Delhi HC Notice to JSPL on RBI Plea over Transfer of Money
ANI reported that the Division Bench of Delhi High Court has issued a notice to Jindal Steel and Power Ltd on a plea moved by the Reserve Bank of India
ANI reported that the Division Bench of Delhi High Court has issued a notice to Jindal Steel and Power Ltd on a plea moved by the Reserve Bank of India challenging single judge bench order in a matter related to the JSPL's transfer of money to its foreign subsidiary. The Bench of Justice Vibhu Bakhru and Justice Prateek Jalan issued a notice to Jindal Steel and sought reply on RBI plea challenging single bench order and slated the matter for January 15, 2021.
Earlier this month, the Delhi High Court had allowed Jindal Steel and Power Limited to transfer money to its foreign subsidiaries. The single bench of High Court in a recent judgement clarified Regulation 6 and 9 of the RBI FEMA Regulations 2004. It had said "The powers and discretion of the RBI in providing approval for remittance by an Indian company to its foreign subsidiaries have been clarified and reinforced by the judgement. If an Indian entity does not fall in the ambit of Regulation 6 for making direct investment in a joint venture or wholly owned subsidiary outside India under the automatic route. Regulation 9 provides that it may apply to RBI as per specified process.”