Ergo Update

In an important development, the Employees’ Provident Fund Organisation (EPFO) issued a circular dated 24 February 2022 clarifying that the trainees engaged by an establishment under the All India Council for Technical Education [National Employability Enhancement Mission (NEEM)] Regulations, 2017 (NEEM Regulations) will not be deemed exempted from the definition of ‘employee’ under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act).

The income-tax authorities conducted a search and seizure operation at the residential premises of Mr Dilip Thakkar (Taxpayer). Some material found during the exercise indicated that the Taxpayer was linked to an offshore bank account.

India and the United Arab Emirates (UAE) on Friday signed a Comprehensive Economic Partnership Agreement (CEPA), which is set to reduce tariffs for 80 per cent of goods and give zero duty access to 90 per cent of India’s exports to the UAE.

The Ministry of Power (MoP) on 17 February 2022 announced the much awaited Green Hydrogen Policy (Green Hydrogen Policy). The Union Budget of 2021 had first mentioned about the proposed National Hydrogen Mission.

Since it was made effective in 2009, the Limited Liability Partnership Act, 2008 (LLP Act) has proven to be a business vehicle of choice for partnerships, entrepreneurs, and body corporates alike. Its relevance, especially in the micro, small and medium enterprises sector may be attributed to two primary factors, namely, the benefits of limited liability (versus a partnership) and the flexibility in administration and reduced reporting norms (versus a company incorporated under the Companies Act 2013).

On 3 February 2022, the Competition Commission of India (CCI) passed an order under Section 27 of the Competition Act, 2002 (Act), imposing a penalty of INR 12.447 million on seven entities for bid rigging in supply of signages for branches/offices/ATMs of State Bank of India (SBI), India’s largest public sector bank.

On 8 February 2022, the Department of Telecommunications (DoT) released guidelines for registration of ‘Machine to Machine’ (M2M) service providers namely, ‘Registration Process of M2M Service Providers (M2MSP) & WPAN/WLAN Connectivity Provider for M2M Services’ (M2MSP Guidelines).

The National Company Law Appellate Tribunal, New Delhi Bench (NCLAT) in Dheeraj Wadhawan v The Administrator, Dewan Housing Finance Corporation Ltd. held that ‘supersession of directors’ under the Reserve Bank of India Act, 1934 (RBI Act) is different from 'suspension of directors’ under the Insolvency and Bankruptcy Code, 2016 (Code), and that a 'superseded director' on the vacation of office pursuant to supersession is neither entitled to the notice of the meeting of the committee of creditors (CoC) nor has a right to participa

The Government of Maharashtra (GoM) has by the Maharashtra Stamp (Amendment) Act, 2021 (2021 Amendment Act) amended Article 6 (Agreement Relating to Deposit of Title Deeds, Pawn, Pledge or Hypothecation), Article 33 (Further Charge), Article 40 (Mortgage Deed), Article 41 (Mortgage of Crop) and Article 54 (Security Bond or Mortgage Deed) of Schedule I of the Maharashtra Stamp Act, 1958 (Maharashtra Stamp Act).

The Securities and Exchange Board of India (SEBI) in its board meeting on 28 December 2021 (Board Meeting) declared the introduction of the ‘Special Situations Fund’ (SSF), as a new sub-category of Category I Alternative Investment Funds (AIFs) under the SEBI (AIF) Regulations, 2012 (AIF Regulations).