The RBI has directed banks that deal in foreign exchange to not grant approval to foreign legal firms to set up any office in India under the Foreign Exchange Management Act (FEMA). This follows a Supreme Court decision in the matter. The central bank has also asked banks to report any foreign law firms that do business here. In September 2015, in the case of the Bar Council of India versus A K Balaji and others, the apex court had directed the RBI not to grant any permission to any foreign law firm, on or after the date of the interim order, for opening of a liaison office (LO) in India. After this order, the RBI told banks not to grant fresh permission or renew permission for liaison offices of foreign law firms. The RBI said that the Supreme Court, while disposing of the case, held that only advocates enrolled under the Advocates Act, 1961 are entitled to practice law in India.
Amazon fined for not showing ‘country of origin’
The consumer affairs ministry has asked e-commerce major Amazon India to pay a fine of Rs 75,000 for not providing the details of ‘country of origin’ of products displayed on its platform. This is the first such penalty that the government has imposed on an e-commerce player under The Legal Metrology (Packaged Commodity) Rules, which came into effect in 2018. “If you are willing to close the matter departmentally, you can compound the case as per section 48(1) of the Act on payment for credit to the government an amount of Rs 25,000 each on behalf of each director plus Rs 25,000 on behalf of the company,” the legal metrology department wrote to Amazon Seller Services. It added that in case the company failed to give a satisfactory reply within seven days, the department will be “constrained to initiate” prosecution proceedings against the firm and all the directors at a competent court without any further notice.
Toyota puts up lockout notice again
Toyota Kirloskar Motor (TKM) has yet again issued a lockout notice at its Bidadi plants, a week after it was reopened following the intervention of the Karnataka government. TKM cited the low participation of workmen as the reason for the lockout. TKM’s two plants, which have a total installed capacity of 310,000 units annually and employ 6,500 people, have seen less than 10% of the workers reporting to duty, a person familiar with the matter said. The workers are continuing to maintain their demand of reinstating about 40 workers who were suspended on disciplinary grounds, pending inquiry. TKM said that the majority of the team members are continuing their “illegal strike”. “For the plant operations to run smoothly and effectively, a minimum workforce of 90% in each shift is required and in view of the current situation, it is not viable to carry on with manufacturing activity,” it said.
