ELP LAW Updates

 Owing to its colonial heritage and the political affinity towards the agricultural sector in India, most states in India, especially Maharashtra had agricultural land laws designed to promote and protect the agricultural sector and agriculturists.  However, with India’s focus on globalization and the need to promote the industrial sector, the Maharashtra Government continued to liberalize laws in order to ensure ease of doing business in the State.  This article by Economic Laws Practice, which is a leading legal advisor for Real Estate in India , discusses one such change which had a major impact were the introduction of and subsequent amendments made to Section 63 (1A) of the Maharashtra Tenancy and Agricultural Lands Act, 1948 (MTAL) which was an exception to the rule where non-agriculturists were barred from acquiring any agricultural property in the State. The aforesaid provision was introduced under MTAL in 1994, allowing non-agriculturists to acquire agricultural ...

 On the 1st of July 2021, the OECD nations adopted a High-Level statement containing an outline of the possible solution to address the tax challenges arising from the digitization of the economies.  India, which is also a signatory to the statement, has been consistent in its stand to equitably tax the digital economy.  With the advent of the NDA Government in 2014, India’s pitch for accelerated digitization was evenly matched with its quest to tax the growing digital economy, primarily driven by the fact that despite being one of the largest markets, most of the technology giants did not pay income tax in India.  India’s first move:  While a consensus eluded the major nations on the appropriate manner of taxation of the digital economy, India, introduced a new concept called the Equalisation Levy (EL) in the 2016 Budget. India and Israel were among the earliest countries to unilaterally levy a digital tax on the foreign companies. India levied a 6% of digital ...

  Across the world, there is a growing demand on corporations to focus on sustainable development goals and strengthen the social responsibility of business. Working in sync with each other, while Governments are taking initiatives to bring legislative changes, investors also have started to value and consider such factors as key parameters for making an impact with their investment. The investors (such as private equity funds, venture capital funds, social venture funds, banks, financial institutions) are looking towards going a step further to not just focus on monetary returns but also achieve positive social and environmental impact. The impact of COVID-19 has already created ripples in the society to switch focus on various social goals. Against this backdrop, the framework in India has progressed significantly with increased accountability for directors, key personnel and more disclosures relating to businesses. A series of efforts have been taken by the Indian Government, on...

 Asian Hotels (West) Limited (Owner) was recently in the news on account of suspension of operations of Hyatt Regency, Mumbai. Apropos such suspension, the Owner has been beset by several challenges, one of which is the resignations tendered by the independent directors of the Owner. The independent directors have cited the financial crunch faced by the Owner and alleged non-compliances of applicable laws by the Owner. It was also contended that the Chairperson and other directors of the Owner failed to convene a meeting of the board of directors to discuss the financial condition of the Owner. This incident, coupled with the financial constraints faced by several hotel companies across the country, begets the question as to what duties directors have in such circumstances. With the enactment of the Companies Act, 2013 (Companies Act), the duties of directors were codified. Section 166(2) of the Companies Act requires a director of a company to “act in good faith in order to promot...