The Internet has been changing our lives at an unprecedented pace. In addition to E-shopping and food delivery, Internet medical services have become a significant part of our life. People start trying online diagnosis services when they feel sick; when they visit a doctor, they make online appointments beforehand; people also buy pharmaceuticals online as opposed to from brick and mortar pharmacies. Read more…
On 17th March 2020, the Government has introduced the Companies (Amendment) Bill, 2020 (“Bill”) in the Lok Sabha to further amend Companies Act, 2013 (“Act”) proposing various changes pertaining to removing criminality from most of the offences under the Act and offering simpler penalty regime for businesses as well as paving way for direct overseas listing of Indian companies.
The key amendments introduced in the Bill, inter alia, are listed below:
Anti-corruption enforcement has never been more aggressive or coordinated. In light of this situation, multinational corporations have continued to emphasize investment in strong anti-corruption compliance programs. Around the globe, jurisdictions have taken steps to strengthen their anti-corruption legislative framework by requiring organizations and businesses to comply with internal policies and local regulations.
Anti-corruption enforcement has never been more aggressive or coordinated. In light of this current situation, multinational corporations have continued to emphasize investment in strong anti-corruption compliance programs. In the Asia-Pacific region, jurisdictions have taken strong steps to reinforce their anti-corruption legislative framework by requiring organizations and businesses to comply with internal policies and local regulations.
The crypto-currency platforms have been subjected to various governmental actions in the past without the virtual currencies being banned in India. In a huge relief to the crypto-currency exchanges and platforms, the Supreme Court of India in its recent judgment in the matter of Internet and Mobile Association of India vs. Reserve Bank of India [Writ Petition (Civil) No. 528 of 2018], set aside the Reserve Bank of India’s (RBI) circular restricting the dealing in virtual currencies and/or operating the virtual currency exchange in India.
RBI issued a ‘Statement on Developmental and Regulatory Policies’ on April 5, 2018 (RBI Statement), which inter alia directed the entities regulated by the RBI (a) not to deal with or provide services to any individual or business entities dealing with or settling virtual currencies; and (b) to exit the relationship, in case such relationship exists, with such individuals/business entities, dealing with or settling virtual currencies.
On Thursday, both houses of Parliament passed the Insolvency and Bankruptcy Code (Amendment) Bill, 2020 (“Bill”) thereby repealing the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2019 (“Ordinance”). All the amendments made prior in the Ordinance have been captured verbatim by the Bill. The Bill will now require the President’s assent to become a law in the form of the Insolvency and Bankruptcy Code (Amendment) Act, 2020 (“Act”).
Some of the salient features of the Bill are enumerated herein below:
UNDERTAKING OF CHARITABLE ACTIVITIES NOT MANDATORY FOR NEW TRUST PRIOR TO SEEKING TAX EXEMPTION UNDER THE INCOME TAX ACT,1961
Exemption from taxation on income generated by charitable institutions is a fundamental draw for many institutions to be incorporated as a charitable institution. Sections 11 to 13 of the Income Tax Act, 1961 (“IT Act”) govern the exclusion of income derived by a charitable institution from property held under trust for charitable or religious purposes to the extent such purposes are applied in India. Similarly, Section 80G of the IT Act allows for deduction of donations made by a person to a charitable institution from the computation of the total income of such person. To claim exemption of income under Sections 11 to 13 of the IT Act, the charitable institution needs to be registered under Section 12AA1 of the IT Act. Additionally, the charitable institution also needs to be registered under Section 80G of the IT Act for its donors to avail deductions.
Judgment: Gujarat Urja Vikas Nigam Limited vs Nitash Co-generation Private Limited
Forum: National Company Law Tribunal, Mumbai Bench (“NCLT”).
Act/Law: The Insolvency and Bankruptcy Code, 2016 (“Code”).
Ratio: Claim for “Liquidated Damages” cannot trigger insolvency proceedings, unless adjudicated upon by a court of law. Proceedings under the Code are not for ascertaining or crystallizing the quantum of damages.