Ergo Update

In the past few decades, non-banking financial companies (NBFCs) have played a very critical role in the growth of the Indian financial services landscape. The NBFC eco-system has efficiently supported the formal banking system by providing access to credit and other financial services to various sections of the Indian industry. Over the years, the Reserve Bank of India (RBI) has also closely regulated the operations of NBFCs, and has been rationalizing the applicability of stricter regulations based on their asset size.

On 11 October 2021, the Competition Commission of India (CCI) imposed a cumulative penalty of INR 2.9 million on providers of engineering and construction services, for rigging a tender floated by GAIL (India) Limited (Informant).

In the recent case of Garg Builders v Bharat Heavy Electricals Limited [Civil Appeal No. 6261 of 2021], a two-judge bench of the Supreme Court of India (Supreme Court) held that an arbitrator cannot grant pendente lite interest when the contracting parties have freely and expressly opted out of receiving interest under the contract. 

In a recent decision of Municipal Corporation of Greater Mumbai v Ankita Sinha & Others, a three judge bench of Supreme Court of India held that the National Green Tribunal (NGT) has power to take suo motu cognizance of environmental issues, even though the National Green Tribunal Act, 2010 (NGT Act) does not expressly provide the NGT with power to take suo motu cognizance. The judgment was rendered in a batch of connected matters with the same issue – whether the NGT has the power to exercise suo motu jurisdiction in discharge of its functions under the NGT Act.

Over the last decade, projects which aim to promote sustainable development by adopting alternative means of achieving a goal without hampering the environment (Green Projects) have gained a lot of popularity. Renewable power companies using renewable sources such as solar and wind as against fossil fuel to generate power, adopting electronic and low carbon means of transport, building green residential homes, recycling, etc. are few of the many examples for Green Projects.

Traditionally, the taxation of business profits has been linked to a physical presence-based nexus rule. While this was sufficient in the brick-and-mortar economy, the rapid digitalisation of the economy (with growth of digital platforms like Facebook, Amazon, Netflix, Google etc) exposed gaps in such tax rules. Businesses no longer need physical presence to derive economic benefits from a jurisdiction.

The Competition Commission of India (Commission) through an order dated 24 September 2021 imposed a combined penalty of about INR 870 crore (~USD 116.75 million) on United Breweries Limited (UBL) and Carlsberg India Private Limited (CIPL) for cartelisation (including price fixing) between UBL, CIPL and Anheuser Busch InBev SA/NV (ABI) (collectively OPs) in market for “production, marketing, distribution and sale of beer in India”.

The Directorate General of Trade Remedies (DGTR) has issued a series of Trade Notices to implement major steps to streamline and simplify the existing procedures for participation by all stakeholders in Anti-Dumping (AD) /Countervailing Duty (CVD) proceedings. The new procedures provide for revised application formats and questionnaires for domestic industry, exporters, importers and end-users.

Aggrieved by the order of the National Company Law Appellate Tribunal (NCLAT) refusing to condone a delay of 44 (forty-four) days in filing an appeal against the order passed by the National Company Law Tribunal (NCLT), the Appellant (i.e., National Spot Exchange Limited) preferred an appeal before the Hon’ble Supreme Court of India.

On 17 September 2021, the Competition Commission of India (CCI) issued a prima facie order (Order) under Section 26(1) of the Competition Act, 2002 (Act) directing the Director General (DG) to investigate alleged anti-competitive clauses in agreements executed between UFO Moviez India Limited (UFO) and Qube Cinema Technologies Limited (Qube), on one hand, and cinema theatre owners (CTOs), on the other.