EBCL Summary Notes

CS EXECUTIVE
#LAW
#LOGIC
#LOVE
CS SHUBHAM ABAD
B.COM, CS, MA(ECO)
DEDICATED TO MY PARENTS SHRI RIKHABCHAND &
PUSHPA ABAD.
SPECIAL THANKS TO: -
ASHISH & SIMPLE PARIKH FOR YOUR

SUPPORT.
UNIQUE ACADEMY TO GIVE ME THIS
PLATFORM.
MODI SIR FOR A MORAL SUPPORT. & YOU
ARE MY STRENGTH.
CHANCHAL SAKHRANI FOR GIVING BEAUTY
TO THE BOOK AND MAKE IT SIMPLIER.
COMPETITORS FOR MAKING ME STRONG.
STUDENTS FOR WHICH EVERY THING IS. LOVE YOU ALL

3000
FOREIGN EXCHANGE AND MANAGEMENT ACT, 1999
2
➢ Foreign exchange: -
B= Balance payable
C= credit
D= Deposit in foreign currency
→ Draft, traveller cheque, letter of credit, but express and drawn in
India currency but payable in foreign currency and expressed or drawn
in foreign currency.
➢ Person Resident in India: -

• Any person residence in India for more than 182 days in previous
financial year.
• It includes person coming in India for -
a) Doing business
b) Taking employment
c) Stay for uncertain period
• However, it excludes person going outside India for -
a) Doing business
b) Employment
c) Stay for uncertain period
d) Body corporate registered in India -
→ Branch/office in India but controlled outside India
→ Branch /office outside India but controlled in India
➢ Person Resident Outside India: -

• Means a person who is not resident in India.
1|Page
➢ FERA: - ➢ FEMA: -
• Regulated and control • Manage the foreign

foreign exchange exchange
• Strict Act • Liberal act
• Criminal liability • Civil liability
• Few Transaction are • Few transactions

permitted→ other are prohibited other
prohibited are permitted
• No name for Transaction • Transaction are

divided in to
CAT/CUT
➢ Capital account transaction: -

• Capital account transaction means transaction which alters assets
and liabilities in India of a PROI.
• Assets or liabilities outside India of PRI.
➢ Current account transaction: -

• Other than Capital account transaction.
❖ Includes -
• Payment for foreign trade
• Short term credit
2|Page
• Interest on loan
• Net income for investment
• Remittance of living expenses → abroad
a) Parents
b) Spouse
c) Children
• Foreign travel, medical, education of following persons -
a) Parents
b) Spouse
c) Children
➢ Prohibited current account transaction: -
a) Payment for travel to Nepal and Bhutan.
b) Transaction with person resident in Nepal and Bhutan.
c) Remittance out of following income -
→ Lottery winning
→ Racing
→ Ridding
→ Other hobby
d) Remittance for purchase of -
→ lottery tickets
→ banned magazines
→ Football pools
e) Commission to joint venture/wholly owned subsidiary abroad for Export.
f) Commission on export under rupee state credit route except
commission upto 10% of invoice value of export of tea and tobacco.
g) Remittance of dividend where dividend balancing is applicable.
h) Payment related to call back services of telephones.
i) Interest income on fund held in non-resident special rupee account
scheme.
➢ Restricted current account transaction: -
❖ These transactions are permitted with approval of CG

• Cultural tours
3|Page
• Freight of vessel charted by a person a public sector undertaking
(PSU)
• Payment of import through ocean transport by government
department or a PSU on carriage insurance and freight basis and
other than free on board and FAS basis (free along side ship)
• Multimodal transport operation making remittance to their agent
abroad
• Container detention charge exceeding the prescribed rate
• Hiring charge of transponder by TV channel
• Prize money (sponsorship of sport exceeding US $ 100000 except
by)
a) State level sport bodies
b) National level sport bodies
c) International level sport bodies
• Advertisement in foreign print media by state
government or PSU exceeding US $ 10000 except
• Tourism
• FDI
• International bidding
• Membership of P&I club
➢ Permitted with the approval of RBI: -

• Gift or donation
• Private visit to any country except (Nepal and Bhutan)
• Going abroad for employment
• Emigration
• Maintenance of close relative abroad
• Travel for business or attending conference or trading
• Meeting medical expense cheque up abroad or attendant to a
patient
• Studies abroad
• US $ 250000 or specified amount whichever is higher
4|Page
➢ Permissible Capital Account Transaction: -
❖ PRI (Person Resident in India)-

S = Investment in foreign security
A = Remittance of Capital asset of PRI
L = Foreign currency loan in India or abroad
M = Maintenance of foreign currency account in India
I = Export/Import and holding of currency
G= Guarantee in favour of person Resident in India
O= Overdraft and loan to PRI
L= Loan and overdraft from PRI
I= Insurance policy from international corporation outside India
DE= Sale and purchase of foreign exchange derivatives in India as
abroad
Transfer of Immovable property outside India
❖ PROI (Person Resident Outside India): -

▪ Investment to the capital of a firm or PC or Association of
person
▪ Investment in Indian security
▪ Acquisition and transfer of immovable property in India
▪ Guarantee by Person Residence outside India
▪ Import/Export of foreign currency
▪ Deposit between PRI and PROI
▪ Foreign currency accounts in India
▪ Remittance of Capital assets in India
5|Page
➢ Prohibited Capital Account Transaction for a PROI: -
❖ PROI is not entitled to make investment in India, in any form In
any company, partnership firm or proprietary concern or in any
entity, which is engaged or proposed to engage in business of –
• Chit Funds, or
• Nidhi Company or
• Agricultural or Plantation Activities or,
• Real Estate Business, or Construction of farm houses or
• Trading in TDRs
➢ Acquisition and transfer of IP outside India by PRI: -
❖ PRI can -
1) Hold/Own/Transfer/ invest in IP outside India when he was
PROI or inherited from a PROI
2) Inheritance from
a) Person referred above
b) Form PRI who acquired on or before 8th July 1947 and hold
with the permission of RBI
c) PRI as per FEMA provision
3) Can hold out of fund held in RFC Account
4) Joint ownership with PROI provided but No outflow of fund
from India
• Company having overseas office -

▪ Can acquire for resident purpose of its staff or for business
purpose upto -
6|Page
Initially: - 15% of average annual sales of Indian enterprises
during last 2 financial year OR 25% Of net worth Which Ever Is
Higher;
Recurring expense: - 10% of Average annual turnover during

last 2 financial year
➢ Acquisition and Transfer of IP in India: -

• PROI can hold own transfer immovable property when he was
resident in India (PRI) or inherited from PRI.
➢ Acquisition and transfer of IP in India by NRI: -
a) Purchase of IP - other than agriculture land /plantation

property and farm house in India.
b) Transfer to PRI → any property to PIO/ NRI/ PROI → other
than agriculture land/ plantation property/ farm house.
c) Payment for immovable property - out of fund received
in India through normal banking channel debit to permissible
foreign currency account but except traveller’s cheque or by
foreign currency notes or other modes.
➢ Acquisition and transfer of IP by PIO: -
• Purchase - other than agriculture land/plantation/ farm house.

• Gift - other than agriculture land/ plantation/ farm house from
PRI/NRI/PIO
• Inheritance - Any IP from PRI/PROI who acquire as per FEMA
• Transfer - 1) Any property except agriculture land/ plantation/
farm house to PRI.
2) He may transfer any property including agriculture
land/ plantation/ farm house to PRI, who is Indian citizen.
3) Resident or commercial property → gift →
PRI/PIO/NRI.
7|Page
• Payment by acquisition of IP - Acquisition other than
agriculture land/ plantation/ farm house by way of normal banking
channel or debit to permissible account except traveller’s cheque
or by foreign currency or notes or other modes.
• Foreign Embassy / Diplomat / Consulate General - Can
purchase / sell immovable property other than Agriculture land /
plantation/ farm house in India after clearance from Government
of India and consideration through normal banking channels.
➢ Realisation, Repatriation and surrender: -
• Repatriate -
→ Bringing in to India and selling to authorized person or holding
in permissible account for discharge of debt or liability in foreign
exchange
• Manner of repatriation -
→ Selling to an authorised person
→ Holding in permissible account
➢ Surrender of foreign exchange: -
❖ Non-individual resident (PRI) →

▪ service outside India settlement of any lawful obligation or
income on assets or inheritance, settlement or gift - 7 Days
from received.
▪ Any other case – 90 Days from received.
▪ Foreign Travel (currency / coin) – 90 Days from return.
▪ Unspent Foreign Exchange (Travellers Cheque) - 90 Days
from return.
▪ Unused Foreign Exchange (Not utilised for purpose) – 60
Days from acquisition or purchase.
❖ Individual resident (PRI) →
8|Page
▪ Received / Realised / unspent / unused / currency notes /
Travellers’ cheque etc – 180 Days return to India.
➢ Possession and retention: -
→ Authorised person - without limit

→ Any person - without limit → foreign coin
→ PRI - Foreign currency notes → upto 2000 US $ or its equivalent
provided that such foreign exchange in form of currency notes, bank
notes or traveller’s cheque -
• Acquired While on a visit to outside India by way of payment
other than anything done in India
• Received from PROI visited India as an honorarium or gift or
lawful obligation.
• Unspent amount.
→ PRI but not permanent resident - Posses without limit if acquired

held by him when he was resident outside India.
➢ Remittance of assets: -
• Remittance outside India of fund in a deposit with a

bank/firm/company/provident fund/ insurance policy sale of
share, security other assets held person who are not NRI/PIO.
• ADs may allow remittance of assets by a foreign national
where -
b) Retired from employment in India
c) Non-resident widow (upto USD 1 million)
d) Balance held in bank account by foreign student
e) Not available to citizen of Nepal or Bhutan or PIO.
9|Page
➢ Remittance by PIO/NRI: -
→ Remittance upto USD 1 million prefer account submission of

documentary evidence
a) Fund held in NRO (Non-resident ordinary) account
b) Assets acquire under deed of settlement
➢ Adjudicating Authority: -
• Central government by notification in official gazette.

• CG must specify the jurisdiction.
• Adjudicate will imposed penalty after giving OOBH.
➢ Special director: -
• Central government by NIOG
• To hear appeal against the order of adjudicating authority
• Appeal against the order of assistant director or deputy director
• Appeal within 45days
• Extension may be granted (without limit)
➢ Appellate tribunal: -
• Central government – NIOG
• Appeal against AA/SD
• Appeal against special director (other than assistant and deputy
director)
• Bench – Chairperson with one or more Members.
• Appellate Tribunal sit ordinarily at New Delhi.
• Chair person who is or has been or qualified to be a Judge of High
Court
→Term 5 years or 65 years of age (whichever is earlier)
• Member → is/has been/ qualified to District Court Judge
→Term = 5 years or 62 years of age (whichever is earlier)
10 | P a g e
➢ Appeal to High Court: -
→ High court - within 60 Days + question of law
→ Extension - 60 days
➢ Director of enforcement: -
• Central Government can establish for purpose of enforcement.
➢ Investigation: -
• Director of enforcement and other officers below rank of Assistant
Director.
• CG may also authorize officers not below rank of secretary to GOI.
➢ Compounding and contravention: -
→ Voluntary admitting the contravention, pleading guilty and seeking

redressal.
→ Application to RBI or Electorate General.
➢ Procedure: -
• App + fees of ₹5000 DD (Demand Draft) in favour of RBI.
• Examination of application
• May call for any information
• Order within 180days from application
• Factor to be considered -
a) Amount of unfair gain
b) Loss to any authority/exchanges
c) Economic benefits accrued
d) History of non-compliance
e) Disclosure of facts
• No compounding if appeal has been filled to SD/AT
• Similarly, contravention cannot be completed for a period of 5year
from earlier compounding.
11 | P a g e
NOTES
12 | P a g e
ECONOMIC BUSINESS AND COMMERICAL LAW
CS SHUBHAM ABAD
CS EXECUTIVE NEW SYALLBUS
Foreign contribution: -
▪ Donation, delivery or transfer made by any article (except gift upto ₹25000)
or any currency, or any security and interest accrued or income there on.
Foreign source: -
▪ Foreign citizen.
▪ Foreign trade union.
▪ Foreign trust.
▪ Foreign society.
▪ Company under company act where majority capital is held by one or more
foreign citizen, trust, society foreign company, etc.
▪ Foreign company.
▪ Foreign corporation.
▪ Multinational corporation.
▪ International agency except world bank and international monetary fund
▪ Foreign Government
Page No. 1
UNIQUE ACADEMY FOR COMMERCE

CS SHUBHAM ABAD
Prohibition to Accept Foreign Contribution (Section 3): -

▪ Candidate for election.
▪ Member of any legislature.
▪ Political party or office bearers.
▪ Organisation of a political nature.
▪ Judge, government servant or employee of any entity controlled or
owned by Govt.
▪ Correspondent, columnist, cartoonist, editor, owner, printer or
publisher of a registered newspaper or audio-visual news or audio
news.
▪ Association or companies engaged in production or broadcast of
audio news or audio-visual news.
Permitted category: -
▪ By way of salary, wages or remuneration from any foreign source or
▪ Payment in ordinary course of international trade or commerce; or
▪ By an agent of a foreign source for any transaction with Central
Government or State Government
▪ Gift made to him as a member of any Indian delegation
▪ Gift from relative
▪ Remittance received as per FEMA provision
▪ Scholarship, stipend or any payment like nature.
Foreign Hospitality: -
▪ Any offer not being a purely casual one
▪ Made in cash or kind
▪ It includes the cost of travel, boarding, lodging, medical treatment.
Restriction on Acceptance of Foreign hospitality: -

▪ Office bearer of any Political party.
Page No. 2

CS SHUBHAM ABAD
▪ Member of a legislature.
▪ Government servant.
▪ Judge.
▪ Employee of any corporation owned or controlled by Government.
Power of Central Government with Respect of Foreign

Contribution: -
▪ Obtain certificate of registration from Central Government
▪ Validity upto 5 years
a) Application to Central Government in prescribe format
b) Incomplete application → Reject the application
c) If all conditions are compiled than Central Government can grant
certificate of registration within 90days of receipt of application
d) Failed to grant within 90days then communicate the reasons
Condition for getting COR application shall not be: -

a) Fictitious or benami
b) Has not mis-utilise the fund
c) Not been prosecuted or convicted for the activity which is opposed to
religious faith
d) Has not been prosecuted or convicted for creating communal tension
Acceptance of foreign contribution by any person is not

likely to affect prejudicially: -
a) Sovereignty and integrity of India

b) Public interest
c) Friendly relation with foreign state
d) Harmony between religious, social, castes.
Page No. 3

CS SHUBHAM ABAD
Acceptance of foreign contribution: -
a) Not lead to offence.

b) Not endanger life or physical safety
Suspension of Certificate: -
▪ Central Government may suspend for maximum 180 days
▪ May suspend if investigation is pending for cancellation of such
certificate
▪ Whose certificate has been suspended shall not receive any foreign
contribution during such period
▪ Shall not utilise fund without prior approval of Central Government
Cancellation of certificate: -
❖ CG has power to cancel if –

1. Certificate obtain on the basis of incorrect or false information
2. Violated terms and condition or provision of Act
3. Public interest
4. Holder not engaged in chosen field for 2 consecutive years or has becomes
defunct
5. Assets or foreign contribution in the custody of person specified by Central
Government
6. Authority shall manage the activities
Renewal of Certificate: -
▪ Within 6 months before expiry of period.
Page No. 4

CS SHUBHAM ABAD
Foreign contribution through Scheduled Bank: -
a) Reserve foreign contribution through one account

b) Utilise through one or more account
c) No other fund shall be deposited in such account
d) Source and account and purpose shall intimate to Central Government
Intimation to Central Government: -
▪ Person who has been granted a certificate is required to inform the amount,
sources and purpose to Central Government
Intimation by Candidate for Election: -

▪ Candidate for election shall intimate the amount, sources and purpose to
Central Government.
Inspection, Search and Seizure: -
▪ If provision has been contravened then inspecting officer may seize such
account and record and procedure before the court
▪ Office shall return such account and record within 6 months from seizure
▪ Before confiscation give OOBH
Penalty and Punishment: -
❖ Contravention of prohibitory order served -

✓ Sentenced upto 3 years or fine or both
❖ Accepting foreign contribution in contravention of the Act-

✓ Sentenced upto 5 years or fine or both
Page No. 5

CS SHUBHAM ABAD
Organisation of a Political Nature: -
❖ Central Government specify by order in the Official Gazette with

regards to-
a) Activities of the organisation
b) Ideology
c) Programme
d) Association with political party
❖ NOTES
Page No. 6

CS
CSSHUBHAM ABAD
Meaning of SEZ: -
• SEZ is a specifically delineated duty free encave and shall be deemed to be
foreign territory for purpose of trade operations and duties and tariffs.
Features of Act: -
• Establishment of SEZ.
• Setting up offshore Banking unit.
• Fiscal regime for developers of SEZ and unit’s setup.
• Establishment of authority.
• Designation of Special Courts and Single enforcement agency.
Objectives of Act: -
• Generation of additional economic activity.
• Promotion of goods and services.
• Promotion of Investment.
• Creation of Employment Opportunities.
• Development of Infrastructure facilities.
Board of Approval: -
• Constituted by CG by notification.
Page No. 1

CS
CSSHUBHAM ABAD
Power of Board of Approval-
✓ Approve, Modify, Reject with regards to Industrial, undertaking

license, Establishment of SEZ, Authorized operations, Foreign
Collaboration and FDI, Providing Infrastructure Facilities.
✓ Suspension of Letter of Approval.
✓ Disposal of Appeals.
✓ Other function assigned by CG.
❖ NOTE –
1. Board of Approval delegate power and functions to Development
Commissioner.
2. Board of Approval is bound to direction of CG.
Suspension of Letter of Approval: -

• Board can suspend LOA granted to developer for Whole or Part of area
but not more than 1 year.
• Board may appoint Administrator to discharge the functions of suspension.
❖ Following situations suspension may take place –
✓ Developer is unable to discharge functions or duties.
✓ Persistently defaulted in complying with direction.
✓ Violated the terms and conditions.
✓ Unable to discharge function due to bad financial status.
• Suspension can only be done after serving 3 month’s notice.
Approval Committee: -
• Constituted by CG for every SEZ by notification.
❖ Power and Functions –
✓ Approve Import or Export.
✓ Approve Rendering of Services.
✓ Approve, modify or reject prospal for SEZ units.
✓ Monitor and supervise compliance of conditions.
✓ Perform such other functions given by CG or SG.
Page No. 2

CS
CSSHUBHAM ABAD
Development Commissioner: -
• Appointed by CG for one or more SEZ and such officers and other
employees.
❖ Functions –
✓ Guiding Entrepreneurs.
✓ Taking steps for promoting export.
✓ Co-ordination with SG or CG.
✓ Monitor performance of SEZ units and developer.
✓ Other functions assigned to him by CG or Board of Approval.
SEZ Authority: -
• Constituted by CG for every SEZ by notification.
❖ Functions –
✓ Development of Infrastructure.
✓ Promoting Exports.
✓ Review functions and performance.
✓ Levy or service charge or fees for use of properties.
✓ Performing such other functions.
• Directions given by CG are binding on them.
Returns and Reports: -

• Authority shall furnish to CG after end of financial year showing true
and full accounting activities, policy and programmes.
• Copy of such report shall be laid before each House of Parliament.
Establishment of SEZ: -
• Central Government
• State Government
• Central and State jointly
• Any other person.
❖ Note- SEZ can be setup by Foreign companies.
Modes of Applying for SEZ: -
Page No. 3

CS
CSSHUBHAM ABAD
❖ Proposal by a Person-
1. Proposal to SG
2. Proposal to Board
• Person should identify area and then should make proposal to SG or directly to
Board.
SG will forward
It may either of
proposal to BOA
the following
with
Recommendation
s
Approve Modify Reject
If Proposal
Without With Reject

Modification Modification
Communicate Communicate to concerned Record reasons in writing

to CG. person and then board will and communicate to
communicate to CG. concerned person
1. CG will issue ‘Letter of Approval.’

2. Concerned person will be treated as ‘Co- Developer’.
Page No. 4

CS
CSSHUBHAM ABAD
Proposal by SG: -
• SG identify area and forward proposal to BOA
❖ Board of Approval may-

✓ Approve
✓ Modify
✓ Reject.
If Proposal
Without With Reject

Modification Modification
Communicate Communicate Record reasons in

same to CG. same to SG and writing and
the board communicate to
communicate to concerned person
CG
1.CG will issue ‘Letter of Approval’ to SG.

2.Concerned person will be treated as ‘Co- Developer’.
Setting up by CG: -
❖ CG can set up and notify SEZ without consulting to SG or Board.
Page No. 5

CS
CSSHUBHAM ABAD
Demarcation as Processing and Non- Processing Area: -
❖ Processing -
✓ Manufacturing of Goods or rendering of services.
✓ Trading or Warehousing purpose.
❖ Non- Processing -processing -
✓ Other than those of specified activities.
Setting up Units in SEZ: -

• Any person who intends to set up unit submit prospal to Development
Commissioner then Development Commissioner will propose to Approval
Committee.
❖ Approval Committee May - Committee may-
✓ Approve
✓ Modify
✓ Reject.
• Development Commissioner may after approval grant LOA to person
concerned.
• Person Aggrieved by order of Approval Committee may appeal to BOA.
Cancellation of Letter of Approval: -

• Approval committee can cancel after OOBH.
❖ Reason-
• Persistently contravened any terms and conditions or obligations.
❖ Withdrawal of Benefit-
• Don’t entitled to any exemption, benefit, concessions.
❖ Appeal-
• Board.
Page No. 6

CS
CSSHUBHAM ABAD
Setting up and Operation of offshore Banking unit: -

• An offshore Banking can be set up at SEZ.
• Application to RBI.
Facilities and Incentives to SEZ: -

• Duty free Import / Domestic procurement of goods, operations.
• 100% Income Tax exemption on export income for SEZ units.
• Exemption From MAT.
• Exemption from Central sales Tax, Service Tax, State Sales Tax.
• Single window clearance for Central and state.
NOTES
Page No. 7

CHAPTER 12 COMPETITION ACT, 2002
Competition: -
• Situation in a market in which firm or sellers independently

strive for the buyer’s patronage in order to achieve a
particular business objective.
OR
• Competition is a process of economic rivalry between market
players to attract customers.
Importance of competition: -
• No competition, No progress.
• Customer have the access to the widest range of product
and services at competitive price.
• Producer will be benefitted by innovation, reducing cost and
meeting consumer demand.
• Competition does not lead to creation of monopolies.
• Economic growth of the country.
• Improved quality of goods.
MRTP Act 1969 (objective): -
• Prevention of concentration of economic power to the
common detriment.
• Control of monopolies.
• Prohibition of monopolies and restrictive trade practices.
• Protect consumer interest.
CS SHUBHAM ABAD 1
Objective of MRTP: -
• Prevention of concentration of economic power.
• Control of Monopolies.
• Prohibition of monopolies and restrictive trade practices.
Unfair Trade Practices: -

• Trade Practices which uses unfair method to promote the
sale, use or supply of any goods and services and
Includes-
a) Misleading Advertisement
b) False representation
c) Bargain Sale
d) Offer gifts with the intention of not providing
them.
Restrictive Trade Practices: -

• Horizontal Fixation of Price.
• Vertical Fixation of price and re-sale price maintenance.
• Allocation of market between purchases.
• Boycott.
• Exclusive Dealing contract.
• Tie – up arrangement.
Recommendation of Sachar Committee: -

• Appointed by Government of India in August, 1977.
• Chairmanship: - Justice Rajinder Sachar.
Recommendations
a) Protect the consumer from unfair practices.
b) Advertisement and sale promotion should not
deceive consumer.
c) Seller should be obliged to speak the truth.
d) Prevent false and misleading information.
e) Fictitious bargain was also a form of deception.
CS SHUBHAM ABAD 2
Monopolies Trade Practices: -

• Single Undertaking in the market or hold very large
portion of the market.
• Power to control the price or supply of the goods or
services.
Difference Between MRTP and Competition: -
MRTP COMPETITION
1. First competition law. 1. Repealed and
2. Relates to Pre- replaced MRTP Act.
Liberalization period. 2. Post Liberalization
3. Objective is to restrict period.
monopolies and 3. Prevention of any
restrictive trade trade practices which
practices. have AAEC
4. Dominant Position is (Appraisable Adverse
bad. Effect on
5. No penalties are Competition).
involved. 4. Abuse of dominant
6. Restrictive Act. position is considered
bad.
5. Penalties are involved
for contravention.
6. Facilitative in Nature.
Objective of Competition Act: -

• Prevent practices which have AAEC.
• Promote and sustain competition.
• Ensure freedom of trade.
• Protect Consumer’s interest.
CS SHUBHAM ABAD 3
Definitions: -
Cartel: (Injury to consumer and economy AAEC- Void) -
Producer
Seller
Association
Traders
of
Distributor
Service
Cartel Production
Provider
Limit Trade
Who By
control Distribution
Agreement
Attempt to
Sales
control
Price
International Cartel: -
▪ Cartel affects markets of more than one country.
OR
▪ Not all enterprises are based in same country.
CS SHUBHAM ABAD 4
Formal
Agreement
Arrangement
Writing
Undertaking
Enforceable
Action
Unenforceable
Acquisition: -
Shares
Voting Rights
Directly Acquiring Assets

Acquistion
Agreeing to Control over
Indirectly
acquire management
Control over
assets
Enterprise: -
• Any person or Government department (Non-Sovereign
Activities)
CS SHUBHAM ABAD 5
Engaged in-
a) Production of goods or
b) Provision of services or
c) Investment or
d) Acquiring holding, underwriting or dealing in shares,
debentures or security.
Government Department: -
• Sovereign function.
• Engaged in atomic energy.
• Carrying non-sovereign function - Enterprise.
Relevant Market: -
• Product Market • Geographical Market
1. Comprising all those products 1. Area in which goods or

or services are regarded as services are distinctly
interchangeable or homogeneous
substitutable by the consumer
2. Substitutable is with regards 2. Example- Local Market,

to: - National Market.
a) Price
b) Features
c) Intended use (Enduse)
Anti-Competitive Agreement: -
• Any agreement by enterprise or associate or person or
association of person who by agreement or control over-
a) Production
b) Supply
c) Acquisition
d) Distribution
e) Storage
CS SHUBHAM ABAD 6
Of Goods and Services which have caused or likely to

AAEC and such contract shall be void.
Types of Anti-Competitive Agreement: -
Horizontal Agreement Vertical Agreement
Agreement between 2 or Agreement between 2 at a

Dealing in similar kind of different level of Production.
Product. If it causes AAEC then it Will
Ex: - Two M/F, Distributors, be treated as anti-
Retailer. competitive
Agreement.
Price Fixation: - Tie in arrangement: -

Determination of purchase or Requires a purchaser to
Sale price. purchase some other goods
also.
Output/ Production Control: Exclusive Supply
Limits or controls over the Agreement:-
Production, supply, market Restriction from acquiring or
Investments. dealing in goods other than
Those of seller.
Market Sharing: - Exclusive Distribution
Divide the market on the basis Agreement: -
of geographical areas or on Limit, restrict or withhold the
the basis of customer output or supply or Allocates
the area or market
Bid Rigging: - Refusal to Deal: -
1. Parties engage in similar Restrict or likely to restrict
goods or services tries any person from whom the
to eliminate or reduce goods can be sold or
the competition on bids. brought.
2. Collusion or act in
concert by Prospective
bidders.
3. Bid Rigging is anti-
competitive
CS SHUBHAM ABAD 7
(Burden of proof is on
Defendant)
Methods of Bid Rigging: - Resale Price Maintenance: -
✓ Agreement to submit Price for resale is stipulated
identical Bids by the seller However
✓ Agreement as to who agreement Can specify that
shall Submit lowest bid the Prices lower than those
prices can be charge price
✓ Agreement not to bid can be charge.
against Each other
(Burden of proofs on
✓ Squeeze out outsider Plaintiff / Complainant)
bidder Each other
✓ Agreement on common
norms.
Abuse of Dominant Position: -

• Position of strength in the relevant market which enables it to-
a) Operate independently.
b) Affects its competition.
Prohibition on Abuse of Dominant Position: -
• Deemed to abuse its position if-
a) Directly / indirectly impose unfair practices for purchase or sale
of goods.
b) Predatory Pricing-
• Selling below the cost price with a view to reduce the
competition.
c) Limit or restrict production of goods or services.
d) Limit or restrict any technical or scientific development related
to goods and service.
e) Denial of market access.
f) Uses its dominant position to enter into other relevant market.
g) Applying dissimilar condition to similar transaction.
CS SHUBHAM ABAD 8
Combination: -
Amalgamation Merger
Control over Control over

assets management
Acquisition
Shares Voting Rights
of
• Government control combination to promote competition.

• Combination having AAEC is prohibited and void.
Notice of Combination: -
• Serve notice disclosing the details of combination to CCI
within 30 days of approval of the proposed combination.
(Exempted from 30 days’ notice but filing is compulsory.)
• When Notice is required: -
Particular Assets Turnover

Enterprise INR 2000cr INR 6000cr
Level
In India
Group INR 8000cr INR 24000cr
Level
Particular Total In India Total In India

Enterprise USD 1 INR USD 3 INR
Worldwide Level Billion 1000cr Billion 3000cr
CS SHUBHAM ABAD 9
With India
Leg
Group USD 4 INR USD 12 INR

Level Billion 1000cr Billion 3000cr
• Provision not apply if shares subscription or finance facility is

provided by public financial Institution, Foreign Institutional
Investor, Bank, etc.
Particulars Date of Exemption Period of

Notification Exemption
De-Minimis March 4, Acquisition Exemption for 5
exemption 2016 where the years.
assets of target
co. is not
exceeding
Rs.350cr and
Turnover not
exceeding
Rs.1000cr
Regional Rural Bank August 10, CG issued Exemption for 5
2017 Notification years.
Reconstruction or August 30, Reconstruction Exemption for 10

Amalgamation of 2017 transfer of the years.
Nationalized Banks whole or any
part thereof and
amalgamation
of nationalized
bank.
Central Public Sector Nov 22, Combination Exemption for 5
Enterprises 2017 along with their years.
(Gas and oil sector) wholly or partly
owned
subsidiaries.
CS SHUBHAM ABAD 10
Procedure: -
• Once the thresholds limit is met.
• Notify to CCI within 30 days of approval (Exempted for the
period of 30 days.)
• CCI scrutinize the notice for defects or incompleteness.
• If found defective it may ask to remove the defects.
• CCI ask the parties to publish the details to invite public for
objection.
• Objection within 15 days from publishing.
• CCI believes combination: -
• Will not adversely affected - Approve
• Will be adversely affected - Hold the Transaction Null and void
CCI (Competition Commission of India): -

• Established by CG by NIOG.
• Head Office – New Delhi or at any place decided by CG.
• Commission may establish its office at other place in India.
• CCI is a body corporate having perpetual succession, common seal
and hold property.
• Proceeding of CCI will not be invalidated by subsequent discovery
of any vacancy, defect in constitution or appointment.
Vacancy: -
• Death / Resignation / Removal - CG + Selection Committee
• Other than Death / Resignation /
Removal but Inability of Chairman - Then Senior Member Act as Per
Term.
Composition of CCI: -
• One Chairman
• Min – 2 and Max – 6 Members
• Whole Time Basis.
CS SHUBHAM ABAD 11
• Appointment by CG with consultation with Selection

Committee.
• Vacancy in the position of chairman then Senior Most Member
will take the charge until Chairman is appointed.
• Vacancy caused by Death, Resignation or Removal shall be filled
by CG with consultation with Selection Committee.
Term: -
• 5 years OR 65 years whichever is Earlier.
Qualification of Chairman and other Members: -
❖ Person of –
a)Ability
b)Standing
c)Integrity and
d)Professional experience of at least 15 years in law, finance,
accountancy, economist, etc.
• Reappointment of Chairman and Member is possible.
Selection Committee: -
• Consist of: -
✓ Chief Justice of India or his nominee (Secretary of Ministry of
Corporate Affairs)
✓ Secretary of Ministry of Law and Justice – Members
✓ 2 other expert having Special Knowledge and Professional
experience in International trade, economics, business,
commerce, etc.
Resignation of Chairman and Member: -

• Notice in writing.
• Effective from the day when CG approves resignation.
• If CG do not approve his resignation – Effective from earliest of: -
• Expiry of 3 Months from Notice OR Appointment of his Successor
(New Appointment)
CS SHUBHAM ABAD 12
Removal of Chairman or Member: -

• CG may remove if-
a) He is adjudged as an Insolvent or
b) He has engaged during his term in any paid employment.
c) Convicted in offence involving Moral Turpitude.
d) Acquired financial or other interest which affects his function
(After inquiry by Supreme Court).
e) Abused his position which affects public interest (Inquiry shall
be carried out by Supreme Court).
Restriction on Employment: -
• Chairman or Member cannot be appointed in any enterprises which
was party before the Commission for 2 year from cessation of office.
• Restriction Not Apply-
a) CG / SG / LA (Local Authority).
b) Corporation established under Special Act.
c) Government Company.
Appointment of DG (Director General): -
CCI
• Director General and Other Officer includes AD – Additional Director,
JD – Joint Director General, DD – Deputy Director General
• Appointed by CG by NIOG.
Assist CCI in Assist DG and

Function conducting Inquiry perform other
And Investigation. functions of DG.
Qualification 1. Ability, Integrity, Standing and having

Knowledge of trade, law, economics,
Finance, accounts, etc.
2. Commission (CCI) may also appoint
Secretary.
CS SHUBHAM ABAD 13
Power of DG: -
• Issue of summon to any person and examination him on oath.
• Discovery and production of Document.
• Receiving evidence on affidavit.
• Examination of witness.
• Requisition any public record.
Duties of CCI: -
• Eliminate practices having adverse effects on competition.
• Promote and sustain competition.
• Protect the interest of consumer.
• Ensure freedom of trade.
Inquiry into certain agreement and dominant
position: -
➢ Inquiry: -
• Suo Moto
• Receipt of any Info. From any person, consumer, trader, or
association.
• Reference made by CG / SG or Statutory Authority.
Agreement has AAEOC: -

• Creation of barriers to new entrants.
• Driving existing competition out of market.
• Foreclosure of competition.
• Accrual of benefits to consumer.
• Improvement in production or distribution of goods and
provision of services.
Factors to be considered whether an Enterprises

enjoy a dominant position: -
• Market share, size and resources of enterprise.
• Economic power including competitive advantages over
competitors.
CS SHUBHAM ABAD 14
• Dependence of consumer.
• Market Structure and size of market.
• Relative Advantage.
Procedure for Investigation of Combination: -

• CCI thinks combination is likely to cause AAEOC.
• Show Cause Notice to parties.
• After response of the parties CCI may call for the report of
DG.
• Direction to parties within 7 days of response or receipt of
report whichever is later.
• Direct the parties to publish notice within 10 days from
directions.
• Objection within 15 days by affected person.
• CCI may call additional Info. Within 15 days of filing of written
objection.
• Provide additional Information within 15 days.
• Final order within 45 days from filing of further information.
Order of Commission: -
a) - In Case of Anti-Competitive Agreement and Dominant
Position:
• Discontinue such agreement (cease and desist order.)
• Modify the agreement.
• Can impose the penalty.
• Direct division of an enterprise enjoying dominant
position.
• Abide the order passed by CCI.
• Interim order- Temporarily restrain any party from
continuance of offending act.
b) In case of Combination -
• Direct that combination shall not take effect.
CS SHUBHAM ABAD 15
• Direct that acquisition, control, merger shall not take

effect.
• Direct to carry out modification.
• Carry out such changes within prescribed limit.
• If modification is not carried out then deemed to have
AAEOC.
• Parties submit the amendment to the modification within
3o days from modification.
• If commission agrees the amendment then CCI approve
the combination.
• If commission does not accept the amendment then
parties shall allow further period of 30 days for accepting
the amendment where parties failed to accept the
modification within 30 days, deemed to be adverse Effect.
• If commission does not issue direction on expiry of 210
days from filing of notice, then commission shall be
deemed to have been approved by commission.
Who may Appear Before Commission: -

• Complainant.
• Defendant.
• Director General or
• Authorized person i.e. PCS / PCA / PCWA / Advocate.
Appellate Tribunal (AT): -

• CG shall establish CAT (Competition Appellate Tribunal).
• Now Appeal refer to NCLAT.
• Appeal within 60 days from order.
• Extension if there was sufficient cause.
• Dispose of appeal within 6 months.
• Appeal against NCLAT – Within 60 days to Supreme Court.
• Further Extension 60 days.
Competition Advocacy: -
• CG / SG may seek opinion of CCI while formulating policies on
competition.
CS SHUBHAM ABAD 16
• Government make reference to CCI to give its opinion.

• On receipt of reference CCI give its opinion within 60 days.
• CG / SG will proceed with formulation of the policy.
• Role of CCI is advisory and opinion shall not be binding upon
CG / SG.
• CCI is also empowered to take suitable measure.
a) Promotion of competition advocacy.
b) Creating awareness about the competition.
c) Imparting training about the competition.
Competition Fund: -
• Establish by the Act for meeting the establishments and other
expenses of commission.
• Credit to the fund: -
a) Government Grants.
b) Fees received under the act.
c) Interest on the amount accrued.
• Debit to the Fund: -
a) Salaries to chairperson.
b) Administrative expenses of the fund.
c) Other Expenses for discharge of its function.
Accounts and Audit of CCI: -

• Proper records shall be maintained by CCI.
• Annual Statement shall be prepared in prescribed form.
• C & AG specify the intervals for auditing.
• Audit expenses shall be paid by CCI.
• Audit Report forwarded to CG and laid before parliament.
Power of CG to Supersede Commission: -

• CG can supersede by NIOG if-
a) CCI unable to discharge its functions.
b) Default in complying with direction.
c) Default in discharging of function.
d) Public Interest.
CS SHUBHAM ABAD 17
Effect of Supersede: -
a) All member shall vacant the office.
b) All the power, functions shall be discharged by CG or
authorized person.
c) All the properties vest in CG until CCI reconstituted.
d) Reconstitution within 6 months from the date of order by a
fresh appointment of its chairman.
Note: -
• All the officers of CCI shall deemed to be public Servant.
• No suit or legal proceeding shall be i.e. against CCI or its member
for anything which is done as intended to be done in good faith.
• If officers of CCI vacates the office because CCI is unable to
discharge the function shall not result in disqualification.
Penalties: -
1. Contravention of order of commission or failed to pay penalties

under this act -
• Imprisonment up to 3 years or Fine up to 25 cr or both.
2. Penalty for false statement -

• Penalty Min- 50 lakh it may extend to Rs.1cr
3. Contravention by Companies -
• Penalty to company and person in charge.
• If such persons prove that contravention was committed
without his knowledge then he shall not be liable.
• Director / Manager / Secretary shall also be liable if
contravention has taken place with the consent of such person.
CS SHUBHAM ABAD 18
CS SHUBHAM ABAD
CS EXECUTIVE NEW SYLLABUS
13
CONSUMER PROTECTION ACT, 1986
➢ Definitions: -
1. Advertisement -
• Audio or video publicity
• Representation endorsement or pronouncement made by light,
sound, smoke, gas, print, electronic media, internet or website and
• Includes notice, circular, label, wrapper, invoice or other documents.
2. Appropriate Laboratory -
• Laboratory or an organization specified by Central Government or
State Government (subject to guidelines issued by Central
Government)
• Established by or under any law for the time in force maintained,
financed or aided by Central Government or State Government.
3. Complainant -
❖ Complainant means -
• Consumer
• Registered or voluntary consumer association
• Central Government or State Government
• Central authority
• One or more consumer having the same interest
• Legal heir or legal representative in case of death of consumer
• Parent or legal guardian in case of consumer is minor
4. Complaint -
• Allegation made in writing by complainant for obtaining relief against the
manufacturer, seller on following grounds -
Page |1
Page No. 1

CS SHUBHAM ABAD
▪ Unfair contract or unfair and restrictive trade practices adopted by trader
a) Goods suffer from one or more defects.
b) Services hired suffer from deficiency in any respect.
c) Trader or service provider has charged excess price -
i. Fixed under any law or
ii. Displayed on the goods or
iii. Agreed price
iv. Displayed on price list
d) Hazardous goods offered for sale without following minimum
standard or unsafe goods offered for sale.
e) Hazardous services offered for sale which is injurious to health or
property.
5. Consumer -
• Person who consume the goods or avail the services
• It includes buyer (with permission) of goods or beneficiary of services
• For consideration has been paid or promised or partly paid and partly
promised
• However, consumer does not include the person who buys the goods and
avail the services for commercial purpose -
▪ Commercial purpose means earning large scale of profits
▪ Commercial purpose excludes a person who buys goods for
earning of his livelihood or by means of self-employment
Example: -
a) Purchase of machine for earning his livelihood would be a consumer
even if such person took the assistance of one or two person.
b) Tractor used primarily to till the hand and let out in ideal time would be
a consumer.
c) Widow of deceased policy holder would be a consumer.
d) Tenant shall be treated as consumer if there was no provision in
respect of cleaning, repairing and maintaining the building.
6. Goods -
• Goods define under SOGA.
Page |2
Page No. 2

CS SHUBHAM ABAD
• Every kind of movable property other than the actionable claims and money
and includes stock, shares, growing crops, grass and things attached to or
• farming part of land which are agreed to serve before sale or contract of
sale.
• Shares before allotment cannot treated as goods.
7. Consumer Dispute -
• Person against whom a complaint has been made denies the allegation.
8. Rights of Consumer -
• S – Safety
▪ Protection against wrong marketing.
• I – Information
▪ Information about quality, quantity, purity, standard and price.
• C – Choose
▪ Can access to a variety of goods.
• H – Heard
▪ Consumer will receive due consideration at appropriate forum.
• E – Education
▪ Right to consumer awareness.
• R – Redressal
▪ Consumer complaint shall be resolved within time.
9. Defects -
• Means fault, imperfection, shortcoming -
• In quality, quantity, purity, standard which is required to be maintained
under any law.
10. Deficiency -
• Fault, imperfection, shortcoming in -
a) Quality, quantity, potency, purity or standard which is required to be
maintain under any law contract (express or implied) includes
b) Act of negligence which cause loss or injury to the consumer and
Page |3
Page No. 3

CS SHUBHAM ABAD
c) Deliberate withholding of relevant information by such person.
11. Endorsement -
• In relation to an advertisement means -
a) Any message, verbal statement, demonstration or
b) Depiction of the name, signature, likeness or other identifiable
personal characteristics of an individual or
c) Depiction of the name or seal of any institution that reflect opinion
finding or experience of the person.
Example: - Kurkure
12. Harm -
• Relation to product liability includes -
a) Damages to any property other than product itself
b) Personal injury, illness, mental or emotional distress or
c) such other loss of consortium.
• It excludes
a) Any damages to product itself
b) Damages to property on account of breach of warranty condition or
other commercial of economic loss.
13. Manufacturer -
• Person who makes any goods or parts
• Assemble any goods or parts
• Put or cause to be put his own mark on any goods.
14. Misleading Advertisement -

• Falsely describe such product or service
• Or give false guarantee or is likely to mislead the consumer as to nature,
quality or quantity
• Unfair trade practices
• Deliberately conceal important information.
Page |4
Page No. 4

CS SHUBHAM ABAD
15. Person -
• Individual
• Firm (registered or not)
• Hindu Undivided Family)
• Co-operative society
• AOP
• Corporation, company or BOI whether incorporated or not
• Any artificial judicial person.
16. Product -
• Article, goods, substance or raw material or any extended cycle of such
product
• Which may be in gaseous, liquid or solid form
• And capable of delivery either as wholly assembled or as a part
• Excludes human tissues, blood, blood products and organs.
17. Product Manufacturer -

• Person who -
a) Makes any product or part
b) Assemble parts
c) Put or cause to be put his own mark on any products
d) Makes a product and sells, distribute, lease install, prepares, packages,
label maintain such product or
e) Design, products, fabricates, constructs or re-manufactures any
product.
18. Restrictive Trade Practices -

• Price or its condition of delivery or to affect flow of supplies in Trade
practices which leads to bring about manipulation of the market
relating to goods or services and includes
a) Delay beyond the period agreed by a trader in supply which has led or
is likely to lead to rise in the price.
Page |5
Page No. 5

CS SHUBHAM ABAD
b) Any trade practices which require a consumer to buy, hire any goods
and services as condition precedent for buying, hiring or availing of
other goods.
19. Unfair Contract -
• Contract between manufacturer or trader or service provider and consumer
which cause significant change in rights of consumer.
• Which includes –
a) Charging Excessive security deposit.
b) Imposing Misappropriate penalty.
c) Refuse to accept early repayment of debt
d) Any other unfair terms, penalty.
20. Unfair Trade Practices

• For the purpose of sale, use supply of goods and services adopts any
unfair method or deceptive practices namely –
i. Making any false statement relating to quality, quantity, trade, etc.
ii. False promise to replace, repair, and maintain the product.
iii. Materially mislead the public about the price.
iv. Gives false or misleading facts on the product.
v. Permitting the publication of any advertisement at a bargain price but
that are not intended to be offered for sale.
vi. Offering gifts with the intention of not providing them.
vii. Hoarding or refusal to sell.
viii. Manufacturing of spurious goods.
ix. Not issuing bill or cash memo or receipt.
21. Spurious Goods -

• Means such goods which are falsely claimed to be genuine.
Page |6
Page No. 6

CS SHUBHAM ABAD
➢ Consumer Protection Council: -
Central Consume State Consumer Protection District Consumer

Protection Council Council Protection Council
✓ by Established ✓ Established by State ✓ Established by State

Central Government. Government.
Government.
✓ Advisory ✓ Advisory Council. ✓ Advisory Council.

Council.
✓ At least one ✓ At least 2 meeting in a ✓ At least 2 meeting in a
meeting in a year. year.
year.
✓ Minister in ✓ Chairperson→Minister in ✓ Chairman→collector of

charge of charge of consumer District and such Other
consumer affairs in State official or non-official
affairs shall be Government and such member as may be
chairperson and Other official or non- prescribed.
such other official member not
official or Non – exceeding 10 may be
official members nominated by Central
as may be Government
prescribed.
Page |7
Page No. 7

CS SHUBHAM ABAD
➢ Central Consumer Protection Authority (CCPA): -
• Established by Central Government.

• To regulate matters relating to -
a. Violation of rights of consumer
b. Unfair trade practices
c. Misleading advertisement which are prejudicial and
d. Protect, promote and enforce the rights of consumer
• It consists of chief-commissioner and such other commissioner as may
be prescribed appointed by Central Government
• Headquarter→ Delhi
• Qualification, appointment and salary as may be prescribed by Central
Government.
• District Collector may on a complaint or on a reference made by him as
Central Authority , may hold an enquiry and submit report to central
authority.
➢ Vacancy not to Invalidate Proceeding of Central Authority: -
• Any vacancy, defect in constitution of central authority or

• Any Defect in the appointment of chief commissioner or commissioner
or
• Any irregularity in procedure shall not invalidate the proceedings of
central authority
➢ Power and Function of Central Authority: -
• Protect, promote and enforce the right of consumers.

• Prevent unfair and restrictive trade practices.
• Ensure no false or misleading advertisement is made.
• Ensure that no person takes part in false or misleading advertisement.
Page |8
Page No. 8

CS SHUBHAM ABAD
➢ Power of Central Authority to refer matters for Investigation: -
• Central Authority may after receiving any information or complaint or

direction from Central Government or its own motion.
• Central Authority → May Direct DG or District Collector for investigation.
• CA or DG or DC may call upon a person and also direct him to produce any
document or records.
• CA is satisfied that violation has made be may pass necessary order
including -
a. Recalling of goods or withdrawal of services.
b. Reimbursement of price to consumer.
c. Discontinuation of unfair or restrictive trade practices.
d. Give OOBH.
➢ Power to issue Direction and Penalties against False or
Misleading Advertisement: -
• CA is satisfied about misleading advertisement he may pass the order to

discontinue the misleading advertisement
• Penalty →First contravention – upto 10lakh
→ Subsequent contravention - upto 50lakh
• Jail upto 1 year for First Contravention.
• Jail upto 3 years for Subsequent Contravention.
• No endorser shall be liable if he has exercised due diligence to verify
the claim of product
➢ Factor Determining Penalty: -
• Population of affected areas.

• Frequency or duration of such offence.
• Gross revenue affected by such sale.
• Loss suffered to consumer.
Page |9
Page No. 9

CS SHUBHAM ABAD
➢ Search and Seizure: -
• DG or DC may -
i. Enter at any reasonable time into any such premises.
ii. Search for any document, record or article.
iii. Seize such document, record or article.
iv. Make a note of inventory of such record.
v. Require any person to produce any record register
• Seized document shall be return within 20 days after taking copies thereof.
• Sample can be sent to appropriate laboratory.
• Appropriate laboratory shall file report within 45 days from reference.
➢ Vexatious Search: -
• DG or other officers search or cause to be searched any premises or

• Seizes any records or document
• Without reasonable grounds for doing so shall be punishable with
imprisonment may extend to 1year and fine upto 10,000 or both
❖ Appeal against Central Authority may file to National Commission within 30

days from order of CA.
❖ District Consumer Dispute Redressal Commission: -
• Established by State Government for one or more state.

• It consists of a President and Mini - 2 Member and Maximum may be
prescribed
❖ Jurisdiction -
• Complaints were value of goods and services paid does not exceed 1 crore.
• Complaint shall be filed in a district commission where –
P a g e | 10
Page No. 10

CS SHUBHAM ABAD
a) Opposite party or
b) Each of opposite party reside or
c) Business or branch office is situated or
d) Cause of action arise
➢ Proceeding before District Commission: -
• Proceeding conducted by President and at least One Member sitting

together.
• Admissibility of complaints shall ordinarily decide within 21days.
• Pass necessary order
• Give OOBH.
➢ Reference to Mediation: -
• At the first hearing or at later stage may direct parties to given consent
within 5 days to settle their dispute by mediation if there exist element of
settlement by mediation.
• If parties agreed then than matter refer to mediation within 5 days of
receipt of such consent.
➢ Procedure on Admission of Complaint: -
• Receipt of complaint.
• Copy given to opposite party within 21days.
• Reply by opposite party within 30days or such Extension of 15days.
• If defect of goods cannot be determined sample may send to appropriate
laboratory.
• Appropriate laboratory may give report within 45days from reference.
• Complaint shall be heard on the basis of affidavit and documentary
evidence.
P a g e | 11
Page No. 11

CS SHUBHAM ABAD
• Dispose of the complaint –
▪ within 3 months from receipt of notice by opposite party if no test is
required.
▪ within 5 months if laboratory test is required.
Give OOBH.
➢ Review of Certain Case: -
• Own nation or on an application made by the parties within 30days from the
order.
➢ Appeal against District Commission: -
• Appeal to State Commission.

• Within 45days from order.
• Extension→ If sufficient cause.
• Deposit 50% of claim before appeal.
➢ State commission: -
• Established by State Government.

• Consists -
a. President
b. Mini - 4 member and maximum member specified by State
Government.
• Complaints where value of goods and services paid exceeds ₹1crore but not
exceeding 10 crore or Appeal against the order of district commission.
• Appeal to National Commission within 30 days (extension)
• Deposit 50% of the fees.
• Question of law.
• Dispose of appeal by State Commission or National Commission within 90
days
P a g e | 12
Page No. 12

CS SHUBHAM ABAD
➢ National Commission: -
• Established by Central Government.

• Consists → President and Mini - 4 Member and Maximum as may be
prescribed.
• Term → 5 years (President and member)
OR whichever is earlier
Age → President 70 year
→ Members 67 years
• Complaint if value exceed 10 crores
• Appeal against the order of State commission or Central Authority.
Note: - Appeal against National Commission – Supreme Court within 30 days.
➢ Mediation: -
• Establish by State Government to attach with every District Commission

and State Commission.
• Central Government can attach with National Commission.
• It consists such person as may be prescribed and shall maintain -
a. List of empanelled mediators.
b. A list of cases handled by the cell.
c. Record of proceeding and
d. Any other information as may be specified.
➢ Empanelled of Mediators: -
• National Commission, State or District Commission shall prepare a

panel of the mediators and attached to commission on the
recommendation attached to it.
P a g e | 13
Page No. 13

CS SHUBHAM ABAD
➢ Duties of Mediators and Panel: -
• Disclose any personal, professional or financial interest in outcome of

consumer dispute.
• Circumstances which give rise to a justifiable doubt as to his
independence or impartiality.
• Product liability.
• Liability of product manufacturer or service provider.
• Product contain or deficiency of services.
Note: - If any party thinks that mediation is not acting independently or

impartially then they can make an application to commission.
NOTE
P a g e | 14
Page No. 14

➢ Transfer: -
❖ Act of the parties: -

1. Testamentary Instrument: -
▪ Effective after death like will.
▪ Not covered in transfer of property act.
▪ Example: - will.
2. Non-Testamentary Instrument: -
❖ Inter vivos-
▪ Between two living persons.
▪ Covered in transfer of property act.
➢ Transfer
❖ Ownership: -
▪ Sale.
▪ Gift.
▪ Exchange.
❖ Interest: -
▪ Mortgage.
1
▪ Charge.
❖ Possession or rights: -
▪ Lease
▪ License
➢ Movable or Immovable property: -
❖ Movable property: -
▪ General Clauses Act – Property of every kind except
immovable property.
▪ Registration Act – Excluding immovable property but
includes Standing timber, growing crops and grass.
▪ Movable property is other than immovable property which include
standing, timber, growing crops, and grass.
▪ Not covered in transfer of property act.
❖ Immovable property
▪ Include land – benefit arising out of land.
▪ Things attached to earth.
▪ Permanently attached to anything which is attached to
earth.
▪ Cover in transfer of property act.
➢ Absolute Interest: -
▪ Complete interest.
▪ Consist of bundle of rights which include right to use, sell, lease,
mortgage, gift etc.
▪ Owner has absolute interest over the property.
2
❖ Reversion Interest: -
▪ Reversion means property comes to the original owner.
▪ Transfer of interest for specific period then interest cover back
with the original owner.
❖ Remainder Interest: -
▪ Means where property goes to the third party after specific
time.
➢ Vested Interest: -
▪ It does not depend upon the condition or if it depend upon the

condition such condition bound to be happen.
▪ Certain condition.
▪ Vested interest includes vested in interest as vested in possession.
▪ Transferable.
▪ Heritable.
▪ Cannot be defeated by death of transfer.
➢ Contingent Interest: -
▪ Transfer of interest which is based on happening or non-happening

of uncertain event.
▪ Uncertain condition.
▪ Incontinent interest condition may be precedent or subsequent
▪ Nontransferable.
▪ Non-heritable.
▪ Defeated by death of transferee
3
➢ Following Properties cannot be Transferred: -
❖ Specs Succession –
▪ Means Chance or Expectancy of succession.
▪ Any Person cannot transfer property on account of
expectation of property.
▪ Also Known as Heir Apparent.
❖ Right of Re – entry: -
▪ Right of re- entry belongs to lessor against the lessee for
breach of condition.
▪ Merely, right of re- entry cannot be transferred.
❖ Right to Easement: -
▪ Means right to use someone else’s property.
▪ It is personal benefit; hence it cannot be transferred to anyone
else.
▪ Eg: - Right to way, light, air, etc.
❖ Restricted/ Personal Interest: -
▪ Under Hindu Law, Co- Parcenery property cannot be
transferred.
▪ Under Muslim Laws, Waqf, shabait, Mutawali officer cannot be
transferred.
▪ Property delegated to God or Goddess are not transferable.
❖ Right to Future Maintenance: -
▪ It is person right of guarantee and cannot be transferred.
▪ Eg: - Widow of soldier.
❖ Right to Sue: -
▪ Mere right to sue cannot be transferred.
❖ Public office and Benefits: -
▪ Transfer of public officer and soldier, Stipends cannot transfer.
4
➢ Restrain on Alienation: -
▪ Any condition restraining further transfer absolutely such

condition shall be void
▪ However partial restrain is valid.
❖ EXCEPTION: –
▪ (a) Lesser can impose condition to prevent sub lease of property.
▪ (b) Women who is not a Hindu, Muslims or Buddhist shall not have
power to transfer the property during her marriage.
➢ Restrain on Enjoyment: -
▪ Any condition which restrain the enjoyment such condition shall be

void.
▪ However, any condition keep for the benefit of the property or a
to enjoy another property shall be valid.
➢ Transfer for Benefit of Unborn Person: -
▪ No person can directly transfer for property for the benefit of

unborn person.
▪ Transfer must be preceded by a little estate in a favor of a living
person.
▪ Whole of the remaining interest shall be transfer in the favor of
unborn person.
5
➢ Rule against Perpetuity: -
▪ Perpetuity means an uncertain continuing period.

▪ Also known as rule against remoteness or control by dead hand.
▪ Maximum perpetuity period is life time of one or more prior and
interest and minority period of unborn child.
❖ EXCEPTION: - transfer for the benefit of the public or
religion, knowledge, commerce, health, safety etc.
➢ Conditional Transfer: -
▪ Transfer of property is made subject to a condition is known as

conditional transfer.
▪ Conditional may be precedent or subsequent.
❖ Conditional precedent – Transfer take place after
fulfillment of condition.
❖ Condition subsequent – Property may be transferred
immediately but which is subject to fulfillment of condition.
➢ Condition Precedent: -
▪ First fulfillment the condition.

▪ Condition comes before the creation of interest.
▪ Vesting is postponed till the completion of condition.
▪ Interest once vested can never be diverted.
❖ Requirements of condition precedent: -
✓ Condition must not be impossible.
✓ Condition must not be forbidden by law.
✓ Condition should not defect the opposed to public policy.
6
✓ Condition should not be fraudulent.
➢ Condition Subsequent: -
▪ First transfer take place.
▪ It follows the vesting of an interest.
▪ Vesting is immediate.
▪ Interest even vested may be divested.
➢ Doctrine of Election: -
▪ Election means choosing between two rights where there is clear

intention that both were not intended to be enjoyed.
▪ It is person taking the benefits of an instrument must also bear the
burden.
▪ It arises only if transfer is made through the same document.
▪ Transferee cannot accept or reject the same agreement.
▪ If transferee reject the transfer than transferee will compensate
the disappointed person.
➢ Doctrine of Holding Out or Transfer By Ostensible

Owner: -
▪ Ostensible owner is not the real owner but one he acted with the
consent of real owner can transfer the property.
▪ Essential of the doctrine.
▪ Transfer by ostensible owner.
▪ Transfer is with the consent of real owner.
▪ Transfer is for the consideration.
▪ Transfer has acted in good faith.
7
▪ It protects the transferee against the real owner.
➢ Doctrine of Feeding the Grant Estoppel: -
▪ If any person fraudulently represent himself as an owner and

transferee acted in good faith then rights of transferee
cannot be impaired.
❖ Essential: -
▪ Fraudulent or erroneous representation.
▪ Transferee is acted in good faith.
▪ Transfer was consideration.
▪ Transferor subsequently acquired the interest.
▪ Transferee has not rescinded the contract.
▪ Transferor is entitled to transfer the property.
➢ Doctrine of Fraudulent Transfer: -
▪ Transfer with the intention to defraud of the creditors.

▪ Fraudulent transfer shall be voidable at the option of the creditors.
▪ Transfer is valid unless challenge by creditors.
▪ Transfer has to prove there was the fraudulent intention.
▪ If property is transfer to one of the creditors it will not amount to
fraud.
➢ Doctrine of Part Performance: -
▪ Transferor cannot take advantage on account of non- registration

❖ Essential condition: -
▪ Transfer of Immovable property
▪ Transferor and transferee signed the transfer deed and transferee
should have taken the possession
8
▪ Registration of transfer deed is pending
▪ Transferee must have fulfilled as ready to fulfill his part of
obligation
▪ Transferor is debarred from enforcing any right in respect of the
property
➢ Doctrine of Lis Pendens: -
▪ Lis pendens means pending litigation.

▪ During the pendency of suit the property cannot be transfer.
▪ If any person deals in such property then it should be subject of
the court order.
❖ Essentials: -
▪ Must be a suit or proceeding in a court and not be collusive.
▪ Dispute in litigation is related to right to immovable property.
▪ Transfer must effect the rights of other party.
➢ Sale: -
▪ Transfer of Ownership in exchange for a price.
❖ Mode of Transfer by sale: -
▪ Value > 100 – Registered Instrument
▪ Value < 100 – Registered Instrument or delivery of property.
➢ Exchange: -
▪ Two persons mutually transfer ownership of one thing for
ownership of another.
9
❖ Scope: -
▪ Property Exchange is Movable - Governed by SOGA
▪ Property Exchange is Immovable – Governed by TOPA
➢ Gift: -
▪ Transfer of certain Movable or Immovable property voluntarily

and Without consideration.
❖ Essentials: -
▪ Donor must be competent to transfer.
▪ Donee can even be incompetent person.
▪ No Consideration.
▪ Gift should be accepted by donee during the life time of
donor gift once accepted complete.
❖ Mode of Gifting: -
▪ Gift of Movable Property – Registered Instrument or
delivery of property.
▪ Gift of Immovable property – Registered Instrument
Only.
➢ Lease: -
▪ Transfer of a right to enjoy property in which possession is
always given to the transferee.
▪ Lease can be made for certain period which may be
definite no. of years, or Life or permanently.
▪ Transferor - Lessor
▪ Transferee – Lessee
▪ Lease can be terminated by any party.
10
▪ If contract does not contain termination period notice of 6
months is required in case of year to year lease and 15 days
in case of month to month lease.
❖ Mode of Leasing: -
▪ Lease > 1 year - Registered Instrument.
▪ Lease < 1 year – Oral agreement and must by delivery of
possession.
➢ Lease ➢ Rent
▪ Governed by TOPA ▪ Governed by Indian Easement Act.
▪ Involves Transfer of Interest. ▪ Not Involve Transfer of interest.
▪ Right of possession. ▪ Right to use.
▪ Can be transferred ▪ Cannot be transferred.
▪ Possession is transferred. ▪ Possession is not transferred.
➢ Mortgage: -
▪ Transfer of Interest in immovable property for the purpose of
securing payment of money advanced or to be advanced.
▪ Transferor is called a Mortgagor.
▪ Transferee is called a Mortgagee.
❖ Types of Mortgage: -
Simple Mortgage –
• Personal liability to repay debt.
• No transfer of possession.
11
• Default – Remedy by way of selling property after obtaining order
of court.
• If loan is repaid, Transfer will not take place.
• Any surplus/ deficit on sale of property mortgaged shall be
recovered.
Mortgage by Conditional Sale –

• Mortgagor apparently sell property to mortgagee.
❖ Conditions: -
• On repayment of loan, sale becomes void
• On repaid, property re- transferred to mortgagor.
• On failure, sales becomes effective and binding.
English Mortgage –
• Combination of simple and conditional sale mortgage.
• Property absolutely transferred to mortgagee.
• Mortgager undertake to repay money.
• On repayment, Property will be re-transferred.
• On failure, Property will be sold.
• Surplus/ deficit can be recovered.
• Court can intervene.
Usufructuary Mortgage-
• Mortgagor delivers property to mortgagee.
• Receive rent and profits from the property in lieu of settlement of
mortgage money.
• Property cannot be sold even on non- repayment.
• Also known as Mortgage with possession.
12
Mortgage by deposit of Title deed –
• Document of property is transferred to create security.
• Not mandatory to register mortgage deed.
• Oral agreements are also acceptable but cannot be proved.
• Delivery of possession cannot take place.
• Also known as Equitable Mortgage.
Anomalous Mortgage-
• Combination of 2 or more mortgages.
Puisne Mortgage –
• Mortgager, having mortgaged his property mortgages it to
another person. That second Mortgage called Puisne.
• Also known as Junior or 2nd Rank Mortgage.
Notes
13
CS EXECUTIVE
#LAW
#LOGIC
#LOVE
CS SHUBHAM ABAD
B.COM, CS, MA(ECO)
DEDICATED TO MY PARENTS SHRI RIKHABCHAND &
PUSHPA ABAD.
SPECIAL THANKS TO: -
ASHISH & SIMPLE PARIKH FOR YOUR

SUPPORT.
UNIQUE ACADEMY TO GIVE ME THIS
PLATFORM.
MODI SIR FOR A MORAL SUPPORT. & YOU
ARE MY STRENGTH.
CHANCHAL SAKHRANI FOR GIVING BEAUTY
TOTHE BOOK AND MAKE IT SIMPLIER.
COMPETITORS FOR MAKING ME STRONG.
STUDENTS FOR WHICH EVERY THING IS. LOVE YOU ALL

3000
1.1
➢ Organisational structure and Management: -

• Central Board of director
• Governor
• Deputy governor
• Executive Directors
• Principle Chief General Manager
• Chief General Manager
• General Manager
• Deputy General Manager or Assistant General Manager
• Manager
• Assistant Manager
• Supporting staff
➢ Central board of directors

• Top of the RBI's organisational structure
• Primary authority and responsibility for the oversight of RBI
• Appointed by Central Government
• Delegate specific function to four local boards and committees
NOTES :-
CS SHUBHAM ABAD RBI ACT 1934 UNIQUE ACADEMY

1.2
• 14 Directors on Central Board, including 1 Director each from 4 local boards

• Other 10 directors to represent different sector of economy.
• Term 4 years
• Eligible for re-appointment
• Nominee director of Government of India→1 Govt official usually from finance
secretary.
• as a nominee director of Government of India who represent the Government.
• No act or proceeding of board can be questioned on ground of any vacancy or
defect in board
• Central Government can separate the board if Central Board failed to carry out
the function
➢ Local boards: -
• RBI has four local boards:
• Constituted by Central Govt
• one each for the Western, Eastern, Northern and Southern areas
• Located in Mumbai, Kolkata, New Delhi, and Chennai
• Each board has 5 members appointed by Central Government
• Term 4 years
• Eligible for re-appointment
• Elect one of the member as a chairman
• Central board delegate such power and function to local board
➢ Governor and Deputy Governor

• Governor supervise and direct the affairs and business of RBI
• Governor is the chief executive
• It also includes Deputy Governor and Executive directors
• Whole time employee of bank
• Deputy Governor may attend the meeting of Central Board but shall not be
entitled to vote unless authorised by Governor
NOTES :-

1.3
• Term→5 years and eligible for re-appointment
➢ Function of the RBI

• Issue of Bank notes
• Securing monetary stability
• Operate the currency and credit system
➢ Banking function
➢ Government' Bank
➢ Banker’s Bank
➢ Banker of Central Government or State Government
➢ Maintain Government deposit
➢ Pay and receive money on behalf of Government
➢ Short term loan to Government of India
➢ Issue treasury bill
➢ Advise Government on financial economic matters
➢ Manage surplus cash as a portfolio manager
➢ Banker’s Bank/Lender of last resort:

a) RBI has current account of all banks
b) Maintain cash reserve of commercial bank
c) Lends fund to commercial bank
d) Introduce centralised fund management system to facilitate transfer of fund
e) Re-discounting of bill
f) Lender of last resort
➢ Issue of currency:-
• RBI has sole right to issue currency except one-rupee coins and notes
• Issuing function is performed by issue department
• Currency issued are declared unlimited legal tender
NOTES :-

1.4
• Ensure adequate supply of clean and genuine notes

• RBI can issue notes at ₹5000 and ₹10000 denomination
➢ Coins:-
• Government of India has sole right to mint coins
• Circulation through RBI
• Coin can issue up to denomination of ₹1000
➢ Monetary policy function:-

• Controls monetary policy of India.
• Inflation and liquidity in economy is controlled through monetary policy
• Inflation is calculated as per consumer price index
➢ Monetary policy committee:-

• Central Government constitute monetary committee by NIOG
• It consists of:
a) Governor of RBI
b) Deputy Governor of RBI shall be in charge of monetary policy
c) One officer of RBI nominated by Central Board
d) Three persons appointed by Central Government
• Four meeting in a year
• Quorum shall be four members at least one of whom shall be Governor or in
absence, the deputy governor who is member of Monetary policy committee
• One member one vote
• Equality of vote, governor shall have casting or second vote
• Each member shall specify the reason for voting in favour or against the
resolution
• Monetary policy report
➢ Once in every six months publish monetary report explaining:
a) Source of inflation and
NOTES :-

1.5
b) Forecast of inflation for the next 6 - 8 months
➢ Foreign Exchange Management:-

• Regulate and manage foreign exchange
• Manage forex and gold reserves of the nation
• RBI can authorise any person to deal in foreign currency as an authorised dealer
to deal in foreign exchange or in foreign securities.
• RBI can revoke an authorization issued in public interest or if authorized person
failed to comply with conditions or rules, etc
➢ Banking Regulation and Supervision:-

• RBI has following powers with respect of board of banking company:
1. Appointment of chairman and managing director
2. Appoint additional director
3. Removal of managerial personnel
4. Supersede the board
5. Control advances of banking company
6. Issue and cancel the license of banking company
7. Prevent the detrimental affairs of banking company
8. To secure proper management
• NOTE:
1) RBI has power to issue direction if it is in the public interest or in the interest
of banking policy
2) RBI has authorized to issue direction to banking co. for resolution of stressed
Assets.
➢ Regulate and Supervise the function of NBFC and Co-operative bank:-

• Register NBFC and issue certificate of registration
• Prohibits the issue of prospectus or advertisements soliciting deposits of money
• Can call for information from NBFC
• May issue direction or regulation to NBFC
NOTES :-

1.6
• Penalise NBFC in case of default

• Cancellation of registration
• Filing a winding up petition
➢ Payment and Settlement function:

• Payment and Settlement Systems Act,2007 was enacted to regulate the
payment system
• The act designated the RBI as the authority for this purpose.
• Power of RBI:
1. RBI can authorise any person to commence or operate a payment system
2. Can revoke the authorisation if it contravenes or fails to comply any direction
➢ Consumer Protection, Financial Literacy and Development: -

• Launched a Financial Literacy week in June 2018
• RBI has formulated the Bank Ombudsperson Scheme for redressal of grievance
• Set up Consumer Education and Protection Cell (CEP Cell)
➢ Prudential norms for banks
A. Capital adequacy: -
• RBI instructed to maintain adequate capital on a continuous basis
• Measured in term of Capital to Risk- Weighted Assets Ratio (CRAR)
B. Loan and Advances: -
• RBI requires bank to classify their loan assets as performing and non-performing
assets
❖ NPA further categories into:
• Sub standard
• Doubtful and
• Loss assets
❖ Classify their investment into three categories:
• Held to maturity (HTM)
NOTES :-

1.7
• Available for sale (AFS)

• Held for trading (HFT)
➢ Monetary policy management:-

1. Repo rate: -
• RBI provides overnight liquidity bank against the collateral of security or security
under liquidity adjustment facility
2. Reserve repo rate: -
• Rate at which RBI borrow overnight money from commercial bank
3. Liquidity Adjustment Facility (LAF): -
• Overnight as well as term repo auctions
• It includes repo and reserve repo rate to control liquidity in the market
• It helps in development of inter-bank term money market
4. Bank rate or re-discount rate: -
• Rate in which Reserve bank ready to buy or re-discount the Bill of exchange or
other commercial papers
5. CRR: -
• Average daily balance that a bank is required to maintain with RBI as a share of
(deposits) such percent of its Net Demand and Time liabilities. (NTDL)
• To control inflation, RBI increases the CRR rate
6. SLR: -
• Share of deposit (NTDL) that require to be maintained in safe and liquid asset in
the form of liquid assets like Unencumbered government securities, etc
7. Open market operation (OMOs): -

• Buying and selling of Government securities by RBI
8. Margin standing facility (MSF):-

• Schedule Commercial bank can borrow additional amount by dipping into their
SLR up to a limit at a penal rate of interest
NOTES :-

1.8
• It provides safety value against unanticipated liquidity shocks to the banking

system
9. Corridor: -
• MSF rate and reverse repo rate determine the corridor for the daily movement
in the weighted average call money rate
➢ Penalties:-
a)If any person fails to: -
• Product any books of account or other document
• Furnish any information
• Answer any question
• Fine extend to ₹2000 of each offence continuous default ₹100 per day
b)Person commences NBFC business without getting a certificate of registration
from RBI
o Imprisonment minimum: - 1 year maximum: - 5 years and Fine ₹1,00,000 and
Maximum ₹5,00,000
NOTES :-

1.9
NOTES :-

6.1
OVERSEAS DIRECT INVESTMENT (ODI)
➢ Meaning: -
• Investment made from India to a country outside India.
➢ Method of investment: -
1. Automatic route→does not require prior approval from RBI
2. Approval route→required prior approval from RBI
➢ Approval route: -
• ODI on energy and natural resources sector exceeding prescribed limit of net worth.
• ODI is unincorporated oil sectors by resident entities exceeding prescribed net worth and proposal
approved by competent authority.
• Navratna public sector undertaking, ONGC videsh Ltd and Oil India Ltd can invest in overseas
unincorporated or incorporation entities under automatic route.
• ODI by registered trust or societies engaged in the manufacturing or educational or hospital sector in a
JV or wholly owned subsidiary outside India.
NOTES :-
CS SHUBHAM ABAD ODI UNIQUE ACADEMY

6.2
➢ Eligibility criteria for trust: -

• Register under trust act.
• Trust deed permits the proposed investment overseas.
• Investment approved by trustee.
• Engaged in Bonafide activities.
• Trust existence for atleast 3 years.
• No adverse notice by any regulatory body.
➢ Eligibility criteria for society: -

• Registered.
• MOA permits ODI and also approved by governing body.
• Existence for atleast 3 years.
• No adverse notice of any regulatory body.
➢ Proposal for making ODI under approval route: -

• Application to the designated Authorised Dealer Bank with the proposal.
• AD submit application to RBI along with recommendation and supporting document.
• AD before forwarding the application submit the form ODI and transaction no. generated.
• If proposal is approved RBI issue Unique Identification Number.
➢ Documentation for RBI approval: -

• Letter from AD bank mentioning -
1. Transaction no. generated by ODI application.
2. Brief details of Indian entity or overseas entity.
3. Background of the proposal.
4. Brief of transaction.
5. Observation of the AD bank in respect of -
• Primafacie viability of JV or wholly owned subsidiary.
• Contribution to external trade and other benefits.
• Financial position of Indian party.
• Copy of Board Resolution.
• Diagrammatic presentation of the organisational structure.
• Incorporation certificate and Valuation Certificate.
➢ Financial commitment: -
• Amount of direct investment outside India.
• By way of contribution to -
NOTES :-

6.3
• Equity
• Loan
• 100% of the amount of guarantees and
• 50% of performance guarantee on behalf of overseas entity.
➢ Automatic route: -
• Not required to get approval from RBI.
• Eligible investor -
1) Company or body corporate created under special act.
2) Registered partnership act.
3) LLP.
4) Other entity notified by RBI.
➢ Permissible sources for funding: -

• Indian party can fund to its JV or WOS outside India by any of following sources -
• Drawer of foreign exchanges from AD BOI.
• Swap of shares.
• Capitalisation of exports.
• Proceeds of foreign currency convertible bond and ECB.
• Proceeds of ADR or GDR.
• Balance held in exchange earner foreign currency account.
➢ ODI in the financial service sector: -
• Indian entity has earned Net Profit during the last 3 Financial Year from financial services.
• Registered with appropriate authority in India.
• Obtain approval from concerned regulatory authorities in India.
• It fulfilled the prudential norms relating to capital adequacy.
➢ Acquisition or Sale of Foreign Securities by Resident Individual: -

• Gift→ Can receive gift from PROI.
• ESOP→ Issued by company incorporated outside India under Cashless Employees Stock Option
Scheme.
• Inheritance→ Inheritance from a person resident in or outside India.
• Purchase→ Purchase out of fund held in resident foreign currency account.
• Bonus or Right issue
➢ Investment by Indian Mutual Fund: -

❖ Overall capital $ 7billion in -
NOTES :-

6.4
• ADR or GDR of the India or foreign company.

• Equity of overseas company.
• Foreign debt securities.
• Money market instrument.
• Government securities.
• Derivatives traded on RSE.
• Short term deposit with banks.
➢ Obligation of Indian party which make ODI: -

➢ Receipt of share certificate of investment and submit it same to AD Bank within 6 months.
➢ Repatriation of receivable from foreign JV or WOS in India.
➢ Submit Annual Performance Report (APR) to RBI by 30thJune every year.
➢ Report the decision taken by JV or WOS alteration in share holding pattern within 30 days of the
approval.
➢ Repatriation of sale proceeds within 90 days from sale of the shares or securities and submit to RBI.
NOTES :-

14.1
➢ Objective and Scope of Act: -

• Central Government Controls over:
a. Production
b. Supply
c. Distribution
d. Trade and commerce
e. Of essential commodities
➢ Essential commodities: -
• Specified in the schedule and it includes
a) Drugs
b) Fertilizers→inorganic, organic or mixed
c) Foodstuffs→including edible oil seeds and oil
d) Hank yarn→made from cotton
e) Petroleum and petroleum products
f) Raw jute and jute textiles
NOTES :-
CS SHUBHAM ABAD ESSENCIAL COMMODITIES ACT 1955 UNIQUE ACADEMY

14.2
g) Seeds
h) Seeds of cattle fodder
i) Jute seeds
• Central Government can add or delete items from the list.
• Tea is not foodstuff.
➢ Sugar: -
• Any form of sugar containing 90% of sucrose include sugar candy,
• Khandsari sugar or bura sugar or crushed sugar or sugar in crystalline or in
powdered form
• Sugar in process in vaccum pan sugar factory or raw sugar
➢ Power of Central Government to control production, distribution and

supply of essential commodities: -
1. Central Government can regulate or prohibit the-
• Production
• Supply
• Distribution of essential commodities and trade and commerce.
2. Circumstances-
• Maintaining the supply of essential commodity
• Increase the supply of essential commodity
• Secure equitable distribution
• Making available at fair price
• Serving the essential commodity for the defence of India
3. Contents of order-
• Regulate the production or Manufacture of any essential commodity by
• license or
• permits or
• otherwise
NOTES :-

14.3
➢ Powers of Central Government to control production, supply and

distribution etc, of essential commodities: -
• Regulating the production distribution by license or permits
• Cultivation of any waste land for growing food crops
• Maintaining or increasing the cultivation of food crops
• Controlling the price
• Prohibiting the withholding from sale of essential commodities
• Pass as order to sell essential commodities held in stock
• Entry, search or examination of premises, aircraft vessels, vehicles, etc
• Seizure of premises, aircraft, vessels, animal, etc
➢ Fixing the price of essential commodities being sold to government:

• Price payable will be-
a. Agreed price→agreed upon consistently with the controlled price.
b. Controlled price→if price cannot be agreed than price calculated with reference
to controlled price.
c. Market price→when both above fails, price calculated at the market rate
prevailing in the locality.
➢ Fixing the price of essential commodities during emergency:

• Central Government can direct the price-
▪ During emergency
▪ To control rise in price
▪ To prevent holding in foodstuff
▪ Notification shall remain in force for 3 months
• Price-
▪ Agreed price
▪ Controlled price
▪ Market price
NOTES :-

14.4
➢ Payment of procurement price for food grain and edible oil (except
in case of emergency): -
• Any person is required to sell food grains and edible oil under any order to-
▪ Central Government
▪ State Government
▪ Officer or agent of such Government or
▪ Corporation owned or controlled by Government.
• Procurement price with regards to-
▪ Controlled price
▪ General crop prospects
▪ Need for making available at reasonable price to consumers
▪ Recommendation by agriculture price commission
➢ Fixing Price for Sugar to be paid to Producer: -
• Person is required to sell sugar to-
▪ Central Government
▪ State Government
▪ Officer or agent of Government
▪ Corporation owned or controlled by Government
➢ Price will be determined on following basis: -

(+) Minimum price for sugar cane
(+) Manufacturing cost of sugar
(+) Duty or tax if any
(+) Reasonable rate of return
➢ Other power of Central Government: -
NOTES :-

14.5
• Power to give directions to producer, importer or exporter to sell or dispose of or

deliver or remove any kind of sugar from godowns or factory however pledging
with schedule bank is allowed.
• Can appoint authorised controller of maintaining or increasing the production
and supply of essential commodities however power shall be consistent with the
provision of any enactment.
• Central Government can delegate the power to any officer or authority
subordinate to Central Government or State Government.
➢ Order of Central Government: -

• General nature→ notified in official gazette.
• Specified nature→ notice to that individual or affixed to the outdoor or
conspicuous place.
➢ Seizure, consfication and scale of essential commodities: -

• Seize-
▪ taking possession of property against the wishes of owner.
▪ Owner may not agree to give the possession and the action of seizure is not
mutual.
▪ Action prior to confiscation.
• Confiscation: -
▪ handling over the confiscated property to public treasury
▪ Court can dispose of property which comes before it in criminal trial
▪ Confiscation follows seize Sale of Confiscated Goods
▪ act of selling confiscated commodity
➢ Relationship between Seizure and Confiscation: -

• Commodity which has been seized may or may not be confiscated.
NOTES :-

14.6
• Commodity that has not been seized cannot be confiscated.
➢ Difference between Seizure and Confiscation: -

• Seizure: -
1) taking possession against the wishes of the owner
2)Collector has no power to go into the validity of the seizure
3)Before consfication
• Confiscation: -
1)handling over the confiscated property to public treasury
2)Power of confiscation vest with collector
3) after seizure
➢ Power to Confiscate: -
• Collector has power to consficate any animal, vehicle, vessel
• Power may be delegated to district officer
• Not mandatory to confiscate the whole stock because it is judicial discretion
➢ Sale of confiscated commodity: -
• Collector can make sale order if-

a) Report of seizure is received or inspection is done and
b) Essential Commodity is subject to natural decay or
c) Public interest
➢ Price: -
• Controlled price
• Public auction (if no controlled price)
• Fair price shop at price fixed by Central Government or State Government
➢ Dispose of sale proceeds of Confiscated Goods: -

NOTES :-

14.7
▪ Sale proceeds after deduction of expenses shall be paid to owner of-

▪ No order of confiscation is passed by collector
▪ Appeal is filed
▪ Prosecution the person concerned is acquitted
➢ Issue of Show Cause notice before confiscation of essential commodity:
1) Notice in writing-
▪ before Notice specify the grounds of confiscation.
2) Notice shall specify the grounds
3) Opportunity to make representations-

▪ Opportunity to make representation in writing within reasonable time
4)Opportunity of being heard-

▪ Before confiscation give OOBH
5)Protection against confiscation-

▪ Owner proves that mode of transport was used without his knowledge and reasonable care
has been taken, then goods cannot be confiscated
6) Validity of order-
▪ Any subsequent discovery of any defect cannot invalidate the confiscation order
➢ Appeal against confiscation Order: -

• Appeal to State Government within 1 month from order
• State Government can confirm, modify or set aside the order
• Give OOBH before passing the order
• If it is not possible to deliver the goods than price shall be paid with reasonable
interest
NOTES :-

14.8
➢ Offences and Penalties: -

• Cognizable offence
• Three condition to be satisfied before taking cognizance:
1) Report in writing
2) Report by public servant or aggrieved person or consumer association
3) Presence of Mens Rea (guilty mind)
➢ Offences by company: -
• Person in charge shall be liable
NOTES :-

15.1
➢ Objective of Act: -
• Protect the interest of consumer
• Enforce standard and weights and measures.
• Regulate the trade and commerce in weight and measure.
• No short measurement in the distribution of goods.
➢ Meaning of Legal Metrology: -

• Part of Metrology which treats units of weighment and measurement.
• In relation to the mandatory technical and legal requirement which ensure
public guarantee from the point of view of security and accuracy.
➢ Features of Legal Metrology: -
• Importance for Scientific technological and industrial process of any
country.
• Ensure accuracy of measurement.
• Extend to human activities like commercial, industrial, health and human
safety.
➢ Standard Weights and Measures: -

• Weight shall be based on Metric System.
• No weight other than standard shall be used / Manufacturing / Imported
NOTES :-
CS SHUBHAM ABAD LEGAL METROLOGY ACT 2009 UNIQUE ACADEMY

15.2
• However, for export or scientific investigation weights other than standard

weight can be used
➢ Pre-Packaged Commodity: -
• Definition-
✓ Commodity which without purchaser being present is placed in packaged
and contain pre-determined quantity.
• Declaration-
✓ Shall not Manufacturing, pack, sell unless quantity or other specified
declaration is mentioned.
• Advertisement-
✓ Mentioned retail price, Net quantity and No. of commodity contain in the
package.
➢ NOTE: - Following words cannot be used which create misleading like

Jumbo, full, family, huge, extra, large, etc.
➢ Retails Packages: -
• Package for retail sale to ultimate consumer.
• Includes imported packages.
• Statutory Requirement- Packed in Standard quantity.
• Commodity given in 2nd Schedule – If packed in size other than standard size
than declare that ‘Not a Standard pack size’.
• Statutory Declaration-
✓ Name and Address of manufactures.
✓ Common or generic name.
✓ Month and year of manufacture and import.
✓ Unit sale price.
➢ Wholesale package: -
NOTES :-

15.3
• Package contain No. of retail package not intended for sale to single
consumer.
• Commodity sold to an intermediary in bulk.
• 10 or more retail packages are labeled as required under the sales.
• Statutory Declaration: -
✓ Name and Address of manufactures or importer or packer.
✓ Identity of the commodity.
✓ Total Number of retail package.
✓ Does not require declaration of MRP, date of manufacture, address or
consumer complaint telephone number.
➢ Industrial and Institutional Package: -

• Institutional consumer means who buy packed commodities directly from
the manufacture for use by that institution.
• Industrial consumer means consumer who buys packaged commodities
directly from manufacturer for use by that industry.
• Do not require any declaration on them.
➢ Export Packages: -
• Meant exclusively for export and do not require any statutory declaration.
• Cannot sold in India.
• Do not require registration.
➢ Import Package: -
• Follow all provisions of the packaged commodities.
• Require Registration.
➢ Appointment of Director By CG: -

• CG can appoint by Notification.
NOTES :-

15.4
a) Director of legal metrology.

b) Additional director.
c) Joint director
d) Deputy director.
e) Assistant director and other employee
➢ Power and Duties of Director: -
• Power and duties of director is specified by CG.
• Every legal metrology officer shall exercise power and discharge duties
under the supervision of director.
• All officers shall deemed to be public servant.
• No suit, prosecution shall lie against the director, controller and legal
metrology officer who acted in good faith.
➢ Appointment of Controller by SG: -
• SG can appoint by Notification
a) Controller of legal metrology.
b) Additional controller
c) Joint controller.
d) Deputy controller.
e) Assistance controller.
f) Inspector and other employees
➢ Delegation of power of director to the controller:

• CG with the consent of SG delegate powers of the directors to controller of
legal metrology.
➢ Inspection and Investigation: -
• Director, controller has reasons to believe that any weight or measures or
goods in which an offence punishable under this act appears or likely to be
committed are kept or concealed in any premises.
➢ Power to Entry and Seize: -
NOTES :-

15.5
• Officer can enter at any reasonable time into any premises for inspection.
• Seize any weights, measures or other goods register or document.
• If goods seized are subjected to natural decay than director may dispose
such goods.
• Search and seize as per CRPC 1973
➢ Power of Forfeiture: -
• Any non-standard or unverified weights or measure shall be liable to be
forfeited unless verified and stamped within reasonable time.
➢ Manufactures to maintain records and register: -

• Manufactures, repairer or dealer of weight shall maintain such records and
register as may be prescribed.
• Such records shall be produced at the time of inspection.
• To import any weights, he should be register with director.
➢ Approval of Model: -
• Before manufacturing or importing the approval of model is required on
payment of fees.
➢ NOTE: -
• Any person shall not manufacture, repair or sell any weight and measure
unless license issued by the controlled.
➢ Organization International De Metrologie Legale (OIML): -

• International organization of legal metrology established in 1955 to promote
global harmony of legal metrology procedures.
• Headquarter is in Paris (France)
• Develops a worldwide technical structure for its member with metrological
guidelines as per requirement of member countries.
NOTES :-

15.6
➢ Function of OIML: -
• Provides guidelines for the National and regional requirements concerning
the manufacture and use of measuring instrument.
• It is implemented on behalf of the public authorities.
• It is entirely of legislative, administrative and technical nature.
• Develops Model regulations to ensure product meet international
specification.
• OIML certificate system was introduce in 1991 to facilitate administrative
procedure and lowest cost.
➢ Penalties: -
1. Use of Non-standard weight-
✓ First offence - Fine upto RS 25k
✓ Subsequent Offence- Imprisonment upto 6 months and fine
2. Alteration and Tampering standard Weight-
✓ First offence- Fine upto 50k
✓ Subsequent offence - Imprisonment upto 6 months to 1 year
3. Selling Non-standard package-

✓ First offence- Fine upto 25k
✓ Subsequent offence- Fine 50k to RS 1L or Imprisonment upto 1 year or both
4. Counterfeiting of Seal-
✓ First offence- Imprisonment 6 months to 1 year
✓ Subsequent offence - Imprisonment 6 months to 5 year
NOTES :-

17.1
➢ Objectives / Advantages of Act: -

• Promote transparency and accountability.
• Bring Uniformity in regulatory development.
• Ensure speedy adjudication.
• Reduce litigation.
• Boosting domestic and foreign investment.
• Ensure timely and efficient project execution.
• Introduce professionalism and standardization in sector.
➢ Important Definitions: -
• Allottee –
✓ Means person to whom a plot, apartment or building has been allotted, sold or
transferred by promoter.
✓ Includes person subsequently acquires through sale or transfer.
✓ Does not include person to whom such plot, apartment or building is given on
rent.
• Real Estate Agent: -

✓ Means any person who negotiates or acts on behalf of person in transaction of
transfer of plot, apartment or building, in project, by way of sale with another
NOTES :-
CS SHUBHAM ABAD Real Estate (Regulation and Development) Act, 2016 UNIQUE ACADEMY
17.2
person or transfer of plot, apartment or building and receives remuneration or

fees or charges for his services whether as commission or otherwise.
✓ Includes a person introduces through any medium, buyers and sellers to each
other for negotiation for sale or purchase of plot, apartment or building.
✓ Property dealers, brokers, middlemen by whatever name called.
• Carpet Area –
✓ Means Net Usable floor area of an apartment
✓ Excludes area covered by external walls, areas under shafts, balcony or verandah
and open terrace
✓ Includes internal partitions walls of apartment.
➢ Establishment of Real Estate Regulatory Authority (RERA): -

• Established in each state and Union Territory.
• Appropriate Government of two or more states or Union Territory may establish
One Single Authority.
➢ Registration of Real Estate Project: -

• A promoter cannot –
✓ Advertise
✓ Sell or offer for sale
✓ Invite persons to purchase
✓ Any plot, apartment or building
• Unless it is registered.
• If project is ongoing on date of commencement of act and which completion
certificate not issued then promoter required to make application within 3 years
from date of commencement of act.
• Projects which do not require registration –
✓ Area of land not exceed 500 sq. meters.
✓ No. of apartments not exceed 8.
NOTES :-
17.3
✓ Project which has been received completion certificate prior to commencement

of act.
➢ Application by promoter: -
• Applicant has to file an application for registration with RERA in prescribed form,
fees and documents.
• Details to be attached –
✓ Brief details of his enterprise.
✓ Brief details of projects launched by him in past 5 years.
✓ Location details of project.
✓ Sanctioned plan, layout plan.
✓ Number, type, and carpet area of apartments for sale.
✓ Number and area of garage for sale
✓ Names and addresses of his real estate agents.
✓ Names and addresses of contractors, architect, structural engineer.
• Above stated application shall also include declaration by promoter or
authorized person by affidavit –
✓ Legal title to land.
✓ Land is free from all emburances.
✓ Time period within which period project will complete.
✓ 70% amount realized from allottees.
• Authority shall within 30 days may grant registration –

✓ Provide Registration Number including Login ID and password.
• Authority shall within 30 days may reject application –

✓ Reasons to be recorded in writing.
✓ Give OOBH.
• If fails to grant registration or reject application within 30
NOTES :-
17.4
Days –
✓ Project shall be deemed to have been registered.
✓ Authority shall within 7 days of expiry of 30 days provide Registration Number
including Login ID and password.
➢ Extension of Registration: -
• Developer at time of registration has to specify time line of complete of project.
• Promoter to apply for extension of time limit on Force Majeure conditions mean
in case of war, flood, drought, fire, earthquake, and for other reasons recorded in
writing.
• Maximum extension can be granted is 1 year.
➢ Revocation of Registration: -
• Authority may revoke –
✓ On receipt of complaint, or
✓ Suo moto, or
✓ Recommendation of competent authority.
• Authority will revoke after being satisfied –

✓ Promoter makes default under act / rules / regulations
✓ Promoter Violates any of terms or conditions
✓ Promoter involved in any kind of unfair practice.
➢ Registration of Real Estate Agents: -

• Real estate agent make application to authority accompanied by fees and
documents.
• Authority being satisfied shall grant a single registration for a entire State or
Union territory.
• Authority may reject application on non- compliance of rules or regulations.
NOTES :-
17.5
• OOBH shall be given before rejection.

• NOTE – If authority fails to grant or reject application within specified time, it shall
be deemed to be granted.
➢ Functions of Real Estate Agent: -

• Cannot act as real estate agent without registration.
• Maintain and preserve such books of accounts, records and documents as may be
prescribed.
• Possession of all information and documents.
• Not to enter into Unfair Trade Practices.
➢ Functions and Duties of Promoters: -

1. Advertisement –
• No promoter shall advertise, market, book, sell or offer for sale or invite persons
to purchase without registering project.
• If person so affected by such then he shall be returned his entire investment
along with interest.
2. Accepting Deposits –
• Promoter shall not accept a sum more than 10% of cost as an advance from a
person without a first entering into a written agreement.
• Project shall be developed and completed in accordance with sanctioned plans
and shall not make any additions or alterations without previous consent.
3. Removal of Structural Defects –
• In case of any defect in workmanship, quality or other services or any other
obligations of promoter relating to development is brought to notice of
promoter within 5 years by allottee from handling possession.
• It is duty of promoter to rectify such defects within 30 days and if failure to rectify
such, the aggrieved allottees shall be entitled to receive compensation.
4. Transfer to third party –
NOTES :-
17.6
• Promoter shall not transfer or assign any rights and liabilities to third party
without prior written consent from 2/3rd allottees except promoter and without
prior approval of authority.
5. Insurance –
• Promoter shall obtain insurance as notified by appropriate government including
but not limited to -
✓ Title of land and building
✓ Construction of real estate project
• Promoter is liable to pay premium and charges up to date of handling.
6. Transfer of title deeds to allottee –
• Promoter shall execute a registered conveyance in favor of allottees along with
undivided proportionate title.
• He should also hand over physical possession within specified period as per
sanctioned plans under local laws.
➢ Rights and Duties of Allottees: -

• Rights –
✓ Obtain information in relation to promoter and project.
✓ To know stage wise time schedule of completion of project.
✓ To claim possession once project is completed.
✓ To claim refund along with interest.
✓ To obtain documents and plans.
• Duties –
✓ To make payments.
✓ To pay interest at a prescribed rate.
✓ To participate towards formation of society.
✓ To take physical possession.
✓ To participate in registration of deed.
➢ Real Estate Regulatory Authority: -

NOTES :-
17.7
• Established in each state and union territory to protect interest of stakeholders

and perform other functions.
• Body Corporate –
✓ Perpetual succession
✓ Common seal
✓ Sue and can be sued.
• Appointment and Qualification of Chairperson and Members –

✓ Appointed by Appropriate Government on recommendation of selection
committee.
❖ Chairperson and Members -
✓ Candidate should be a person having adequate knowledge and professional
experience of atleast 20 years in case of chairperson and 15 years in case of
members in economics, law, commerce, industry, housing, urban development.
✓ Note- Before appointment appropriate government shall satisfy that person does
not have any financial or other interest.
• Terms of Office –
✓ Chairperson and Members shall hold office for a period of 5 years or 65 years of
age, whichever is earlier.
• Resignation Removal and Vacation of Office –

❖ Resignation –
✓ Chairperson or Member may relinquish his office by giving in writing notice of not
less than 3 months.
❖ Removal –
✓ Grounds-
▪ Adjudged as Insolvent; or
▪ Convicted of an offence involving moral turpitude; or
▪ Incapable of acting as a Member; or
NOTES :-
17.8
▪ Acquired such Financial or other interest; or

▪ Abused his position.
✓ NOTE – OOBH is granted.
❖ Vacancy –
✓ Any Vacancy shall be filled within a period of 3 months from date of vacancy
occurs.
➢ Filing of Complaints with the Authority: -
• Any Aggrieved person may a file a complaint with an Authority for any
contravention or violation of provision of act or rule against promoter or real
estate agent.
➢ Functions of RERA: -
• To register and regulate project and agent.
• To publish and maintain records of website, projects along with details.
• To maintain online database of defaulted promoters, registered real estate
agents and those who has been rejected or revoked.
• To advice and make recommendations to government.
• To ensure compliance of law.
➢ Powers of Authority: -
• To impose penalty or interest.
• To regulate own procedure.
• To Suo moto make reference to CCI of any matter that affect market through
power of monopoly situation being abused.
• To Suo moto or complaint call upon promoter/ agent / allottee at any time.
• Authority may appoint one or more person for investigation and inquiry.
• Authority may have foll powers same as of civil court –
✓ Direct the discovery and production of books of account
NOTES :-
17.9
✓ Summon and enforce attendance of person

✓ Examine them on oath
✓ Issue commission for examination of witness or documents.
• It may Interim orders.
• Directions given to promoter/ agent / allottee would be binding.
• It can Amend orders passed by it within 2 years of passing.
• To recover interest/ penalty / compensation.
• To enforce orders or directions officer or regulatory authority or tribunal.
➢ Central Advisory Council: -

• Established by CG.
• Minister to GOI in Charge of ministry of CG dealing with Housing shall be Ex
officio Chairperson.
• Representatives from Ministry –
✓ Finance
✓ Industry and commerce
✓ Urban Development
✓ Consumer affairs
✓ Corporate Affairs
✓ Law and Justice
✓ National housing bank
✓ Five Representatives of SG (Rotation Basis)
✓ Five Representatives of RERA (Rotation Basis)
• Also consist of not more than 10 members to represent interest.
➢ Real Estate Appellate Tribunal: -

• Established by Appropriate Government.
• One state one REAT; but may have more than one tribunal.
• Any person aggrieved by direction, decision or order made by authority or officer
may appeal before REAT.
NOTES :-
17.10
• Appeals may be filed by Government or Authority or person.

• Appeal may be filed within 60 days from date of order.
• On receipt of appeal AT pass order after giving OOBH to parties.
• Appeal shall be disposed of within 60 days from receipt of appeal.
If any appeal beyond 60 days AT shall record reasons in writing.
➢ Composition and Term of REAT: -

• Consist of Chairperson and Minimum 2 whole time members.
• Chairperson and Member shall hold office for 5 years or 67 years in case of
chairperson and 65 years in case of member whichever is earlier.
➢ Powers of Tribunal: -
• To regulate own procedure.
• Power same as Civil Court.
➢ Legal Presentation: -
✓ CA or CS or CMA or Legal Practitioners or any officer.
➢ Appeal to High Court: -
✓ Within 60 days from order.
➢ CS – One stop professional advisory services for Real Estate Projects:
✓ Financial Advisory Services.
✓ Various applicable provision on project.
✓ Registration and Extension procedure.
✓ Various obligations, duties, functions of Promoter.
✓ Penal provisions.
✓ Legal and Regulatory compliances.
➢ CS - As Legal Representative: -
• CS holding Certificate of Practice –
✓ Represent Promoter before any RERA.
✓ Represent a person before REAT.
NOTES :-
17.11
✓ Represent a person before any competent authority.
NOTES :-
1
Benami Transaction (Prohibition) Act 1988

➢ Benami Property:-
▪ Property which is subject matter of a benami transaction and also
includes the proceeds from such property.
➢ Benamidar:-
▪ Person or a fictitious person in whose name property is transferred or
held
▪ Including who lends his name and
▪ Legal owner who hold for beneficial owner.
➢ Beneficial Owner:-
▪ Whether his identity is known or not
NOTES :-
CS SHUBHAM ABAD Benami Transaction (Prohibition) Act 1988 UNIQUE ACADEMY

2
▪ Whose benefit the benami property is held by benamidar.
➢ Benami Transaction:-
▪ Property transfer or held by one person and consideration is paid by
another person for the benefit of the person who paid for it.
▪ property made in fictitious name
▪ Where owner denies the ownership or not aware of the ownership
▪ Person who paid the consideration is not traceable or source is not
traceable.
But does not include-
a) Property held by Karta or members for his benefit or benefits of other

member and consideration paid out of the known source.
b) Property held in fiduciary capacity by trustee, executor, partner, director,
and depository etc.
c) Property held by family member or lineal ascendant and descendent.
➢ Object of the act:-

a) Define Benami transaction and benami property.
b) Procedure of determine such transaction.
c) Consequences of entering into such transaction.
d) Penalties for entering into benami transaction.
e) Establish appellate tribunal.
➢ Consequence of benami transaction:-
NOTES :-

3
a) Real owner cannot file suit or enforce claim or recover the benami
property from legal owner.
b) Central government will confiscate the benami property.
c) Benamidar shall not re- transfer the benami property to any person and it
transfer such transfer as be void.
➢ Penalty:-
a) Before commencement of amendment act 2016:-
Imprisonment upto 3 years or fine OR with both
b) After amendment act 2016:-
Minimum 1year and maximum 7year and fine upto 25% of fair market value
of property.
➢ Proceeding against benami property:-

▪ Initiating officer has reason to believe that any person is benamidar he
may issue show cause notice after recording the reason in writing.
▪ Copy also serve to beneficial owner.
▪ Initiating officers may with previous approvals provisionally attached the
property for maximum 90 days.
▪ Attachment means prohibition of transfer conversion and disposition or
movement.
AFTER
▪ Initiating officer enquiry and calling for report or evidence within 90 days
from issue of show cause notice may pass following orders:-
a) Continue with the attachment
NOTES :-

4
b) Released with attached property

c) Attach the property
▪ Initiating officer pass an order of provisionally attachment and draw a

statement within 15days and refer to adjudicating authority.
▪ Adjudicating authority shall within 30days from reference issue notice to

parties (joint ownership to all person).
▪ If notice send to one party, the notice shall not be invalid.
▪ Adjudicating authority pass the order.
➢ Manner of service notice:-

✓ Individual = such individual.
✓ Firm = managing partner.
✓ Huf = Karta / members.
✓ Company = principal officer.
✓ Other association = principal officers.
✓ Other person = person who manage or control the affairs.
➢ Adjudicating of benami property (26)
▪ On receipt of reference adjudicating authority issue notice to furnish

such document particulars on the following person:-
a) Benamidar.
NOTES :-

5
b) Beneficial owner.
c) Interested party including a banking company.
d) Any person who make a claim in respect of property.
▪ Notice issue within 30days from reference.

▪ Notice provide minimum 30days to furnish information.
▪ Joint owner serve notice to all person.
▪ Adjudicating authority consider the reply and consider all the evidence,
material fact provide OOBH to owner.
▪ Adjudicating authority pass the following order:-
a) Declare the property a benami and revoke the attachment order

OR
b) Holding the property to be benami and confirming the attachment order
▪ Where some part of the property is benami than Adjudicating authority
shall record a finding to the best of his judgment as to which party or
property is held benami.
▪ If Adjudicating authority think any other property is benami then it shall
provisionally attach the property.
▪ Adjudicating authority may add or struck out to the name of any party
Sun-Motto or on the application of any party.
▪ Disposal within 1year from end of the month of reference.
▪ Administrator consist a chair person or at least 2 member.
▪ Central government can appoint one or more Adjudicating authority.
NOTES :-

6
➢ Confiscation of property
• Confiscation order after giving OBBH.
• If appeal is filled then confiscation after the order of adjudicating
authority.
• After order all right and tittle rest within central government free from
encumbrance and no compensation shall be payable.
• Possession shall be given to administrator appoint by central
government.
• Administrator shall serve notice within 7days from notice surrender the
benami property.
• Order is not complied – forcibly.
➢ Appeal
1. AA – AT
2. AT – HC (60days)
▪ Question of Law
▪ Penalty for false information-jail upto 5years and fine extend to 10% of
fair market value of the property.
NOTES :-

19.1
PREVENTION OF MONEY LAUNDERING ACT, 2002

• Money laundering
➢ Conversion of Black Money into white money.
➢ Criminal activity generates substantial profits and route the fund to safe
heavens.
• Source of black money

➢ Smuggling
➢ Terrorism
➢ Drug trafficking
➢ Sex rackets
➢ Insider trading
➢ Scams
NOTES :-
CS SHUBHAM ABAD Prevention of Money laundering UNIQUE ACADEMY

19.2
• Process of Money laundering

1. Placement
➢ Initial entry of dirty cash or proceeds of crime into financial system.
➢ Stage Places money into legitimate financial system.
➢ Launderer introduce his initial profits to financial system by breaking large
amount of cash into smaller amount and then depositing directly into bank or
by purchasing a series of monetary instruments.
2. Layering
➢ Launderer engage is a series of conversion to distance them from their source.
➢ Purpose of this stage is to separate the illegal money from its source.
3. Integration
➢ Final stage in which launderer may choose to invest the fund into real estate,
luxury asset or business ventures.
• Object of the Act
➢ Prevent money laundering
➢ Confiscate the property derived from or involved in money laundering
➢ Punish the people involved in the money laundering
• Person in default
➢ Person who
o Knowingly entered into transaction related to proceeds of crime
o Acquire or own or possess or transfer the proceeds of crime
o Conceal proceeds of crime
• Proceeds of crime
➢ Property derived or obtain directly or indirectly
➢ As a result of criminal activities (schedule offence)
➢ Or value of any such property
NOTES :-

19.3
• Punishment of money laundering-

1) Proceeds of crime related to narcotic drugs
o Minimum 3years and maximum 10years and fine
o Confiscate the proceeds of crime
2) Any other case
o Imprisonment for minimum 3years and maximum 7years and fine
o Confiscate the proceeds of crime
• Obligation of banking companies or FI and Intermediary

➢ Applies to bank or FI or intermediaries
➢ Maintain records of all transactions it’s nature and value
➢ Maintain the data of all the clients
➢ Report doubtful transaction to director
➢ Record shall preserve for a period of 10years
➢ Furnish records of all transactions it’s nature, value to director within specified
time
➢ Punishment minimum-10,000 but may extend to 1,00,000
• Summon, Search and Seizure

➢ Any officer who has sufficient reasons to believe that an offence is
committed has power:
a) To enter any place within the limit of area assigned
b) To Place identification marks on the records inspected by him
c) Search that convicted person or seize such record or property which is relevant
for any proceeding
➢ Retention of property for a period not exceeding 180days from its actually
seized
➢ After expiry of 180days the property shall be returned to the person unless
authority permits retention beyond the said period
• KYC Norms
NOTES :-

19.4
➢ Circular passed by RBI on KYC Norms

• Objective
➢ Prevent bank from being used in money laundering or terrorist financing
➢ Enable bank to know their customers
➢ Manage their risks efficiently
• When does KYC apply?

➢ Opening a new account
➢ Opening a subsequent account when initially KYC document not been
submitted
➢ Opening a locker facility where KYC are not available
➢ Non-account holder who approaches bank for high value transactions
• Element of KYC policy

➢ Customer acceptance policy
➢ Customer Identification procedures
➢ Monitoring of transactions and
➢ Risk management
• Information to be preserved of records

➢ Nature, date, amount, parties and currency involved in transactions.
• Obligation of bank
➢ Information of customer shall be kept confidential
➢ Ensure remittance of fund for value of Rs5000 and above is to be affected
debit to customer account or by cheque
➢ Amendment in FCRA is to be ensured by bank
➢ Bank shall pay attention to all complex, unusual large transactions and all
unusual patterns of transactions.
NOTES :-

19.5
• Introduction of new technologies: Credit cards/ Debit

Cards/ Smart Cards/ Gift Cards
➢ Bank shall pay Special attention to any money laundering threats that may
arise from new or developing technologies including internet banking
➢ Ensure full compliance with KYC or AMC or CFT(combating the financing of
terrorism) guidelines issued
➢ Marketing of credit card is generally done through services of agents
➢ Agent should also be subjected to KYC Measures
• Reporting to financial intelligence unit- India

➢ Bank is required to report information relating to cash and suspicious
transaction and all transaction involving receipts by NGO of value more than
Rs10,00,000 or its equivalent in foreign currency to director or financial
intelligence unit India
• Adjudicating Authority
➢ Central Government can appoint one or more persons not below the rank of
Joint Secretary to the Government of India as adjudicating authority
➢ Adjudicating authority on receipt of complaint from director serve a show
cause notice of not less than 30days
➢ Within 30days such person shall disclose the source of income, earning or
assets by means of which he has acquired the property attached
• Appellant Tribunal
➢ Establish by Central Government by notification in official gazette
➢ To hear appeals against the order of adjudicating officer and other authority
➢ Appeal within 45days
➢ Extension→on sufficient grounds
➢ Appellant tribunal→confirm
→Modify
→Or set aside the order
NOTES :-

19.6
➢ Appeal shall Disposed within 6 months of filing appeal

• Special court
➢ Central Government to designate in consultation with the chief justice of the
High court
➢ One or more Courts of Session as special court
➢ Every offences punishable under the act is Cognizable
➢ Person accused for a term exceeding 3years shall not be released on bail
➢ Special court shall not take cognizance of any offence except made by director
or any officer of Central Government
• Vienna convention in 1988
➢ First convention of United Nations member’s
➢ Member were agreed to promote international co-operation to combat money
laundering
• Establishment of FATF(Financial Action Task Force)

➢ Development and promotion of policies to prevent money laundering and
terrorism financing
➢ Inter- governmental body and was established with aim to develop and
promote of the policies in relation to money laundering
• Objective of FATF
➢ Combat money laundering and laundering
➢ Implement measures to counter the use of financial system
➢ Establish a series of recommendation and ensure they remain up to date
➢ Monitor, review the money laundering financing techniques
➢ Promote the adoption and implementation of appropriate measures globally
• United Nations Global Programme against Money

Laundering
NOTES :-

19.7
➢ Offence of drug control and crime prevention implement this programme

against money laundering
➢ Technical co-operation is the main task of this programme.
➢ Encompasses activities of creating awareness, institution building and training
➢ Research and analysis to enable the international community to devise more
efficient and effective counter-measure strategies.
NOTES :-

21.1
➢ Introduction and Objective: -

o Specific relief act 1963 was enacted to define and amend law relating to certain kinds
of specific relief.
o This law has been amended and it came into effect from 1st October,2018.
➢ Recovery of possession of property: -
➢ Recovery of specific immovable property (Section 5)-
o According to Section 5 any person entitled to possession of specific immovable
property may recover it in the manner provided by CPC 1908
➢ Suit by person dispossessed of immovable property (Section 6)-

o If any person is dispossessed without his consent of immovable property otherwise
than in due course of law he may file suit for recovery of possession
o Suit under Section 6 cannot be brought
a) After expiry of 6month from the date of dispossession
NOTES :-
CS SHUBHAM ABAD SPECIFIC RELIEF ACT,1963 UNIQUE ACADEMY

21.2
b) Against the government

o There is no right of appeal and review from any order or decree passed under Section 6
➢ Recovery of specific movable property (Section 7)

• Any person entitle to possession of specific movable property may recover it in the
manner provided by CPC 1908
➢ Liability of a person in possession not as owner to delivered to

persons entitled to immediate possession (Section 8): -
➢ If any person who is not the owner but having possession or control of
particular article of movable property, may be compelled to deliver it in
following cases:
a) When things claimed is held by defendant as agent or trustee of plaintiff
b) When compensation in money is not adequate relief
c) It is difficult to ascertain actual damage
d) Thing is wrongfully transfer from the plaintiff
➢ Defenses Respecting suits for relief based on contract (Section 9): -

• According to Section 9 where any relief is claimed in respect of a contract. The person
against whom relief is claimed can have a defence on any ground which is available to
him under any law relating to contract.
➢ Cases in which specific performance of contract connected with trust

enforceable (Section 11): -
• It provides that contract can be enforced specifically (specific performance) wholly or
partly against trust
• But a contract made by trustee in excess of his powers or in breach of trust cannot be
specifically enforced.
NOTES :-

21.3
➢ Specific performance of part of contract (Section 12):-

• Court generally does not grant specific performance for part of contract. But court may
direct specific performance of part of contract if:
a) Part left under performed is a small portion and can be compensated in money
b) If unperformed part is considerably large and plaintiff relinquished all claims to the
performance of remaining part and all right to compensation
➢ Contracts not specifically enforceable (Section 14):

• Party to the contract has obtained substituted performance
• A contract where court cannot Supervise
• A contract which is dependent on personal qualification
• A contract which is determinable in nature
➢ Contract to sell or let property by one who has no title, not specifically
enforceable (Section 17): -
• A contract to sell or let any immovable property cannot be specifically enforced in
favour of vendor or lessor
a) Who knowingly himself not to have any title of property has contracted to sell or let
b) Who believe he had a good title but cannot give a free title to purchase or lessee
afterwards
• These provisions apply to contract of sale or hire of movable property
➢ Who may obtain specific preformation (Section 15):

• Parties to the contract
• Representative in interest
• Any person beneficially entitled
• Reversioner
• Remainder men (who has remaining interest in property)
NOTES :-

21.4
• Contract done by LLP but afterwards amalgamated than amalgamated LLP i.e., new
LLP arising out of amalgamation can obtain specific performance
• Company→ same as LLP
• Pre-incorporation contract
➢ Person bars to relief (Section 16): -

• Specific performance of contract cannot be enforced against a person: -
1) Who has obtained substituted performance
2) Who has become incapable of performing
3) Who has violated any essential terms of contract
4) Who act in a fraudulent manner
5) A person who varies the terms and condition of contract in wrongful manner
6) A person who fails to perform his part of contract
NOTE: - In order to obtain specific performance plaintiff must prove his willingness to
perform his part of contract.
➢ Person against whom contract may be specifically performed (Section 19): -

• Party
• Any person claiming under him by a title arising subsequently to the contract
• Amalgamated LLP
• Amalgamated company
• Pre-incorporation contract
➢ Substituted performance of contract (Section 20): -

• When contract is broken due to non-performance of promise by any party, Party who
suffers (aggrieved party) have an option of substituted performance through a third
party or his own agency and recover the expenses from the party committing such
breach.
NOTES :-

21.5
• Party who suffers breach have to give 30 days notice to perform the contract, before
availing substituted performance.
➢ Special provision for contract relating to infrastructure project

(Section 20A): -
• No injunction shall be granted by a court in a suit under this act relating to
infrastructure project
• Section 20(B): - State Government in consultation with chief justice of high court
shall designate one or more civil court as special court in respect of contract relating to
infrastructure project.
• Section 20(C): - Suit must be disposed with in 12months from the date of service of
summon to defendant. Maximum extension of 6months can be granted by court.
➢ Declaratory decree (Section 34): -

• Declaratory decree is a decree which declares right as to any property or the legal
character
• Declaration is asked for right to property only
• Plaintiff is not able to claim further relief other than declaration
➢ Effect of declaration (Section 35): -

• When a declaration decree is passed it is binding on following person:
1. Parties to the suit
2. Person claiming through them
3. Trustees
• Declaration is jus-in-personam and not jus-in-rem which means it is not binding on
stranger
➢ Preventive relief or injunction: -
NOTES :-

21.6
• Preventive relief means a relief where party to contract is prevented from during
particular act
• It is always discretion of court, injunction is the judicial process
➢ Types of Injunction: -
1. Temporary Injunction: -
• It means an injunction which is to continue until a specific time or until future order of
the court
• It may be granted at any stage of suit and does not concluded determine the right. It is
also known as Interim Injunction
2. Perpetual Injunction: -
• It is granted by decree made at the hiring and made upon the merits of the suit. It is
granted only after full trial or hiring of the case, when right is formly established
3. Mandatory Injunction: -
• Sometimes to prevent breach of obligation it is necessary to compel performance of
certain acts. Court may grant injunction to prevent the breach completion of and also
to comply performance of requisite act is known as Mandatory Injunction.
4. Ex-party Injunction: -
• When injunction is granted in favour of one party without hearing of other party it is ex-
party injunction
➢ Injunction to perform negative agreement (Section 42): -

• Sometime contract may comprise of two agreement i.e. an affirmative agreement
which means to do something and negative agreement which means not to do
something.
• In such a case court is unable to compel specific performance of affirmative agreement
but it may grant an injunction to perform negative agreement.
• But a contract must be divisible and negative part must be capable of being separated
from the rest of contract
NOTES :-

21.7
• Example: Mr. Naidu contracts with Miss Sania to sing for 12months at Mr. Naidu's
theatre and no to sing public elsewhere. Mr. Naidu cannot obtain specific performance
of contract to sing but he is entitled to an injunction restraining Miss. Sania from
singing at any other place of public entertainment.
NOTES :-

EBCL Summary Notes

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

EBCL Summary Notes

Uploaded by

Copyright:

Available Formats

CS EXECUTIVE

SPECIAL THANKS TO: -

ASHISH & SIMPLE PARIKH FOR YOUR

STUDENTS FOR WHICH EVERY THING IS. LOVE YOU ALL

➢ Person Resident in India: -

➢ Person Resident Outside India: -

• Regulated and control • Manage the foreign

• Strict Act • Liberal act

• Criminal liability • Civil liability

• Few Transaction are • Few transactions

• No name for Transaction • Transaction are

➢ Capital account transaction: -

➢ Current account transaction: -

➢ Restricted current account transaction: -

❖ These transactions are permitted with approval of CG

➢ Permitted with the approval of RBI: -

❖ PRI (Person Resident in India)-

❖ PROI (Person Resident Outside India): -

➢ Acquisition and transfer of IP outside India by PRI: -

• Company having overseas office -

Recurring expense: - 10% of Average annual turnover during

➢ Acquisition and Transfer of IP in India: -

a) Purchase of IP - other than agriculture land /plantation

➢ Acquisition and transfer of IP by PIO: -

• Purchase - other than agriculture land/plantation/ farm house.

➢ Realisation, Repatriation and surrender: -

➢ Surrender of foreign exchange: -

❖ Non-individual resident (PRI) →

❖ Individual resident (PRI) →

➢ Possession and retention: -

→ Authorised person - without limit

→ PRI but not permanent resident - Posses without limit if acquired

• Remittance outside India of fund in a deposit with a

→ Remittance upto USD 1 million prefer account submission of

• Central government by notification in official gazette.

➢ Compounding and contravention: -

→ Voluntary admitting the contravention, pleading guilty and seeking

UNIQUE ACADEMY FOR COMMERCE

Prohibition to Accept Foreign Contribution (Section 3): -

Restriction on Acceptance of Foreign hospitality: -

UNIQUE ACADEMY FOR COMMERCE

Power of Central Government with Respect of Foreign

Condition for getting COR application shall not be: -

Acceptance of foreign contribution by any person is not

a) Sovereignty and integrity of India

UNIQUE ACADEMY FOR COMMERCE

Acceptance of foreign contribution: -

a) Not lead to offence.

❖ CG has power to cancel if –

▪ Within 6 months before expiry of period.

UNIQUE ACADEMY FOR COMMERCE

Foreign contribution through Scheduled Bank: -

a) Reserve foreign contribution through one account

Intimation to Central Government: -

Intimation by Candidate for Election: -

Penalty and Punishment: -

❖ Contravention of prohibitory order served -

❖ Accepting foreign contribution in contravention of the Act-

UNIQUE ACADEMY FOR COMMERCE

Organisation of a Political Nature: -

❖ Central Government specify by order in the Official Gazette with

UNIQUE ACADEMY FOR COMMERCE