InvIT)” (Guidelines).

The past year witnessed a number of significant developments related to environmental law and policy in India. These included crucial judgements and orders being passed by the courts especially the Supreme Court of India and the National Green Tribunal.

On 17 January 2020, the Central Government of India issued a notification (Notification) declaring the United Arab Emirates (UAE) a ‘reciprocating territory’ for the purpose of Section 44A of the Code of Civil Procedure 1908 (CPC).

In Marico Limited v Abhijeet Bhansali (Notice of Motion No 1094 of 2019 in COMIP No.

The Government of India, in September 2019, began the process of liberalising the long-standing restrictions imposed on mining activities in India with permitting 100% foreign direct investment (FDI) in entities engaged in coal mining activities for sale of coal.

One hopes that with the increasing technological advancements and proof of concept/sandbox driven approach, the regulators will be forthcoming in recognising innovation.

With a view to streamline the process and reduce the time taken for rights issues undertaken by listed companies, the Securities and Exchange Board of India (SEBI) in its board meeting held on 20 November 2019, decided to amend the regulatory requirements applicable to rights issues by listed com

In the recent ruling (dated 31 December 2019) of ITO v APJ Construction Private Limited (ITA No.

Detection and prosecution of insider trading activities remain a challenge due their clandestine nature.

There have been several instances of Internet shutdown across the country, which has put the right of freedom of speech and expression in jeopardy. 

On 7 December 2019, the Government of Karnataka (Government) issued a notification (Notification) amending the Karnataka Industrial Employment (Standing Orders) Rules 1961 (Rules).

Prompted by the ballooning relevance of digital commerce, the Competition Commission of India (CCI) commenced a market study on e-commerce (Study) in April 2019.  The CCI published its findings on 8 January 2019, in its report titled “Market Study on E-commerce in India: Key Findings and Observat

Welcome to the first edition of the E-Bulletin (Volume II) brought to you by the Employment, Labour and Benefits practice group of Khaitan & Co.

In Ferid Allani (Petitioner) v Union of India And Ors (Respondents), the Delhi High Court (Court) directed the Indian patent office to reassess the Petitioner’s patent application in light of the Court’s observations on patentability of computer related inventions.

The honouring of existing contracts by the government is as critical for inflow of new investments as it is for the nation’s energy security.

On 10 December 2019 a three-judge bench of the Supreme Court passed a judgment in BGS SGS SOMA JV v NHPC Ltd,(1) deciding key issues relating to the interpretation of arbitration clauses and the scope of appealable orders under the Arbitration and Conciliation Act 1996.

The goods and services tax (GST) Council met on December 18 after nearly 3 months, only to grapple with many old and new unresolved issues. Such a long gap is not desirable as many key decisions are at stake. 

The present system of stamp duty collection governing securities market transactions had many challenges such as multiple rates for the same instrument, differing rates in states and lack of clarity, often leading to higher transaction costs an

On 27 November 2019, a three-judge Bench of the Hon’ble Supreme Court struck down the newly inserted Section 87 of the Arbitration and Conciliation Act, 1996 as manifestly arbitrary and unconstitutional.

In a recent ruling in Doshi Accounting Services Pvt. Ltd v/s DCIT, (ITA No.

Investors can now structure products that cater to both returns and impact in short term. 
Long-term private debt funding constitutes an obvious and dominant share of these financings.

Mandatory examination could ensure a level of competence, at a time when the law expects them to play a crucial role 

The GST Council (Council) met on 18 December 2019 for the 38th time since the rollout of Goods and Services Tax (GST) regime.

Volume 1 Issue 4 December 2019

On 13 December 2019, the Ministry of New and Renewable Energy, Government of India (MNRE) issued Guidelines for Development of Decentralised Solar Power Plants (Guidelines).

In a recent decision in the case of ING Bewaar Maatschappij I BV (ING BV), as trustees of ING Emerging Market Equity Funds (INGEMEF) v Deputy Commissioner of Income Tax (International Taxation) (Income tax appeal number: 7119/MUM/2014), the Mumbai bench of the Income Tax Appellate Tribunal (ITAT)

The Chennai Bench of the National Company Law Tribunal (NCLT) had sanctioned a merger of Real Image LLP, a limited liability partnership  incorporated under the provisions of the Limited Liability Partnership Act, 2008, together with all its assets and liabilities, rights, title and interest in t

In a recent decision in the case of M/s Direct Media Distribution Ventures Private Limited v Principal Commissioner of Income Tax (ITA No: 2211/Mum/2019), the Mumbai bench of the Income Tax Appellate Tribunal

Under the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014 and relevant guidelines and circulars issued thereunder (REIT Regulations), a real estate investment trust (REIT) is required to list its units o

The Telecom Regulatory Authority of India (TRAI) has issued a pre-consultation paper on ‘Enabling unbundling of different layers through differential licensing’ on 9 December 2019 (PCP).

After a gap of over 15 months, the final draft of the Personal Data Protection Bill, 2019 (Bill) has finally been tabled before the lower house of Parliament.

On 11 December 2019, the Government of India introduced the Code on Social Security, 2019 (Code) in the Lok Sabha. The Code proposes to consolidate the law on social security in India and replace the following extant statutes:

The Private Placement Memorandum ("PPM") for each fund is submitted and reviewed by SEBI prior to granting registration to the fund.

Mergers and Acquisitions (“M&As”) have gained substantial importance in today’s corporate world.

On 10 December 2019, a three-judge bench of the Supreme Court (SC) passed a judgment in BGS SGS SOMA JV v NHPC Ltd deciding key issues relating to interpretation of arbitration clauses and scope of appealable orders under the Arbitrati

The amendment, once effective, promises to be immensely beneficial for companies who often like to structure deals with a leg involving a market purchase.

The Indian Insolvency & Bankruptcy Code, 2016 (IBC) has seen several challenges in recent times. The Indian Government has been proactive in responding to these. In response to the recent set of challenges, the Government intends to implement another round of amendments to the IBC.

On 21 November 2019, a full bench of the Nagpur Bench of the Bombay High Court (Court) in its judgement in Motilal s/o Khamdeo Rokde & Ors v Balkrushna Baliram Lokhande & Ors (Letters Patent Appeal No 177 of 2012), clarified two crucial aspects regarding the maintainability

India’s capital markets regulator, the Securities and Exchange Board of India (SEBI), had on 27 November 2019 introduced the “Guidelines for the Preferential Issue of Units and Institutional Placement of Units by a listed Infrastructure Investment Trust” (2019 Guidelines), applicable to lis

The Central Government, vide notification dated 17 October 2019 had notified the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (NDI Rules) in supersession of the Foreign Exchange Management (Transfer  and Issue of Security by a Person Resident outside India) Regulations, 2017 (Ol

The Securities and Exchange Board of India (SEBI) has recently imposed a monetary penalty on the merchant banker to the open offer (Merchant Banker) made to the public shareholders of Medicamen Biotech Limited (Target Company).

With a move that will mark a further evolution of the comparatively young alternative investment fund (AIF) industry, the Securities and Exchange Board of India (SEBI) released “Consultation Paper on Introduction of Performance Benchmarking and Standardization of Private Placement Memorandum for

The formation of industrial clusters has helped the MSMEs get organised. However, the key to the success of these MSMEs located in industrial clusters is in ensuring that they comply with the applicable environmental norms.

A Division Bench of the Hon’ble Supreme Court of India, comprising Justice Uday Umesh Lalit and Justice Indu Malhotra has, vide judgment dated 26 November 2019 passed in the matter of Perkins Eastman Architects DPC & Another v HSCC (India) Limited, while dealing with Section 11 (6) read with

Various Indian judicial fora, including the Supreme Court, have affirmed that a creditor may proceed against a guarantor on failure of the principal debtor to repay a loan without first exhausting his remedies against the principal debtor.

The National Company Appellate Tribunal, New Delhi (NCLAT) in the recent case of Oswal Greentech v Mr Pankaj Oswal and Ors (Company Appeal (AT) No 410 of 2018) while deciding on the issue of maintainability of a petition alleging oppression and

“Excepting the solitary reason namely difference in sex among the workers, there is no reason or rhyme to treat the women differently, nor it could be held that it is a protective legislation to save the women from exploitation.

The Ministry of Finance on 17 October 2019, released the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (NDI Rules) in supersession of the Foreign Exchange Management (Transfer of Issue of Security by a Person Resident outside India) Regulations, 2017 (TISPRO Regulations) and the

In a recent judgment Sowparnika Projects and Infrastructure Pvt. Ltd. and Ors. v/s ACIT TDS Circle-3(1), Criminal Review Petition No.

It has been an increasing trend over the past few years for co-operative housing societies in Maharashtra to forego appointing a developer and undertaking 'self- redevelopment' of their old and dilapidated buildings.

At present, India does not have an exclusive and comprehensive data protection legislation.

A constitution Bench of the Supreme Court has dealt with questions pertaining to the constitutionality of Part XIV of the Finance Act, 2017 and the Rules framed thereunder.

Taking into account the deepening liquidity crisis in the financial services sector and the resultant failure of some of the biggest non-banking financial companies (NBFCs) in discharging their immediate debt obligations, the India

On 15 November 2019, a three judge bench of the Supreme Court delivered its judgment in the much-anticipated matter of Committee of Creditors of Essar Steel India Limited v. Satish Kumar Gupta and Ors., Civil Appeal No. 8766-67 of 2019.

A recent landmark decision of the Supreme Court reinforces the duty of care and liability of a Hotel for property entrusted to it by guests, customers and visitors. 

On 1 November 2019, the Insurance

Guide to Special Situations and Distressed Investments in India

The Authority for Advance Rulings (AAR) pronounced its ruling on the application of the India Mauritius Double Taxation Avoidance Agreement (DTAA), holding that the disposal by a Mauritian resident of its Indian investment would not be subject to tax in India.

Commercial Papers (CPs) in India are regulated by Reserve Bank of India (RBI) and governed by the RBI directions (RBI CP Directions) which lays down the eligibility requirements, disclosure norms, rating and documentation procedures.

The Reserve Bank of India (RBI) issued a long pending clarification on permissibility of bank lending to Infrastructure Investment Trusts (InvITs) vide Circular no. RBI/2019-20/83 DBR.No.BP.BC.20/08.12.014/2019-20 dated 14 October 2019 (RBI Circular).

As we know, cheque(s) has historically (and continues to be) one of the most popular negotiable instruments in India. In its historical avatar, a cheque was called by various names during different eras.

The Hon’ble Supreme Court of India (Supreme Court), vide its recent judgment of Vinubhai Haribhai and Others v The State of Gujarat and Another dated 16 October 2019, (Vinubhai Case) arising out of a criminal appeal against an order of the High Court of Gujarat (High Cou

On 31 October 2019, a specialised panel constituted by the World Trade Organisation (WTO) released a report recommending the withdrawal of several export promotion schemes which are integral to India’s foreign trade policy.

Welcome to the fourth edition of the E-Bulletin (Volume I) brought to you by the Employment, Labour and Benefits practice group of Khaitan & Co.

The manner of filing a complaint has also been eased to permit the consumers to file a complaint even electronically. The 2019 Act is being hailed by some as an all-inclusive legal regime that will help bolster consumer confidence.

In a step towards implementation of the recently notified Code on Wages, 2019 (Wages Code) which awaits a notification to be brought into force, the Ministry of Labour and Employment the draft Code on Wages (Central) Rules, 2019 (Draft Central Rules) on 1 November 2019.

By way of a notification published on 30 October 2019 (Amendment), the Competition Commission of India (CCI) has yet again amended the Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011 (Combination Regulations).

The Telecom Regulatory Authority of India (TRAI) has issued its recommendations relating to the regulatory terms and conditions for ‘other service providers’ (OSPs) on 21 October 2019.

On 14 October 2019, the Government of Andhra Pradesh (Government) notified and brought into effect the Andhra Pradesh Employment of Local Candidates in the Industries / Factories Rules, 2019 (

Consumer and competition law share the goal of protecting consumers from distortions and misadventures in the marketplace. The means to achieve this common end, however, are markedly different.

With effect from 15 October 2015, amendments in terms of sections 139, section 143(i) and section 144 of the Finance Act, 2015 (Finance Act) which amend the Foreign Exchange Management Act, 1999 (FEMA) have been notified.

The Bombay High Court, in its judgment dated 6 September 2019 in Earnest Business Services Pvt Ltd (Petitioner/Applicant) v the Government of the State of Israel (Respondent), has inter alia held that parties to a dispute can agree on appointment of an arbitrator without filing an application und

The Arbitration and Conciliation (Amendment) Act, 2019 (2019 Amendment Act), as a bill, was passed by the lower house of Parliament (Lok Sabha) on 1 August 2019and passed by the upper house of Parliament (Rajya Sabha) on 18 July 2019.

India's corporate and regulatory environment has traditionally not been conducive to shareholder activism. First, there is little separation of ownership and management in India.

With the introduction of Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations 2019 (FPI Regulations 2019), the regulator has renewed its commitment towards bolstering development of the International Financial Servic

Guided by established principles of Common Law that view damages as the presumptive remedy and specific performance as an alternate, discretionary remedy, the Specific Relief Act 19631 ('Act') has sought to protect civil and contractual rights in the event of breach of contract.

The Ministry of Home Affairs has notified the Foreign Contribution (Regulation) (Second Amendment) Rules on 16 September 2019 (“Amendment Rules”) amending the Foreign Contribution (Regulation) Rules, 2011 (“FCRA Rules”) under the Foreign Contributions (Regulation) Act, 2010 (“FCRA”).

The Companies Act 2013 (the 2013 Act) provides for a statutory cause of action to any person who has subscribed for securities of a company offered through a prospectus and has suffered losses by relying on any statement in the prospectus that was untrue or misleading or owing to omission of any

Over the last 12 months, the market has witnessed myriad developments in relation to the insolvency and Bankruptcy Code 2016 ("IBC"), the deterioration of the financial services sector in India and the compression of credit from traditional banking sources and continued high leve

Post the Circular CIR/ IMD/ FPIC/ CIR/ P/ 2018 titled ‘Know Your Client Requirements for Foreign Portfolio Investors (FPIs)’ issued by Securities Exchange Board of India (SEBI) dated 10 April 2018 (SEBI Circular), there was widespread confusion around the eligibility of Resident Indians

At first glance,  the legal framework governing Indian public M&A transactions may appear to be similar to that in England and Wales. The company law foundation is similar to that in England and Wales.

We have been witnessing poor auto sales this year primarily due to the transition from BS-IV to BS-VI but it would not be incorrect to state that the number of vehicles has almost doubled in the last decade and the sector has witnessed a 10% growth rate. 

We have been witnessing poor auto sales this year primarily due to the transition from BS-IV to BS-VI but it would not be incorrect to state that the number of vehicles has almost doubled in the last decade and the sector has witnessed a 10% growth rate. 

Under the Electricity Act, generation of energy is a delicensed activity.

India’s anti-trust watchdog, the Competition Commission of India (CCI), in August announced a “green channel” to expedite approval of mergers and acquisitions (M&As) that fall into certain categories.

We have been witnessing poor auto sales this year primarily due to the transition from BS-IV to BS-VI but it would not be incorrect to state that the number of vehicles has almost doubled in the last decade and the sector has witnessed a 10% growth rate. 

The Constitution of India specifies the distribution of executive and legislative powers between the Union and States.

While the Electricity Act does not provide a definition of renewable energy, there are other legislation and policies at both central and state level providing the definition of renewable energy sources.

Hong Kong Authorities should consider putting in place an appropriate mechanism that would allow litigation funding and at the same time prevent any abuse of its use; otherwise, Hong Kong could lack ‘sex appeal’ as hub for international commercial disputes.

The Central Board of Direct Taxes (CBDT) – the apex body for administration of direct taxes in India – has issued a circular (Circular No.

The Securities and Exchange Board of India has gone the whole hog in revamping the FPI regime with the introduction of the Foreign Portfolio Investor Regulations, 2019. This followed relief in the form of rollback of the super-rich tax that had spooked foreign portfolio investors (FPIs).

The clarification introduced in the manufacturing sector is expected to give the necessary impetus to the ‘Make in India’ drive of the government. 

On 7 June 2019, the Reserve Bank of India (RBI) issued a new prudential framework for resolution of stressed assets (7 June Circular) which, amongst others, directs banks to take  a preliminary review of borrowers within 30 Days of default. 

Recently, the Delhi Bench of the Income Tax Appellate Tribunal (Tribunal) held that the Liaison Office (LO) of Hitachi Technologies Singapore Pte Limited (Hitachi) constituted a Permanent Establishment (PE) of Hitachi in India for the financial years (1 April to 31 March) 2001-02 to 2006-07.

In a recent decision in the case of M/s Golden Bella Holdings Ltd v Deputy Commissioner of Income Tax (International Taxation), Income tax appeal number: 6958/MUM/2017, the Mumbai bench of Income Tax Appellate Tribunal (ITAT) examined the concept of ‘beneficial ownership’ in relation to

In furtherance of its widely promoted objective of ensuring efficiency and transparency in tax administration, the Government has notified the much-awaited E-assessment Scheme, 2019 vide Notification No. 61/2019 (Scheme) to provide a framework for conducting assessment proceedings by:

Litigation funding, often referred to as third party funding (TPF), has become fairly commonplace in jurisdictions such as United Kingdom, the United States and Singapore.

Consider a typical supply chain- in the market for supply and sale of plastic bottles, for example, the manufacture procures raw materials from upstream suppliers to manufacture bottles of various colors and sizes.

On 28 August 2019, the government announced critical changes liberalising foreign direct investment (FDI) norms in: (a) single-brand retail trading (SBRT) (b) contract manufacturing (c) uploading / streaming of news and current affairs through digital media and (d) coal mining.

Estate & Succession Planning

Estate & Succession Planning

From having admitted the slowdown in the economy to announcing back to back measures to stabilise and improve the growth, the Government of India today defied all the criticism by announcing big bang tax reforms vide Taxation Laws (Amendment) Ordinance dated 20 September 2019 promulgated by the H

In a recent judgment [ITO(TDS)-2(3) v/s M.S.Shah Developers Private Limited and Ors., CC No.

The Patent (Amendment) Rules, 2019 (Revised Rules) have come into force from 17 September 2019. The key highlights of the Revised Rules are broadly set out below:

Cigarette smoking is injurious to health. Thanks to the statutory warnings on television, movie-theatres and even the cigarette cartons, we all know this.

In a recent case, The Deputy Commissioner of Income-tax v TCS E-Serve International Limited dated 28 August 2019, the Mumbai Bench of the Income Tax Appellate Tribunal (Tribunal) has allowed a demerged company to continue to avail Minimum Alternate Tax (MAT) credit pertaining to its demerged SEZ

The Delhi High Court recently ruled that a home buyer is allowed to approach the NCDRC and RERA concurrently. Our legal experts throw light on the implications of the judgment.

In line with the recent assurances from the Finance Minister of India regarding ending the tax harassment, the Central Board of Direct Taxes (CBDT) which is the apex body for administration of direct tax in India, has issued 2 circulars.

In the recent case of Domino Printing Science Plc., In Re (AAR 1290 of 2012 decided on 23 August 2019), the Authority for Advance Rulings (AAR), ruled that shareholders of a company are liable to capital gains tax upon the conversion of a company to a Limited Liability Partnership (LLP) as the co

In Pam Developments Private Ltd v State of West Bengal the Supreme Court considered whether an unconditional stay can be granted under Section 36 of the Arbitration and Conciliation Act 1996 when the applicant is the government.

Ezeego initiated criminal proceedings for trademark infringement against Make My Trip due to the registration of domain names similar to the EZEEGO mark

The Supreme Court, in its recent decision in Ravinder Kaur Grewal & Ors. v. Manjit Kaur & Ors[1]., has clarified that a person claiming title by virtue of adverse possession can maintain a suit for declaration of title.

The current Andhra Pradesh regime seems to be poorly advised in going about economising power in the state.

The current Andhra Pradesh regime seems to be poorly advised in going about economising power in the state.

Green energy is critical towards ensuring a better quality of life by bringing down pollution, curbing global warming

Welcome to the second edition of the E-Bulletin (Volume I) brought to you by the Employment, Labour and Benefits practice group of Khaitan & Co.

Latest in the series of attempts by the Indian Government to promote India as an arbitration-friendly destination after the New Delhi International Arbitration Centre Act, 2019 is the Arbitration and Conciliation (Amendment) Act, 2019 (Amendmen

On 28 August 2019, the Employees’ Provident Fund Organization (EPFO) issued a notice (EPF Notice) in relation to inquiries initiated / sought to be initiated by authorities under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act) pursuant to the judgment of the Suprem

On 28 August 2019, the Employees’ Provident Fund Organization (EPFO) issued a notice (EPF Notice) in relation to inquiries initiated / sought to be initiated by authorities under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act) pursuant to the judgment of the Suprem

The bench of Hon’ble Justices Uday Umesh Lalit and Vineet Saran of the Hon’ble Supreme Court of India (Supreme Court), vide judgement dated 22 August 2019 in Air India Express Limited and others v Captain Gurdarshan Kaur Sandhu [Civil Appeal Number 6567 of 2019], examined whether an employee can

On 28 August 2019, the Employees’ Provident Fund Organization (EPFO) issued a notice (EPF Notice) in relation to inquiries initiated / sought to be initiated by authorities under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act) pursuant to the judgment of the Suprem

The Competition Commission of India (CCI) approved the acquisition of 66.15% of the total equity shareholding of Mindtree Limited (Mindtree) by Larsen & Toubro Limited (L&T).

The single Judge of the Delhi High Court (Court), Justice Pratibha Singh, has recently passed a detailed order on the role, responsibility and accountability of intermediaries and held that the e-commerce platforms are bound by the Model Framework for Guidelines on Direct Selling 2016 (Direct Sel

The Union Cabinet on 28 August 2019 has issued a press release proposing some significant changes to the Foreign Direct Investment (FDI) policy of the Government of India, specifically relating to 4 (four) sectors as detailed below.

The powers conferred upon GST commissioners to make arrests in cases involving fake GST invoices cannot be disputed. However, the way these arrest provisions have been incorporated under the GST law is certainly amenable to a constitutional challenge.

This is further to our Ergo Update dated 5 July 2019 regarding Securities and Exchange Board of India’s (SEBI) in-principal approval to the framework for enabling initial public offer of ordinary equity shares by tech companies having equity shares with superior voting rights (SR Shares).

In a bout of relief to foreign portfolio investors (FPIs), the Securities and Exchange of India (SEBI) in its board meeting on 21 August 2019 (Board Meeting) has given its nod of approval to the recommendations made by the HR Khan Committee report published on 24 May 2019 (Report) (Please see our

The trial court issued an interim injunction against UC Surendranath after Mambally's Bakery filed a suit to restrain him from using the MAMBALLY's BAKERY mark

The Karnataka Government (Government) vide its notification dated 8 August 2019 notified the Karnataka Maternity Benefit (Amendment) Rules, 2019 (Amendment Rules).

In State Bank of India v Moser Baer Karamchari Union [Company Appeal (AT) (Insolvency) Number 396 of 2019] (Moser Baer), the National Company Law Appellate Tribunal, New Delhi (NCLAT), ruled on the scope of ‘workmen’s dues’ under Section 53 of the Insolvency and Bankruptcy Code, 2016 (IBC) from t

Under Indian law, shares of an unlisted company could hitherto either be held in physical form (i.e., represented by letters of allotment / share certificates issued against such shares) or in dematerialised form (i.e., by opening an account with a depository participant, "Demat Account").<

Following through on India's commitment to align its regulatory framework with the recommendations of the Financial Action Task Force, to check the misuse of multi-layered corporate entities for money laundering and other illegal activities, the Ministry of Corporate Affairs (MCA), vide the

In a much-awaited move, the Government of India (Government) vide press release dated 24 August 2019 (Press Release), announced withdrawal of the enhanced surcharge rates on income arising from the transfer of certain investments made in the Indian capital markets.

The Indian financial services sector (particularly the non-banking financial services sector) has been in the front-page news since October 2018.

The Ministry of Corporate Affairs (MCA) vide its circular dated 21 August 2019 (Ref: General Circular No.

The Ministry of Corporate Affairs vide notification dated 16 August 2019, notified the Companies (Share Capital and Debentures) Amendment Rules 2019 (Amendment Rules). The Amendment Rules have amended the Companies (Share Capital and Debentures) Rules, 2014 (Original Rules).

On 31 July 2019, the Companies (Amendment) Act, 2019 (Amendment Act) received assent of the President of India.

In a move to consolidate the law relating to occupational safety and health, welfare facilities and working conditions in relation to employees and workers, the Code on Occupational Safety, Health and Working Conditions, 2019 (OSH Code) was introduced in the Lok Sabha on 23 July 2019.

The Securities and Exchange Board of India (SEBI), vide its circular SEBI/HO/IFSC/CIR/P/2019/91 dated 9 August 2019 (Circular) harmonized the provisions governing investments by alternative investment funds (AIFs) incorporated in International Financial Services Centre (IFSC) wi

The Delhi High Court has issued directions to facilitate the immediate functioning of the IPAB

The key highlights of the legislation and its potential impact have been attempted to be catalogued.

The Digital Age has ushered in a new era of commerce and digital branding, as well as a new set of customer expectations. Digitisation has provided easy access, a large variety of choice, convenient payment mechanisms, improved services and shopping as per convenience.

Recent times have seen a spate of online will-making websites and even mobile applications becoming popular.

It is explicitly provided in the IT Act 2000 that it shall not apply to wills, trusts and other testamentary dispositions.

On 20 June 2019, the National Company Law Appellate Tribunal (NCLAT), in A. J.

On 9 August 2019, a three-judge bench headed by Justice Rohinton F Nariman of the Supreme Court of India (“Supreme Court”) upheld the constitutional validity of the amendment to the Insolvency and Bankruptcy Code, 2016 (“Code”) confirming the status of ‘financial creditors’ given to the allottees

Climate Change is for real - at least by now we all seem reasonably convinced it is. With rising global temperatures and the frequency of natural disasters, there is  a growing need to address climate change through effective revision and mitigation measures. 

The Urban Land (Ceiling and Regulation) Act, 1976 (ULC Act) was enacted to prevent concentration of urban properties in the hands of a few and to ensure equitable distribution/utilization of urban vacant lands.

The Central Board of Direct Taxes – the apex body for direct tax administration in India (CBDT), has issued a clarification dated 9 August 2019 (Clarification) that provides further clarity with respect to ‘angel tax’ le

The Competition Commission of India (CCI) has constantly reformed the merger control regulations from 2011. In 2018, the CCI took it upon itself to further streamline the merger control regime to increase the ease of doing business in India.

The Supreme Court, in its much awaited judgment, has upheld the status of home buyers as financial creditors under the Insolvency and Bankruptcy Code 2016.

In this roundtable discussion, we explore the current transfer pricing landscape in Egypt, India and United States.