New Delhi, Oct 15: The Foreign Exchange Management Act regulations should have been amended by the Reserve Bank of India before the Centre cleared 51 per cent FDI in multi-brand retail, the Supreme Court said today.

The apex court made this observation while hearing a Public Interest Litigation that was filed by Advocate ML Sharma. He argued that retail trading is barred under the existing FEMA regulations.

Attorney General GE Vahanvati admitted that the government had erred since the RBI had not effected any change in the regulations after 2008.

The Supreme Court bench of Justice RM Lodha and Justice AR Dave then said that “it is an irregularity that is curable and as soon as amendment is brought, it would be cured.”

Stating that this irregularity is not enough to warrant a stay on the policy, the court emphasised that RBI must amend the rules without delay.

“This is a must before the policy is given a legalshape,” the judges said. They demanded to know when the RBI will take the necessary steps. Vahanvati assured that he will ask the RBI governor to immediately amend the FEMA regulations.

The court, however, rejected the petitioner’s other contention that prior approval from the President or Parliament was needed for the Centre’s notification on FDI in retail.

“This assumption that the policy has to be in the name of the President is flawed and unfounded. The Constitution does not provide that the policy should be in the name of the President,” the judges said.

Pointing out that Parliament does not look into policies, the court said that a policy can be deemed as incorrect only if the relevant notification is ultra vires of the law.

The court has given the government time till the next hearing on Nov 5 to amend the FEMA regulations.

It is to be noted that the Trinamool Congress walked out of the ruling coalition just days after the UPA allowed 51 per cent FDI in retail. The exit of the Mamata Banerjee-led party meant that the government was reduced to a minority.

http://news.oneindia.in/2012/10/15/rbi-must-amend-fema-regulations-on-fdi-in-retail-sc-1084435.html

Walmart is being probed in India over allegations of FDI norms violations.  Click here to read complete article.

People reject FDI in Retail in the Public Hearing organized by East Delhi Municipal Corporation: Trade Unions, Street Vendors Associations, RWAs & Civil Society expressed their opinion: 98% voted against FDI in Retail in the opinion poll; Respecting Peoples verdict EDMC will not grant trade licences to FDI Retailers: Mayor

In an unprecedented initiative, East Delhi Municipal Corporation (EDMC) organized a public hearing to take note of the peoples’ opinion on the issue of FDI in Retail. People from all sections of society including street vendors, small shop keepers, trade unions, resident welfare associations, civil society representative participated in the public hearing.

Delivering the opening remark, Dr. Annapurna Mishra, the Hon’ble Mayor of East Delhi said that the purpose of the initiative is to take note of the peoples’ voice to help the corporation in shaping trade policies.

An opinion poll was also conducted to know the views of participants. 98% participants opined against FDI in Retail.

Hakim Singh Rawat, R B singh Rajpoot, Sodan Singh, Bijender Yadav, Pravesh Sharma, Bansi Lal (street vendors), Praveen Khandelwal, Satish Garg, Raj Kumar Bhatia, Om Prakash Dubey, Deepak Sharma (Traders), Ashwini Mahajan (SJM), Aneesh Mishra (trade union) Vikramjeet Banerjee (Advocate) and many others expressed their view on FDI in Retail.

Concluding the public hearing senior journalist Sh. Ram Bahadur Rai said that in the past the Prime Minister was against FDI in Retail. He alleged that such policy decisions are influenced by powerful international lobby groups.

The Leader of opposition, Ms. Varyam Kaur, who was also invited for the public hearing came at the closing stages and abruptly interrupted the meeting shouting that the Municipal Corporation can not organize such event.

The Hon’ble Mayor stated that public opinion is evident on the issue of FDI in Retail and respecting the peoples’ verdict the EDMC would bring a motion to oppose FDI in Retail and would not grant any trade licences to FDI retailers.  She said that a detailed report of the proceedings would be send to the Hon’ble Lt. Governor and Chief Minister of Delhi.

Dharmendra Kumar of India FDI Watch conducted the proceeding.

For Photos click:

http://dkfordignity.blogspot.in/2012/09/no-fdi-retailer-in-east-delhi.html