Ex post facto approval granted to a respondent for foreign ...

Violation of natural justice: Fresh committee to hear parties on foreign investment proposal.

Case Laws     FEMA

November 12, 2024

Ex post facto approval granted to a respondent for foreign investment violated principles of natural justice. A committee was constituted to examine rival contentions, but the reconstituted committee granted approval without affording fresh opportunity of personal hearing to parties, resulting in gross violation of right to personal hearing. The High Court held that any authority exercising discretionary power must apply its mind to facts and not act mechanically. The approval was granted without reasons, necessitating fresh reconsideration by a new committee after hearing parties afresh on the proposal. The High Court directed constitution of a fresh committee to hear parties and take appropriate decision on the proposal, without changing committee's composition, affording opportunity of personal hearing and filing written submissions.

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