pol and legal env of india

8/2/2019 Pol and Legal Env of India

1/101

POLITICAL AND LEGALENVIRONMENTOF INDIATHE Changingdimension AND ITSIMPACT ON BUSINESS

PRESENTED BY:SIMRAT HUNDAL

SMITA SHARMASONAM CHAWLA

SUDHIR


2/101

POLITICAL LEGAL ENVIRONMENTIt refers to the influence exerted by

the three political institutions - The Legislature

The Executive

The Judiciary

in shaping, directing, developing and

controlling business activities.


3/101

There is today no country with a stable and

honest Government that does not have or has

not had a reasonably satisfactory state ofeconomic progress.

- John Kenneth Galbraith


4/101

TAXES

VOLUNTARYPROGRAMMES

INFORMATION

CONTRACTS

GOVT. SERVICE

POLITICAL

ACTIVITY

LAW AND ORDER

INSPECTION AND

LICENCES

MONEY AND CREDIT

COMPETITION

GROWTH

TARIFFS AND QUOTAS

INFRASTRUCTURE

INFORMATION

SMALL INDUSTRIES

TECHNOLOGY


5/101

POLITICAL ENVIRONMENT IN INDIA With a population over 1 billion, India is the largest democracy in

the world.

It is a federal republic, consisting of 28 states and 7 unionterritories.

The Indian Parliament consists of two houses: Upper House orRajya Sabha and Lower House or Lok Sabha.

250 members are elected to the Rajya Sabha. Of the 250, 238members represent states and union territories.The Presidentnominates the remaining 12 members.

On the whole, 545 members are elected to the Lok Sabha. Theusual term of the Lok Sabha is five years.

Major power centers in India are: Congress (I) party, BharatiyaJanata Party, Communist parties, Labor, and Military.


6/101

COALITIONGOVERNMENTS AND ECONOMICREFORMS


7/101

CONGRESS (June 1991-May1996)

Unleashed economic liberalization Abolition of license quota raj

Rationalization of import duties and tariffs

Streamlining procedures for FDI approvals

Encouraging foreign direct investment

Opening up of Indias equity markets to

investment by foreign institutionalinvestors

GDP(CAGR%) :- 6.4%


8/101

UNITED FRONT (June

1996-March 1998)Tax reforms

Voluntary Disclosureof Income Schemes

GDP(CAGR%) :- 5.1%


9/101

NDA (March 1998-May 2004)

Telecom Reforms

Financial Sector reforms Power Sector reforms

National Highway DevelopmentProgram (NHDP)

PPP for infrastructure development Disinvestment in select PSUs

GDP(CAGR%) :- 6.2%


10/101

UPA (May 2004-April 2009)

Administrative Reform

Implementation of VAT The move to implement Goods and Services

Tax (GST) from March 2010

Power Sector Reforms

NREGA

SEZ notification to boost export intensiveindustries

Turnaround in the financial health of IndianRailways

GDP(CAGR%) :- 8.2%


11/101

UPA (May 2009-present)

Tax reforms

Financial reforms Peoples ownership of PSUs

FDI regime simplified

Introduction of Companies Bill,2009

Poverty eradication goal by 2014-15 Strengthening transparency and public

accountability

GDP(CAGR%) :- 7.2%


12/101

TOP 5 STATES IN TERMS OF SHARE

IN INDIAS GDP

1. Maharashtra

2. Uttar Pradesh

3. Andhra Pradesh 40% of Indias4. West Bengal GDP

5. Gujarat


13/101

[video]
http://gujarat.flv/http://gujarat.flv/


14/101

INDUSTRIAL POLICYOFINDIA


15/101

The term Industrial Policy refers to the

governments policy towards industries-their

establishment, functioning, growth andmanagement.

The policy indicates the respective areas of

the large, medium and small-scale sectors.

The industrial development of a country is

shaped, guided, fostered, regulated and

controlled by its industrial policy. No legal sanction


16/101

RATIONALE Correct the imbalances in the development of

industries

Direct the flow of scarce resources

Prevent the wasteful use of scarce resources

Empower the government

Demarcate areas among the public, privateand joint sectors of the economy.

Prevent the formation of monopolies

Give guidelines for importing foreign capital


17/101

INDUSTRIAL POLICIES Industrial policy resolution of 1948 Industrial policy resolution of1956

Industrial policy statement of 1973



The New Industrial policy of 1991


18/101

INDUSTRIAL POLICY 1948Issued by government of India on April 6, 1948

Laid stress on role of state in development of industry

Main features

Acceptance of the dual sectors : public and private

Division of industries1. Industries where state had a monopoly

2. Mixed sector

3. Field of government control

4. Field of private enterprise Role of small and cottage industries

Role of foreign capital was recognized


19/101

INDUSTRIAL POLICY 1956Issued on April 30, 1956

Objectives To accelerate the rate of economic growth and to

speed up industrialization

To expand the public sector

To prevent creation of monopolies

To reduce existing disparities of income and wealth

To build up a large and growing private sector

To expand the village, cottage and small scaleindustries

To achieve balanced industrial development


20/101

The Industrial Policy Resolution of 1956 gave

the broad policy framework of industrial

development in India.

Classification of industries under 3 heads

1. Schedule A exclusive responsibility of the state

(17 industries)

2. Schedule B progressively state owned

(12 industries)

3. Schedule C private sector


21/101

INDUSTRIAL POLICY 1991Issued by the government of India headed by Mr.

P.V.Narasimha Rao on July 24, 1991.Objectives

Encouragement to Indian entrepreneurship

promotion of productivity and employmentgeneration

Development of indigenous technology

Incentives for industrialization of backward areas

Enhanced support to small-scale sector Protect the interests of workers

To link Indian economy to global market


22/101

Dimensions

Abolition of Industrial Licensing

Foreign Investment

Foreign Technology Agreements

Public Sector Policy

MRTP Act

Exclusive small sector policy


23/101

INDUSTRIAL POLICY 2009Main features

Objectives of the Industrial Policy of the Government are to maintain a sustained growth in productivity;

to enhance gainful employment;

to achieve optimal utilisation of human resources;

to attain international competitiveness and to transform India into a major partner and player in the

global arena.

Policy focus is on

Deregulating Indian industry;

Allowing the industry freedom and flexibility in respondingto market forces and

Providing a policy regime that facilitates and fosters growthof Indian industry.


24/101

Policy measures

Liberalisation of Industrial Licensing Policy

Six industries under compulsory licensing

Three industries reserved for public sector

Introduction of Industrial Entrepreneurs

Memorandum(IEM)

Industries not requiring compulsory licensing are

to file an Industrial Entrepreneurs Memorandum

(IEM) to the Secretariat for Industrial Assistance(SIA)


25/101

Contd

Liberalisation of the Locational Policy No industrial approval required from the Government

for locations not falling within 25 kms of theperiphery of cities having a population of more thanone million

Non-polluting industries such as electronics,

computer software and printing can be located within25 kms of the periphery of cities with more than onemillion population.

Policy for Small Scale Industries

industrial undertakings with an investment uptorupees one crore are within the small scale andancillary sector

21 items reserved for manufacture in the small scalesector


26/101

Non-Resident Indians Scheme The general policy and facilities for Foreign Direct

Investment as available to foreign investors/company are

fully applicable to NRIs as well

Electronic Hardware Technology Park

(EHTP)/Software Technology Park (STP) scheme For building up strong electronics industry and with a view

to enhancing export

the inputs are allowed to be procured free of duties

Policy for Foreign Direct Investment (FDI)

liberal and transparent foreign investment regime wheremost activities are opened to foreign investment on

automatic route without any limit on the extent of foreign

ownership


27/101

Monetary Policy


28/101

Monetary policy determines the supply of currency in the

economy. Through it the RBI targets a key set of indicators

to ensure price stability in the economy.

Through the supply of money, monetary policy regulates:

Interest rates

Inflation.


29/101

The monetary policy stance for 2009-10 has been to maintain

a monetary and interest rate regime consistent with pricestability and financial stability, and supportive of the growth

process.

Cash reserve ratio: 5.75 % Reverse Repo rate: 3.25 %

Repo rate: 4.75 %

Statutory Liquidity ratio: 25 %


30/101

Fiscal Policy


31/101

Fiscal policy is the statement of governments source ofincome and its expenditure.

It is concerned with raising revenues and deciding on thelevel and pattern of expenditure. Fiscal policy influences thedecisive forces of economics- demand, supply, disposableincome of the people, savings rate etc. Fiscal policyoperates through budget.

Budget is an estimate of government expenditure andrevenue for the ensuing financial year. It is presented toParliament on the last working day of February by theFinance Minister in the name of the President of India.

Ocassionally, in times of financial crisis, an interim budgetmay be introduced later in the year to increase taxation andexpenditure.


32/101

Budget 2010-2011

The tax break for IT industry has not been extended.(expires inMar 2011)

Rise in MAT( minimum alternative tax) to 18% will increase

tax liability for leading infra ,IT and telecom companies

including Bharti Airtel, TCS, Idea Cellular. Corporate surcharge cut to 7.5%.

Tax holiday to new hotels till they start making profits.

Increased weighted deduction of upto 200% for R&D

companies will shift focus from generic business to high enddrug discovery and innovation.


33/101

The Fiscal Responsibility and Budget

Management (FRBM) Bill

The Committee on Fiscal Responsibility Legislation was

constituted on January 17, 2000 to recommend a draft

legislation on fiscal responsibility of the government.

The Fiscal Responsibility and Budget Management (FRBM)

Bill was introduced in Lok Sabha in December 2000 .

The FRBM bill was passed by the UPA government in July

2004.

Objective :

To legally bind the government with the responsibility to adopt

a prudent fiscal policy and pave the way for accomplishing

macro economic stability.


34/101

The original bill aimed at: Reducing revenue deficit

by an amount equivalent to

0.5% of GDP at end of each

financial year and Reduction in fiscal deficit

by an amount equivalent to

0.5% of GDP at end of each

financial year.

Central government shall

not borrow from the RBI.

Bill seen as undemocratic.

Denied freedom to future

governments in terms of

fiscal management.

Modified version of the billwas passed in 2004.


35/101

The FRBM legislation provides for :

Quarterly review of fiscal situation.

Regulating borrowing from the RBI in a bid to check

borrowing and control expenditure for fiscal discipline.


36/101

Foreign Trade Policy

The Foreign trade/Export Import Policy is announced after

every five years by Ministry of Commerce and Industry.

EXIM policy aims at developing export potential, improving

export performance, encouraging foreign trade and creating

favorable balance of payments position.


37/101

Current status

Exports turned positive inNov. 2009 after 13months of continuous fall,

Registered a growth of 9.4% in Dec. 2009 owing tostrong growth inpharmaceuticals, autocomponents, chemicals,engineering .

SEZs registered a growthof 50% with total exportsof Rs.1,51,785 crores.


38/101

Foreign trade Development and Regulation Act

In India, the main legislation concerning foreign trade is the

Foreign Trade Development and Regulation Act, 1992.

The Act provides for the development and regulation of foreign

trade by facilitating imports into, and augmenting exports fromIndia .

As per the provisions of the Act, the Government :-

may make provisions for facilitating and controlling foreign

trade; may prohibit, restrict and regulate exports and imports, in all

or specified cases as well as subject them to exemptions;


39/101

Cntd.

is authorised to formulate and announce an export and importpolicy and also amend the same from time to time, by

notification in the Official Gazette;

is also authorised to appoint a 'Director General of ForeignTrade' for the purpose of the Act, including formulation and

implementation of the export-import policy.


40/101

Objectives of current FTP 2009-14 (27 AUG 2009) releasedby Ministry of Commerce and Industry are :

to arrest and reverse the declining trend of exports and

to provide additional support especially to those sectors whichhave been hit badly by recession

to achieve an annual export growth of 15% with an annual

export target of US$ 200 billion by March 2011.

The long term policy objective for the Government is todouble Indias share in global trade by 2020.

POLICY MEASURES


41/101

POLICY MEASURES

Promote Brand India through six or more Made in India

shows to be organized across the world every year. Comprehensive Economic Partnership Agreement with

South Korea which will give enhanced market access to Indian

exports.

26 new markets have been added under Focus MarketScheme. These include 16 new markets in Latin America and

10 in Asia-Oceania. The incentives available under Focus

Market Scheme (FMS) has been raised from 2.5% to 3%.

Continuation of the DEPB Scheme upto December 2010. Continuation of income tax benefits for IT industry and

100% export oriented units for one additional year till

31st March 2011.


42/101

The incentive available under Focus Product Scheme(FPS) has been raised from 1.25% to 2%. Products added to

this scheme include agricultural machinery, parts of trailers,

sewing machines, hand tools, garden tools, musical

instruments, clocks and watches.

Introduction of a common simplified application form to

take benefits under FPS, FMS, MLFPS .

Jaipur, Srinagar and Anantnag have been recognised as

Towns of Export Excellence for handicrafts; Kanpur,

Dewas and Ambur have been recognised as Towns of

Export Excellence for leather products; and Malihabad for

horticultural products.


43/101

Review of the FTP on Jan 29, 2010:

112 new products eligible for benefit under FPS including

rubber, plastic, chemicals.

113 new products eligible for benefit of 5 % under special FPS

, include pumps, nuts and bolts, agricultural tools etc. Timor Leste added as new FMS country and 2 new markets ,

China and Japan added under Market Linked Focus Product

Scheme.

Sesame seeds and coconut products added under VisheshKrishi and Gram Udyog Yojana.

EXIM TIMES, JAN 16-31


44/101

FOREIGN EXCHANGEMANAGEMENT ACT.


45/101

FEMA

Passed by the Lok Sabha in 1999 and came into force with effect

from June 2000.

FEMA, which has replaced FERA, had become the need of the

hour since FERA had become incompatible with the pro-liberalisation policies of the government.


46/101

Preamble

An Act to simplify, consolidate and amend the law relating toforeign exchange with the objective of :

1. Facilitating external trade and payments and ,

2. For promoting the orderly development and maintenance of

foreign exchange markets in India.


47/101

PROVISIONS.

Current account transaction.

Any person may sell or draw foreign exchange to or from anauthorised person if such sale or drawl is a current accounttransaction.

Capital account transaction.

Any person may sell or draw foreign exchange to or from anauthorised person for a capital account transaction.

Exports of goods and services.

Every exporters of goods or services shall furnish to the Reserve

Bank details regarding the export value of such goods or services. Contravention

Penalty up to thrice the sum involved in such contravention wheresuch amount is quantifiable, or up to two lac rupees where theamount is not quantifiable.


48/101

*LAND ACQUISITION

* ENVIRONMENT PROTECTION ACT

* MRTP ACT and COMPETITION

ACT,2002
http://images.google.com/imgres?imgurl=http://www.merinews.com/upload/thumbimage/1237328503248_Political%20parties-symbols_t.jpg&imgrefurl=http://www.merinews.com/article/the-pitaji-betaji-politics-of-india/15752048.shtml&usg=__sMYguu9dtHPXOsv-iIfYmgQ256U=&h=148&w=148&sz=2&hl=en&start=7&itbs=1&tbnid=B-i6TgiL88BH7M:&tbnh=95&tbnw=95&prev=/images?q=politics+in+india&hl=en&gbv=2&tbs=isch:1http://images.google.com/imgres?imgurl=https://static.flatworldknowledge.com/sites/all/files/imagecache/book/27984/fwk-collins-fig16_001.jpg&imgrefurl=http://www.flatworldknowledge.com/pub/1.0/exploring-business/28226&usg=__jrHlpWOIw9WJsLLsJ8labepyFkI=&h=274&w=412&sz=15&hl=en&start=4&itbs=1&tbnid=pUqrrz2u3s7shM:&tbnh=83&tbnw=125&prev=/images?q=legal+environment&hl=en&gbv=2&tbs=isch:1


49/101


50/101


51/101

* Also there is a considerable difference between the market

value of the property and the value that the land acquisition

company pays the land owners.
http://images.google.com/imgres?imgurl=http://www.garciagroupla.com/i/Land%20Parcel.jpg&imgrefurl=http://www.garciagroupla.com/developerservices.htm&usg=__LY0qRQPVBQQLR_YJJMTI6iqJwcU=&h=315&w=481&sz=168&hl=en&start=5&itbs=1&tbnid=aIDV9wfM9-5MVM:&tbnh=84&tbnw=129&prev=/images?q=land+acquisition&hl=en&gbv=2&tbs=isch:1


52/101

* The left parties would raise a demand to scrap the archaic land

acquisition act,1894, as it facilitated land acquisition by big

Corporates, who took advantage of the acute distress of farmers,

communist party of India (Marxist) Polit bureau member Brinda

Karat said. (22 Feb, 2010.)

* She said the demand to scrap the law and allot land to the landless

and homeless would be raised at a rally called by left parties in New

Delhi on march 12.
http://images.google.com/imgres?imgurl=http://www.garciagroupla.com/i/Land%20Parcel.jpg&imgrefurl=http://www.garciagroupla.com/developerservices.htm&usg=__LY0qRQPVBQQLR_YJJMTI6iqJwcU=&h=315&w=481&sz=168&hl=en&start=5&itbs=1&tbnid=aIDV9wfM9-5MVM:&tbnh=84&tbnw=129&prev=/images?q=land+acquisition&hl=en&gbv=2&tbs=isch:1http://images.google.com/imgres?imgurl=http://www.wan-press.org/seoul2005/images/upload/posco1.jpg&imgrefurl=http://www.wan-press.org/seoul2005/index.php?zone=02&action=01&usg=__OSevkpGaDXeu6BbHRDMUvYraa3w=&h=170&w=520&sz=31&hl=en&start=8&itbs=1&tbnid=7UxDaCXW3zBVwM:&tbnh=43&tbnw=131&prev=/images?q=posco&hl=en&gbv=2&tbs=isch:1


53/101

* Indias total known reserves are 18 billion tonnes, of which 4.5

billion Tonnes are in Orissa and the state government plans to give 1

billion Tonnes to POSCO of which 400 MT will be exported to Korea.* A community led struggle emerged in the Orissa almost three

years ago (June 2005). The agitation, which continues till today is

against the forcible take over of lands and resources.
http://images.google.com/imgres?imgurl=http://www.wan-press.org/seoul2005/images/upload/posco1.jpg&imgrefurl=http://www.wan-press.org/seoul2005/index.php?zone=02&action=01&usg=__OSevkpGaDXeu6BbHRDMUvYraa3w=&h=170&w=520&sz=31&hl=en&start=8&itbs=1&tbnid=7UxDaCXW3zBVwM:&tbnh=43&tbnw=131&prev=/images?q=posco&hl=en&gbv=2&tbs=isch:1


54/101

* About 50% of the families are also

involved in pisciculture (mostly prawns),

for which the daily earnings per family canrange between Rs. 100-5000 ($2.50-$125).

* In addition, there are many landless

families that depend on ancillary

employment like making baskets for

packaging paan leaves grown in the area.
http://images.google.com/imgres?imgurl=http://www.fws.gov/southeast/planning/images/MollicyFarmsaerialshot.jpg&imgrefurl=http://www.fws.gov/southeast/planning/LandAcquisitionHome.html&usg=__28naWMQVJoNrST1OcDFlKPjaWHQ=&h=1316&w=1200&sz=558&hl=en&start=33&itbs=1&tbnid=o1WBKo87d9DblM:&tbnh=150&tbnw=137&prev=/images?q=land+acquisition&start=18&hl=en&sa=N&gbv=2&ndsp=18&tbs=isch:1


55/101

* Water extraction in these

quantities will also lay additional

stress on an already overloaded

water system, imposing a threat

on water security for the locals,

in addition to concerns about

water pollution.
http://images.google.com/imgres?imgurl=http://images.businessweek.com/ss/07/07/0709_asiatech/image/posco_getty.jpg&imgrefurl=http://images.businessweek.com/ss/07/07/0709_asiatech/source/11.htm&usg=__nLfQlDRTDveEMIxy0g92mIrXCxI=&h=378&w=520&sz=69&hl=en&start=12&itbs=1&tbnid=3nPkDuTcJFP78M:&tbnh=95&tbnw=131&prev=/images?q=posco&hl=en&gbv=2&tbs=isch:1


56/101

* The people of Orissa are not against industry but they want

the company should address the demands of the local people.

Betel vine farmers should be properly compensated.


57/101

* The law has provisions for state taking over

privately held land for public purposes but not

for developing private businesses. The illegalityof the acquisition has been substantially

conceded by the Kolkata high court.
http://images.google.com/imgres?imgurl=http://cache-01.gawkerassets.com/assets/images/12/2008/08/Tata-Nano-safety.jpg&imgrefurl=http://jalopnik.com/tag/tata-nano/&usg=__v46Om5z7qg00fZG5yfXuiJBNw3I=&h=483&w=651&sz=151&hl=en&start=4&itbs=1&tbnid=EVvNn7IMPvNROM:&tbnh=102&tbnw=138&prev=/images?q=nano&hl=en&gbv=2&tbs=isch:1


58/101


59/101

* This lead to the protest ofthe peasants backed by the political

parties of opposition, who thought it would be a good opportunity

to end the communist rule of Bengal.


60/101

* A housing and industrial boom isgathering momentum on the

outskirts ofAhmedabad city.

* Among the industries coming upin Sanand are Avtec Ltd., Durr India

Pvt. Ltd., Rajkot- based Amul

Industries and Bosch India.
http://images.google.com/imgres?imgurl=http://4.bp.blogspot.com/_DOybWWTrpuE/SL-3Wae9sbI/AAAAAAAAAfs/28Ra1z83SRg/s200/nano.jpg&imgrefurl=http://farooquink.blogspot.com/&usg=__BsDo-QmC0xGUvNnyBHfIF-kYKQU=&h=134&w=200&sz=7&hl=en&start=18&itbs=1&tbnid=Y3kgNDmhwda6OM:&tbnh=70&tbnw=104&prev=/images?q=nano+and+land+acquisition&hl=en&gbv=2&tbs=isch:1


61/101

Land acquisition process, in the recent times, has emerged as amajor bottleneck resulting in time lags, cost over runs, businessuncertainties and even shelving of projects by companies.

1. Firstly, the buyer of property is required to establish the chainof title in respect of the property for the preceding 30 years inorder to obtain a clear and marketable title in respect of property.Typically, a title search exercise, for a mid-sized project takes atleast 2-3 months. Thus, establishing the chain oftitle, obviously, istime consuming, expensive and complex resulting in huge projectdelays.

2. Secondly , under the seventh schedule of the Constitution ofIndia, all matters relating to land are a subject matter of the StateGovernment. Accordingly, each state has enacted its own legislationin relation to land, registration, stamping and development thereon.Further, there are often disconnects between the state laws and the

central laws.


62/101


63/101

compensation package tofarmers, rehabilitation of

farmers, fertility of land. Infact,

most often companies prefer to

interact with the farmersthrough the Government as

intermediary or other

middlemen and avoid direct

interaction with the locals.
http://images.google.com/imgres?imgurl=http://www.propertyinvesting.net/cgi-script/csNews/image_upload/specialreports_2edb.Luxemburg%20Forest.jpg&imgrefurl=http://www.propertyinvesting.net/cgi-script/csNews/csNews.cgi?database=specialreports.db78&command=viewonex&usg=__6oVvbTcQ0MDdZtwnI7P3dJu7-CU=&h=239&w=599&sz=41&hl=en&start=9&itbs=1&tbnid=90AwEuxZma2zpM:&tbnh=54&tbnw=135&prev=/images?q=land+acquisition&hl=en&gbv=2&tbs=isch:1


64/101


65/101

* In this Act,

Environment includes water , air and land and the interrelationship

which exists among and between water, air and land, and human

beings, other living creatures, plants, micro-organism and property.

* Environmental pollutant means any solid, liquid or gaseous

substance present in such concentrations as may be, or tend to be

injurious to environment.


66/101

offence was committed, was directly in charge

of, and was responsible to, the company for the

conduct of the business of the company, as well

as the company, shall be deemed to be guilty of

the offence and shall be liable to be proceeded

against and punished accordingly.
http://images.google.com/imgres?imgurl=http://www.wondercliparts.com/holidays/environment_day/environment_day_graphics_02.gif&imgrefurl=http://www.wondercliparts.com/holidays/environment_day/environment_day_clipart.html&usg=__HB99bJl-dY4RgfuH7mIemasVzUo=&h=450&w=450&sz=23&hl=en&start=14&itbs=1&tbnid=4zSGWE8jsm-ZIM:&tbnh=127&tbnw=127&prev=/images?q=environment&hl=en&gbv=2&tbs=isch:1http://images.google.com/imgres?imgurl=http://www.wondercliparts.com/holidays/environment_day/environment_day_graphics_02.gif&imgrefurl=http://www.wondercliparts.com/holidays/environment_day/environment_day_clipart.html&usg=__HB99bJl-dY4RgfuH7mIemasVzUo=&h=450&w=450&sz=23&hl=en&start=14&itbs=1&tbnid=4zSGWE8jsm-ZIM:&tbnh=127&tbnw=127&prev=/images?q=environment&hl=en&gbv=2&tbs=isch:1http://images.google.com/imgres?imgurl=http://www.wondercliparts.com/holidays/environment_day/environment_day_graphics_02.gif&imgrefurl=http://www.wondercliparts.com/holidays/environment_day/environment_day_clipart.html&usg=__HB99bJl-dY4RgfuH7mIemasVzUo=&h=450&w=450&sz=23&hl=en&start=14&itbs=1&tbnid=4zSGWE8jsm-ZIM:&tbnh=127&tbnw=127&prev=/images?q=environment&hl=en&gbv=2&tbs=isch:1


67/101


68/101

* Also there are two cement plants owned by M/s. Jay Pee AtRewa In Madhya Pradesh M/s. Jay Pee Bela Cement Plant were

found to be marginally exceeding the emission standards for

which Madhya Pradesh State Pollution Control Board was asked

to take corrective action.


69/101

* Even India's second largest cement company ACC

ltd's two plants have been issued environment

violation directions.

The company has several awards to its credit for its

achievement in environment awareness andprotection including the Golden Peacock

Environment Management special award and Subh

Karan Sarawagi Environment Award to name a few.


70/101


71/101


72/101

THE OBJECTIVE OF THE ACT BEFORE 1991:

* Regulation of monopolies and prevention of concentrationof economic power.

* Prohibit monopolistic, restrictive and unfair trade practices.

THE OBJECTIVE OF THE ACT AFTER 1991:

* Controlling monopolistic trade practices

* Regulating restrictive and unfair trade practices.


73/101

* From the beginning of 1990 there was a shift in the focus from

regulating monopolies to promoting competition. Competition ,if encouraged , would improve productivity and increase quality

benefitting consumers. The Competition Act precisely seeks to

achieve this.

* The MRTP Act had become redundant post July 1991 when thenew economic policy was announced


74/101

new economic policy was announced

* Hence in October 1999 Government Of India appointed a high

level committee known as RAGHVAN COMMITTEECommittee presented its report in May 2000 & based on this

report draft was presented to government in November, 2000.

This act was enacted by Parliament in 53rd year of Republic of

India & was passed in December, 2002 namely called asCOMPETTITION ACT 2002.

* The Ministry Of Corporate Affairs, Government Of India

issued a notification dated 28th August 2009, whereby theMonopolies And Restrictive Trade Practices Act, 1969 (The MRTP

Act) stands replaced by the Competition Act, 2002, with effect

from September 1, 2009.


75/101

OBJECTIVE OF COMPETITION ACT:

* The Competition Act seeks to provide, keeping in view of theeconomic development of the country, for the establishment of a

commission to prevent practices having adverse effect on

competition, to promote and sustain competition in markets, to

protect the interests of consumers and to ensure freedom of trade.* This Act seeks to establish Competition Commission of

India(CCI). Any person, consumer, consumers association, trade

association, a state government or Central government may lodge

a complaint with the Commission.


76/101


77/101


78/101

* Transfer Of Pending CasesUpon the expiry of two years from 1

September 2009, cases pending before the

MRTP commission will be transferred as

follows:-
http://images.google.com/imgres?imgurl=http://www.lifesip.com/images/competition-7.gif&imgrefurl=http://www.lifesip.com/perfect-competition.html&usg=__Kj2ZBS8zD0wTq0d54x4NkUvJWNE=&h=349&w=486&sz=6&hl=en&start=2&itbs=1&tbnid=s3bCb1SbKr8OPM:&tbnh=93&tbnw=129&prev=/images?q=competition&hl=en&gbv=2&tbs=isch:1


79/101


80/101


81/101

Sections 5 and 6 that deal with combinations, mergers andacquisitions are yet to be notified.

This has resulted in ambiguity and confusion as there were

effectively two independent statutes, the MRTP act and the

competition act having concurrent jurisdiction. This has led to the

uneasy coexistence of two regulators without reconciled powers

and functions, the MRTP commission and Competition

Commission Of India (CCI).

* Advisable to put a clause that closing of the transaction would

be subject to any clearance of CCI.


82/101


83/101

Functions Societies Registration Act 1860 Partnership Act 1932

Companies ( Donation to National ) Fund Act 1951 Companies Act, 1956 The Companies Amendment Act, 2006 The Monopolies and Restrictive Trade Practices

Act, 1969

The Competition Act, 2002 The Chartered Accountants Act, 1949 Cost and Works Accountants Act, 1959 The Company Secretaries Act, 1980

Limited Liability Partnership Act, 2008


84/101

Recent initiatives Introduction of the Companies Bill, 2009

Limited Liability Partnership Act, 2008

Indian Institute of Corporate Affairs, May 2008,

Gurgaon Amendments (2006) in the Chartered Accountants

Acts, 1949, the Cost and Work Accountants Acts,1959 and the Company Secretaries Acts, 1980


85/101

Most important piece oflegislation governing CorporateIndia

It covers almost everything from,

birth to Grave of a Company 658 Sections, 13 schedules, 32

rules, 107 forms

Several guidelines & hundreds of

clarifications given time to time Objectives

Promotes Sec. 38-39 of the VI ofthe Constitution of India.


86/101

1. What is Its Purpose2. Salient Features

New Companies Act will be the thematic law for thisdecade

Insider trading becomes a criminal offence Consolidated financial statements of subsidiaries made

mandatory

recognition of cross-border mergers

Provision for single forum for approval of mergers andacquisitions

minimum number of independent directors to beappointed in listed companies should be one-third of thetotal number of directors


87/101

Appointment of valuers is proposed to be made by an

audit committee or in its absence by the board ofdirectors.

Shareholders associations or group of shareholdersare to be enabled to take legal action in case of anyfraudulent action on the part of a company

Clause that disallows claims over unclaimed dividendafter seven years removed

The Investor Education and Protection Fund (IEPF) isto be administered by a statutory authority.

Role of independent directors clearly defined Process for formation of companies simplified


88/101

3. Company Bill for more powers to Govt inprobing offences

4. Accounting norm changes to be incorporated innew Company Act

5. The National Company Law Tribunal

6. Rules to be made stringent for filing class action

suits

7. Company to separate posts of Chairman andCEO

8. Knowledge test soon to assess company directors

9. Two sets of accounting standards under companyAct


89/101

Why LLP Acts, 2008

Salient Features

A hybrid between a limited liability company and a

partnership firm Able to form multi-disciplinary partnerships.

Flexibility of operations as board/general andextraordinary general meetings are not required to be

conducted. Business can be expanded depending upon the

increases in the area of operations.

Limited procedural formalities.

89


90/101

The Liability of an LLP is met out of the property of theLLP; the partner is not liable.

A partner is not responsible for the wrongful act oromission of any other partner

No collective responsibility for every action of the LLP.

The control of the Registrar of Companies on LLPs wouldbe substantial.

The Centre would have enormous rule-making powerunder the Act as there are 33 specific matters under sub-

section (2) of Section 72 of the Act,


91/101

The Bill does not provide for conversion/re-conversion ofLLPs into firms/private companies and unlistedcompanies.

Financial disclosures may act as a deterrent for formationof LLPs

Lack of ceiling on the maximum number of partners maymake LLPs unmanageable

Fines/penalties/prosecutions and imprisonment providedfor in the Act may prove a major irritant for forming LLPs.


92/101

Est. May 2008 Manesar, Gurgaon

Purpose

A global first in concept and design

Re-inventing & repositioning MCA Fill Institutional vacuum

Ministrys think-tank

Futuristic in vision and approach

Global Collaboration- Governance and EconomicGrowth

Powerful global KMS


93/101

Income Tax Act 19611. Direct Tax e.g. Personal tax,

corporate tax, wealth,inheritance tax

2. Indirect Taxes e.g. Excise,custom, sales, VAT

Proposed Tax Reforms

GST planned to be implementedfrom April 2011


94/101

What is the justification forGST?

What is GST? How does itwork?

Salient Features of theproposed GST

1. The Reform entails a dualGST

2. Uniform state GST

threshold3. Rate structure

4. Multiple statutes

5. Tax Administration


95/101

How will GST benefit industry, trade andagriculture ? comprehensive and wider coverage of input tax set-off

and service tax set-off

subsuming of several Central and State taxes in the GSTand phasing out of CST

may also lead to lowering of tax burden on an averagedealer in industry, trade and agriculture.

How will GST benefit the exporters? reduce the cost of locally manufactured goods and services

increase the competitiveness of Indian goods andservices

reducing the compliance cost.


96/101

How will GST benefit the small entrepreneursand small traders?

raising of threshold will protect the interest of small

traders

How will GST benefit the common consumers? Goods will become cheaper under GST


97/101

Mutually agreements-protection and enforcements

an agreement enforceable by law is a contract

An agreement not enforceable by law is said to be

void Essentials of Valid Contract


98/101


99/101

Ministry of corporate Affairs, www.mca.gov.in Business Line, www.thehindubusinessline.com

Indian Institute of corporate Affairs,www.primedirectors.com

Economic & Political weekly, Dec, 2009 Vol. XLIV No.51

Economic & Political weekly, Jan 2, 2009 Vol. XLV No.1

The Institute of Company Secretaries of India(ICSI)www.icsi.edu

Institute of Chartered Accountants of India, www.icai.org The Companies Act, 1956

The Contract Act, 1872

Limited Liability Partnership Acts, 2008

Contd
http://www.icai.org/http://www.icai.org/http://www.icai.org/http://www.icai.org/http://www.icai.org/http://www.icai.org/http://74.125.153.132/search?q=cache:xkxIciwcxHsJ:stoposco.wordpress.com/posco-project-in-orissa/+land+acquisition+act+and+posco&cd=2&hl=en&ct=clnk&gl=inhttp://74.125.153.132/search?q=cache:xkxIciwcxHsJ:stoposco.wordpress.com/posco-project-in-orissa/+land+acquisition+act+and+posco&cd=2&hl=en&ct=clnk&gl=in


100/101

stoposco.wordpress.com/posco-project-in-orissa/ - Cached

en.wikipedia.org/wiki/Tata_Nano _Singur_controversy - Cached

Similar www.pib.nic.in/release/release.asp?relid=57499

envfor.nic.in/legis/legis.html

www.deccanchronicle.com Hyderabad- Cached

www.legalserviceindia.com/articles/neew.htm - Cached - Similar www.lawyersclubindia.com/.../COMPETITION-ACT-2002.../2501/ -

Cached

Essentials of Business Environment by: K. Aswathappa

Business Environment by : Francis Cherunilum

The HINDU (22/2/2010)

Business Standard (2/2/2010)

Business India(February7,2010)
http://74.125.153.132/search?q=cache:xkxIciwcxHsJ:stoposco.wordpress.com/posco-project-in-orissa/+land+acquisition+act+and+posco&cd=2&hl=en&ct=clnk&gl=inhttp://74.125.153.132/search?q=cache:JVE1AqgvCKsJ:en.wikipedia.org/wiki/Tata_Nano_Singur_controversy+land+acquisition+and+nano&cd=10&hl=en&ct=clnk&gl=inhttp://www.google.co.in/search?hl=en&q=related:en.wikipedia.org/wiki/Tata_Nano_Singur_controversy+land+acquisition+and+nano&sa=X&ei=Q3uLS5G8NM22rAeI_fiaCg&ved=0CB0QHzAJhttp://www.google.co.in/url?q=http://www.deccanchronicle.com/city/hyderabad&ei=U2ONS_OyF462rAeDusyVAg&sa=X&oi=breadcrumbs&resnum=6&ct=result&cd=1&ved=0CBcQ6QUoAA&usg=AFQjCNF8Qve0fJ3Qgp6vpwInNUo4HYbAGwhttp://74.125.153.132/search?q=cache:9Xl4ViIomjkJ:www.deccanchronicle.com/hyderabad/mrtp-act-will-be-replaced-2011-320+mrtp+act+2009&cd=6&hl=en&ct=clnk&gl=inhttp://74.125.153.132/search?q=cache:yIS1s5os9oAJ:www.legalserviceindia.com/articles/neew.htm+mrtp+act+and+competition+act2002&cd=2&hl=en&ct=clnk&gl=inhttp://www.google.co.in/search?hl=en&q=related:www.legalserviceindia.com/articles/neew.htm+mrtp+act+and+competition+act2002&sa=X&ei=sWaNS_mXGsK1rAeVgemVAg&ved=0CAwQHzABhttp://74.125.153.132/search?q=cache:ZL_8_yvLEi0J:www.lawyersclubindia.com/articles/COMPETITION-ACT-2002-BRIEF-REVIEW/2501/+competition+act+2002+in+cases+2009&cd=3&hl=en&ct=clnk&gl=inhttp://74.125.153.132/search?q=cache:ZL_8_yvLEi0J:www.lawyersclubindia.com/articles/COMPETITION-ACT-2002-BRIEF-REVIEW/2501/+competition+act+2002+in+cases+2009&cd=3&hl=en&ct=clnk&gl=inhttp://www.google.co.in/search?hl=en&q=related:www.legalserviceindia.com/articles/neew.htm+mrtp+act+and+competition+act2002&sa=X&ei=sWaNS_mXGsK1rAeVgemVAg&ved=0CAwQHzABhttp://74.125.153.132/search?q=cache:yIS1s5os9oAJ:www.legalserviceindia.com/articles/neew.htm+mrtp+act+and+competition+act2002&cd=2&hl=en&ct=clnk&gl=inhttp://74.125.153.132/search?q=cache:9Xl4ViIomjkJ:www.deccanchronicle.com/hyderabad/mrtp-act-will-be-replaced-2011-320+mrtp+act+2009&cd=6&hl=en&ct=clnk&gl=inhttp://www.google.co.in/url?q=http://www.deccanchronicle.com/city/hyderabad&ei=U2ONS_OyF462rAeDusyVAg&sa=X&oi=breadcrumbs&resnum=6&ct=result&cd=1&ved=0CBcQ6QUoAA&usg=AFQjCNF8Qve0fJ3Qgp6vpwInNUo4HYbAGwhttp://www.google.co.in/search?hl=en&q=related:en.wikipedia.org/wiki/Tata_Nano_Singur_controversy+land+acquisition+and+nano&sa=X&ei=Q3uLS5G8NM22rAeI_fiaCg&ved=0CB0QHzAJhttp://74.125.153.132/search?q=cache:JVE1AqgvCKsJ:en.wikipedia.org/wiki/Tata_Nano_Singur_controversy+land+acquisition+and+nano&cd=10&hl=en&ct=clnk&gl=inhttp://74.125.153.132/search?q=cache:xkxIciwcxHsJ:stoposco.wordpress.com/posco-project-in-orissa/+land+acquisition+act+and+posco&cd=2&hl=en&ct=clnk&gl=in


101/101

pol and legal env of india

Documents