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TMI Blog2013 (5) TMI 352X X X X Extracts X X X X X X X X Extracts X X X X ..... DI Policy. The competence of the Central Government to formulate a policy relating to investment by a non-resident entity/person resident outside India, in the capital of an Indian company is beyond doubt. The Reserve Bank of India (RBI) is empowered to prohibit, restrict or regulate various types of foreign exchange transactions, including FDI, in India by means of necessary regulations. RBI Regulates foreign investment in India in accordance with Government of India's policy. Writ Petition is dismissed - Writ Petition (C) No. 417 of 2012 - - - Dated:- 1-5-2013 - R. M. Lodha, Madan B. Lokur And Kurian Joseph,JJ. ORDER We have heard Mr. Manohar Lal Sharma petitioner in person and Mr. Goolam E. Vahanvati, learned Attorney Gen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nagement (Transfer or Issue of Security by a Person Resident Outside India) (Third Amendment) Regulations, 2012 (for short 2012 Regulations ) published in the Gazette of India Extraordinary on October 30, 2012. 7. By the 2012 Regulations, Reserve Bank of India in exercise of the powers conferred by clause (b) of sub-section (3) of Section 6 and Section 47 of the Foreign Exchange Management Act, 1999 (for short FEMA ), has made amendments to the 2000 Regulations. 8. There is no challenge to the 2012 Regulations. In the absence of any challenge to the 2012 Regulations, the contention of the petitioner that Press Note Nos. 4,5,6,7 8 (2012 Series) dated 20th September, 2012 have no force of law, does not survive for any scrutiny. 9. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... According to ICRIER report, unorganized and organized retail not only co-exist, but also grow substantially in size. 12. The salient features of the FDI Policy on Multi-Brand Retail Trading are also indicated in the counter-affidavit. The policy mandates at least 30% of the value of procurement of manufactured/processed products purchased shall be sourced from Indian 'small industries' which have a total investment in plant machinery not exceeding US $ 1.00 million. It also provides that retail sales outlets may be set up only in cities with a population of more than 10 lakhs as per 2011 Census and may also cover an area of 10 Kms around the municipal/urban agglomeration limits of such cities. In States/Union Territories not having citi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olicy is unconstitutional or contrary to the statutory provisions or arbitrary or irrational or in abuse of power. The impugned policy that allows FDI up to 51% in Multi-Brand Retail Trading does not appear to suffer from any of these vices. 16. Notably, the Department of Industrial Policy and Promotion (DIPP) as per the Allocation of Business Rules, 1961 is allocated the subject of 'Direct foreign and non-resident investment in industrial and service projects, excluding functions entrusted to the Ministry of Overseas Indian Affairs'. Seen thus, the DIPP is empowered to make policy pronouncements on FDI. There is no merit in the submission of the petitioner that Central Government has no authority or competence to formulate FDI Policy. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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