The Supreme Court on Monday observed that no legal sanction was given to Foreign Direct Investment (FDI) in Multi-Brand Retail Sector in India. To this statement, the Attorney General of India, Mr. A.G. Vahanvati said that, the Reserve Bank of India are coming up with regulations to generate the lacunae present in the current scenario. Since, Mr. Vahanvati told the court that, RBI have already started working on the required regulation with regards to Foreign Exchange Management Regulation, 2000 in order to boost the Foreign Direct Invest (FDI) in Retail Sector, the bench comprising of Justice R.M. Lodha and Anil R. Dave gave RBI two week’s time to come up with the New Policy.
When Advocate Manohar Lal Sharma challenged this action of Central Government by means of an executive order and an interim plea, same was rejected by Justice Lodha who said that there was no question on stay on the policy decision with regards to this matter.
In order to give license to 50 companies for FDI in Retail Sector, the Government’s meeting which was scheduled to be held on 19th October 2012 was re-scheduled. Also A.G. Vahanvati told the court that he would speak to the RBI Manager to ensure that they accelerate with the process of bringing out the New Regulations so that the deadline is met as stated.
APARNA D. SHENOY
School of Law Christ University,