December10th 2011

ALB20111207

Abhyaas Law Bulletin

For the quintessential CLAT aspirant
The Scoop Of The Month Row after Cabinet approves 51% FDI in multi-brand retail The Editors Column Dear Student, Welcome to the December edition of the Abhyaas Law Bulletin. This month was also eventful like the last month. The Union Cabinet approved 51% FDI in multi-brand retail. This decision triggered a political storm with opposition and some UPA allies opposing the decision. The winter session of the Parliament was stalled by the opposition against the Governments decision. The government since then has announced a temporary hold on the decision. Meanwhile Mayawati led BSP Government passed a resolution in the UP assmebly requesting the center to divide UP into four small states. This political development is further head ache for the UPA which is already grappling with the Telangana issue. The winter session of Parliament did no business in the first 8 days after repeated disruptions by the opposition on various issues like Price rise, Black money, FDI etc. Top Maoist leader Kishenji was killed in an encounter in West Bengal. This is the second high profile encounter after Azad was killed early this year. Cyrus Mistry is appointed Chairman of the TATA group after Ratan Tata. He will take over the group after Ratan Tata retires in December 2012.

In a bid to remove the impression that UPA-II is suffering from a decision making paralysis and kicking off the second generation reforms, the Union Cabinet on 24th November gave its approval for 51 per cent foreign direct investment (FDI) in multi-brand retail and 100 per cent FDI in singlebrand retail. The decision is likely to clear the decks for the entry of foreign retail giants such as Tesco, WalMart and Carrefour, which have been waiting in the wings for long to have a taste of the $450billion retail Indian market. The announcement evoked strong criticism from Opposition parties, including the BJP and the Left, but was welcomed wholeheartedly by corporate India. The opposition from one of the UPA allies, Trinamool Congress, to the proposals did not deter the government from taking the decision. The winter session of Parliament was stalled for 4 continuous days with opposition demanding a roll back of this decision. Even the UPA allies like the Trinamool Congress and DMK are against FDI in retail. (Con td .)

Happy Reading !

(Rakesh Dubudu) Index: Page 2: National Page 3: International Page 4: Spotlight

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December10th 2011
National: The proposal for 51 per cent FDI in retail has come with certain riders, including approval to be taken from the Foreign Investment Promotion Board (FIPB), a minimum investment of $100 million by the foreign investor, putting 50 per cent of the total FDI in back-end infrastructure and procurement of 30 per cent of the products from small scale industries. Fresh agricultural produce, including fruits, vegetables, flowers, grain, pulses, fresh poultry, fishery and meat products, may be unbranded. For the purpose of FDI in multi-brand retail, the Cabinet note describes small industries as units which have a total plant and machinery investment not exceeding $250,000 (around Rs.1.25 crore). This investment refers to the value at the time of installation, without providing for depreciation. The foreign retail chains will be required to comply with self-certification. They have to keep all records and the government will have the first right to procure agricultural produce. The Cabinet note clearly states that investment made in processing, manufacturing, distribution, design improvement, quality control, cold chain, warehouses and packaging, amongst others, will constitute back-end investment. The retail chains will be allowed only in cities with a population of more than 10 lakh as per the 2011 census. There are 51 cities with a population of more than one million, based on the 2011 census. Some of the key conditions for allowing 100 per cent FDI in single-brand retail are: selling products under the same brand name internationally; product retailing will cover only those products that are branded during manufacturing and the foreign investor should be the owner of the brand. After opposition from all major parties, UPA allies and some of its own MPs, the Congress has decided to put a hold on this decision for now. An all party meeting is expected to be held on the issue. Meanwhile Industry bodies like the CII have welcome this decision and termed the opposition to FDI in retail as a false drama. The small traders have opposed the move while some farmer bodies have welcomed the move with some riders. Bar Council, 50, gearing for jubilee The Bar Council of India (BCI) will celebrate its golden jubilee in a fitting manner in Delhi, Mumbai, Kolkata, Chennai and other State capitals over a year beginning December. The BCI was formed in 1961 as a regulatory body for the legal profession governed by the Indian Advocates Act. It has powers to enquire into professional misconduct and initiate disciplinary action against erring members. It has control over the State Bar Councils also. When the silver jubilee was celebrated in 1986, the total number of advocates in the country was around three lakh. However, in the last 25 years, with the BCI streamlining legal education, there has been a tremendous growth, particularly after it took the initiative to establish law schools in various States. Now, there are about 13 lakh advocates and the BCI is controlling and regulating over 900 colleges imparting three and five-year law courses. . Revised draft of food Bill gives primacy to cash transfers, coupons The Union Government's new move to give primacy in the revised draft of the National Food Security Bill, 2011, to controversial schemes like cash transfers and issuance of food coupons to identified public distribution system beneficiaries in lieu of food grain entitlements has got social activists up in arms. The scheme was introduced under Schedule II' in the initial draft of the Bill that was posted on the Union Food Ministry's website for public comments. It has now been inserted into the main body of the revised draft as a whole new chapter (VII) linked to reforms in the public distribution system, giving a clear indication that the government is moving towards it. Activist Biraj Patnaik termed it as ridiculous and said in a country that was high on gender inequality, where the rural banking system was in shambles and direct cash transfers in old-age, widow and disabled pension schemes had not been streamlined, this would adversely impact food procurement and minimum support price to farmers if beneficiaries were to buy supplies from the open market. The world over it is known that food is in the hands of women but cash is controlled by men who have different priorities on how to spend it.''

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December10th 2011
Jairam orders performance audit of MGNREGS After the Andhra Pradesh government violated the provisions of the Mahatma Gandhi National Rural Employment Guarantee Act by providing work to households in excess of the legal entitlement of 100 days, Union Minister for Rural Development Jairam Ramesh has asked the Comptroller and Auditor General to conduct a performance audit in 12 States that had made the greatest expenditure under the scheme. In his letter to the CAG Vinod Rai, Mr. Ramesh expressed serious concerns about the manner in which MGNREGS money was being spent and pointed out the grey areas that his audit performance should also focus on. Andhra Pradesh made the excess expenditure of Rs. 500 crore during 2010-11 and has asked the Union government to reimburse the money. In several States, the material-labour ratio of 40:60 of expenditure under the MGNREGS has been breached; Pucca works have been executed at individual project cost in several cases. States have also deviated in the calculation of wage rates per quantum of work. Mr. Ramesh pointed out that the tasks assigned for the wage payment of one man-day of labour under the MGNREGS was much less than that prescribed under State schemes, which led to a greater outgo of Central funds. Grievance Redress Bill to complement Lokpal Bill If the proposed Lokpal Bill intends to address corruption in high places, the UPA government, as part of its anti-graft campaign, plans to introduce a Citizens Right to Grievance Redress Bill to complement it in the winter session of Parliament. The Grievance Redress Bill would cover the functioning of panchayats, the government, public sector units and even the police. This law, once enacted, would ensure that citizens' grievances would have to be addressed within a fixed time frame. It would look into complaints of violation of the citizens' charter, which would be formulated by each government department, identify liabilities of public servants in case of default and impose penalties for failure to deliver services or redress grievances in a time-bound manner. The Prize in Economic Sciences Thomas J. Sargent and Christopher A. Sims for their empirical research on cause and effect in the macroeconomy Hang Kasab: Rehman Malik As India marked the third anniversary of the Mumbai terror attacks with demands for credible and speedy action against Pakistan-based masterminds, Pakistan's Interior Minister Rehman Malik expressed the hope that his country would send a Judicial Commission to India soon. Mumbai terror attacks case convict Ajmal Kasab is a terrorist and should go to the gallows, said Pakistan Interior Minister Rehman Malik . International Nobel Prize Winners 2011 The Nobel Prize In Physics Saul Perlmutter, Brian P. Schmidt and Adam G. Riess "for the discovery of the accelerating expansion of the Universe through observations of distant supernovae The Nobel Prize In Chemistry Dan Shechtman for the quasicrystals

discovery

of

The Nobel Prize In Physiology or Medicine Bruce A. Beutler and Jules A. Hoffmann for their discoveries concerning the activation of innate immunity Ralph M. Steinman for his discovery of the dendritic cell and its role in adaptive immunity The Nobel Prize In Literature Tomas Transtrmer because, through his condensed, translucent images, he gives us fresh access to reality

The Nobel Peace Prize Ellen Johnson Sirleaf, Leymah Gbowee and Tawakkol Karman for their non-violent struggle for the safety of women and for womens rights to full participation in peace-building work

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December10th 2011

This month in pictures:

Justice Madan Bhima Rao Lokur is the new CJ of AP High Court

Cyrus Mistry is declared the successor of Ratan Tata to head the TATA group

Top maoist leader Kishenji was killed in an encounter in West Bengal

Serving IAS officer from AP Sri Lakshmi was arrested by CBI in the OMC case.

DMK MP Kanimozhi is out of jail after 6 months after a court granted her bail in the 2G case.

Spotlight: Symbiosis Law School, Pune

C.N.R. Rao has been awarded the Ernesto Illy Trieste Science Prize for 2011

Symbiosis Law School, Pune originally known as Symbiosis Society's Law College, was established in 1977 under the banner of Symbiosis Society. Active clubs and societies of Symbiosis Law School, Pune include the Human Rights Cell (HRC), The Environment Protection and Consumer Rights Organization (Ecocon), Legal Aid and Literacy Cell, Tech Legal Cell, Alumni Cell, Corporate Cell, Law Hawks Forum, International Cell - ILSA, Sports Committee, Law and Economics cell(LAWECON) Admission for Undergraduate Programmes is through Symbiosis Entrance Test (SET)which is a common written test for the admission processes of Undergraduate Institutes of Symbiosis International University (SIU). The Entrance Test is followed by Group Exercise and Personal Interview . The total intake is 250 seats (inclusive of 180 seats of B.B.A.LL.B and 70 seats of B.A.LL.B). Symbiosis Law School, Pune has been ranked fifth and sixth of India Today and Outlook's ranking respectively. SLS is conferred with the honour of being a core partner in the global network of legal institutes, the Erasmus Mundus, DAAD (German Academic Exchange Service) a grant for bilateral exchange with Leibniz University of Hannover, Germany. Feel free to write to: lawprep@abhyaas.in We dont wish to print this journal, save paper, avoid printing.

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