Ebcl Hacking June 2023 (1)

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CS EXECUTIVE
HACKING EBCL
IT IS THE PRIORITY OF TOPICS AND NOT COVERAGE OF 100% OF
SYLLABUS
IT IS NOT AN ASSURANCE OF COMING IN EXAM, BUT IT IS THE

HACKING OF PAST EXAMINATION AND SHARING VIEW.
Sr.No TOPIC Page.No

1 RBI ACT 1934 2-3
2 FEMA 1999 4
3 FEMA CURRENT & CAPITAL ACCOUNT TRANSACTION 5-6
LIBERALIZED REMITTANCE SCHEME
4 FEMA-FOREIGN DIRECT INVESTMENT IN INDIA 7-9
5 FEMA-DIRECT INVESTMENT OUTSIDE INDIA 10
6 EXTERNAL COMMERCIAL BORROWINGS 11
7 FOREIGN CONTRUBUTION (REGULATION) ACT2010 12 - 14
8 FOREIGN TRADE POLICY AND PROCEDURES 15 - 19

9 NON BANKING FINANCE COMPANIES 20
10 SPECIAL ECONOMIC ZONES ACT 2005 21 - 24
11 COMPETITON ACT 2002 25 - 30
12 CONSUMER PROTECTION ACT 2019 31 - 34
13 ESSENTIAL COMMODITIES ACT 1955 35 - 39
14 LEGAL METROLOGY ACT 2009 40 - 42
15 TRANSFER OF PROPERTY ACT 1882 43 - 50
16 TRANSFER OF PROPERTY ACT 1882 51 - 52
17 BENAMI TRANSACTION (PROHIBITION) ACT 1988 53 - 55
18 PREVENTION OF MONEY LAUNDERING ACT 2002 56 - 59

19 CONTRACT ACT 1872 60 - 65
20 SPECIFIC RELEIF ACT 1963 66 - 67
21 SALE OF GOODS ACT 1930 68 - 74
22 PARTNERSHIP ACT 1932 75 - 77
23 NEGOTIABLE INSTRUMENT ACT 1881 78 - 83
 CA MAYUR AGARWAL
CA Mayur Agarwal Inspire Academy

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Chapter 1: RBI ACT 1934
PAST PAPER CONCEPTS

 Functions of RBI
 RBI is a banker of bank
 How Monetary policy committee constituted under the RBI act 1934 and its functions.
 Reserve bank of India as custodian of foreign exchange reserve
LESSONS TO BE ROUNDED OFF

 The Preamble to the Reserve Bank of India Act, 1934 under which it was constituted,
specifies its objective as regulation of the issue of Bank notes and the keeping of
reserves with a view to securing monetary stability in India, generally to operate the
currency and credit system of the country to its advantage and operation of the
monetary policy framework in India.
 The Central Board of Directors is at the top of the Reserve Bank’s organizational
structure. Appointed by the Government under the provisions of the Reserve Bank of
India Act, 1934, the Central Board has the primary authority and responsibility for the
oversight of the Reserve Bank. It delegates specific functions to the Local Boards and
various committees. The Governor is the Reserve Bank’s chief executive
 The Government of India on the advice of the Reserve Bank decides on the various
denominations of the currency notes to be printed. The Reserve Bank coordinates
with the Government in designing the banknotes, including their security features.
 Monetary policy refers to the policy of the central bank with regard to the use of
monetary instruments under its Control to achieve the goals specified in the Act.
 The Reserve Bank of India (RBI) is vested with the responsibility of conducting
monetary policy. This responsibility is explicitly mandated under the Reserve Bank of
India Act, 1934.
 The primary objective of monetary policy is to maintain price stability while keeping
in mind the objective of growth. Price stability is a necessary precondition to
sustainable growth.
 Repo Rate is the fixed interest rate at which the Reserve Bank provides overnight
liquidity to banks against the collateral of government and other approved securities
under the liquidity adjustment facility (LAF).
 Reverse Repo Rate is the fixed interest rate at which the Reserve Bank absorbs
liquidity, on an overnight basis, from banks against the collateral of eligible
government securities under the liquidity adjustment facility (LAF)

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HIGHLITED PART IN MODULE
Origin of the Reserve Bank of India at a glance

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Chapter 2: FEMA 1999
PAST PAPER CONCEPTS

 SECTION 2(n) Foreign exchange
 SECTION 2(o) Foreign security
 SECTION 2(u) Person
 SECTION 2(c) Authorised person
 SECTION 4 Person resident India can acquire, hold, own, possess or transfer any
foreign exchange only after compliance
 REGULATION 3 Limit for possession and retention of foreign currency or foreign
coins
 SECTION 2(y) Repatriate to India
 Section 8 Realization & repatriation of foreign exchange
 SECTION 9 Exemption from realization and repatriation in certain cases
 SECTION 11 RBI’S power to issue directions to authorised person
 SECTION 10(1) & (2) Authorization to act as authorized person
 SECTION 8 A person resident in India shall take all reasonable steps to realize and
repatriate
 SECTION 15 Compounding of offence
 SECTION 15(1) Power to compound contravention
 SECTION 15(2) No further proceedings after compounding 16 SECTION 13 Penalty
 SECTION 18 Establishment of appellate tribunal
 SECTION 19(1) Appeal to Appellate tribunal
 SECTION 20 Composition of Appellate tribunal

 The Foreign Exchange Management Act has repealed the FERA.
 The Foreign Exchange Management Act, 1999 is an Act to facilitate external
tradeand payments and for promo ng the orderly development and
maintenance of foreign exchange market in India.
 Foreign Exchange Management Act, 1999 extends to the whole of India.
The Act alsoapplies to all branches, offices and agencies outside India
owned or controlled by a person resident in India and also to any
contraven on there under commi edoutside India by any person to whom
this Act applies.
 FEMA makes provisions for dealings in foreign exchange. Broadly, all Current
Account Transac ons are free. However Central Government can impose
reasonablerestric ons by issuing Rules.

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Chapter 3: FEMA CURRENT & CAPITAL ACCOUNT

TRANSACTION, LIBERALISED REMITTANCE SCHEME
PAST PAPER CONCEPTS
 SECTION 2(j) Current account transaction
 SECTION 5 Provision regarding CAT
 RULE 3 Transaction for which drawal of foreign exchange is prohibited
 RULE 4 Foreign exchange can be drawn with prior approval of CG
 RULE 5 Foreign exchange can be drawn with prior approval of RBI
 REGULATION 3 Restriction on acquisition and transfer of immovable property
outside India
 REGULATION 5 Acquisition and transfer of immovable property outside India

 As liberalization measure to facilitate resident individuals to remit funds abroad for
permitted current or capital account transactions or combination of both Reserve Bank
of India issues Liberalised Remittance Scheme.
 The Scheme is available to all resident individuals including minors.
 Remittances under the Scheme can be consolidated in respect of family members
subject to individual
 Family members complying with its terms and conditions.
 For private visits abroad, other than to Nepal and Bhutan, any resident individual can
obtain foreign exchange up to an aggregate amount of USD 2,50,000, from an
Authorised Dealer in any one financial year, irrespective of the number of visits
undertaken during the year.
 The individual will have to designate a branch of an AD through which all the
remittances under the Scheme will be made. The resident individual seeking to make
the remittance should furnish Form A2 for purchase of foreign exchange under LRS.

Permissible capital account transactions by an individual under LRS

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Prohibited Transactions
Prohibition on drawal of foreign exchange for certain transactions

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Chapter 4: FEMA – FOREIGN DIRECT INVESTMENT IN INDIA
PAST PAPER CONCEPTS

 RULE 6 A person resident in India may subscribe, purchase, or sell capital instrument
 RULE 7 A person resident outside India having instrument in an India may
make investment in capital instrument
 Automatic route and government route
 Depository receipts
 Person of Indian origin
 Distinguish depository receipts and foreign currency convertible bonds
 Method of funding of FDI under FEMA
 Foreign currency convertible bond
 Sectors where FDI is prohibited
 Intent and obligation of FDI under FEMA
 RBI approval is not mandatory for transfer of capital instrument from resident
tonon-resident
 Eligibility criteria for forming the trust under Indian trust act
 Condition to allot sweat equity share to resident outside India
 LLP is permitted in FDI
 Sectors where FDI is prohibited
 “FDI” or “Foreign Direct Investment” means investment through equity

instruments by a person resident outside India in an unlisted Indian company; or in
ten per cent or more of the post issue paid- up equity capital on a fully diluted basis
of a listed Indian company.
 A non-resident entity can invest in India, subject to the FDI Policy except in those
sectors/activities which are prohibited. However, an entity of a country, which shares
land border with India or where the beneficial owner of an investment into India is
situated in or is a citizen of any such country, can invest only under the Government
route.
 A citizen of Pakistan or an entity incorporated in Pakistan can invest, only under the
Government route, in sectors/activities other than defence, space, atomic energy and
sectors/activities prohibited for foreign investment.
 Indian companies can issue capital against Foreign Direct Investment.
 Indian companies which are eligible to issue shares to person’s resident outside India
under the FDI Policy may be allowed to retain the share subscription amount in a
Foreign Currency Account, with the prior approval of RBI.

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 FDI is permitted under the automatic route in Limited Liability Partnership (LLPs)
operating in sectors/ activities where 100% FDI is allowed through the automatic
route and there are no FDI-linked performance conditions.
 FDI is allowed under the automatic route without prior approval either of the
Government or the Reserve Bank of India in all activities/sectors as specified in the
consolidated FDI Policy, issued by the Government of India from time to time.
 FDI in activities not covered under the automatic route requires prior approval of the
Government. Proposals for foreign investment under Government route, are
considered by respective Administrative Ministry/Department.
 If a person violates/contravenes any FDI Regulations, by way of breach/non-
adherence/non- compliance/ contravention of any rule, regulation, notification, press
note, press release, circular, direction or order issued in exercise of the powers under
FEMA or contravenes any conditions subject to which an authorization is issued by
the Government of India/ Reserve Bank of India, he shall, upon adjudication, be liable
to a penalty.
GENERAL CRITERIA

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Remittance of profit/surplus
Requests for closure of the BO/LO/PO and submit the application along with following
documents for remittance of winding up proceeds of BO/LO/PO to the designated AD
Category- I bank
 Copy of the Reserve Bank’s/AD Category- I bank’s approval
 Auditor’s certificate
 Confirmation from the applicant/parent company that no legal proceedings is
pending in any court in India;
 A report from the Registrar of Companies regarding compliance with the
provisions of the companies Act, 2013;
 The designated AD category- I bank has to ensure that the BO/LO/PO had filed their
respective AACs; and
 Any other document/s, specified by reserve Bank of India / AD category-I bank
Designated AD category- I bank may allow remittance of winding up proceeds in respect of
offices of bank and insurance companies, after obtaining copies of permission of closure
from the sectoral regulators along with the documents mentioned above.

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Chapter 5: FEMA DIRECT INVESTMENT OUTSIDE INDIA
PAST PAPER CONCEPTS

 RULE 4 PRI may purchase a foreign security out of funds in RFC account
 REGULATION 6(1) Indian party may make investment in JV/WOS
 REGULATION 3 Restriction on acquisition or transfer of immovable property outside
India
 REGULATION 5 Acquisition or transfer of immovable property outside India
 SECTION 6(4) Person resident in India may hold, own, transfer or invest in foreign
currency
 Eligibility criteria for overseas investment by proprietorship and registered trust
 Proprietorship concerns
 Registered trust
 Eligibility criteria for trust

 Overseas investments (or financial commitment) in Joint Ventures (JV) and
Wholly OwnedSubsidiaries (WOS) have been recognised as important avenues for
promoting global business by Indian entrepreneurs.
 “Financial Commitment” means the amount of direct investment by way of
contributionto equity, loan and 100 per cent of the amount of guarantees and 50
per cent of the performance guarantees issued by an Indian Party to or on behalf
of its overseas Joint Venture Company or Wholly Owned Subsidiary.
 Indian party/ Resident Individual is required to route all transactions in respect of a
particular overseas JV/WOS only through one branch of an Authorized Dealer. This
branch would be the ‘designated Authorised Dealer’ in respect of that JV/WOS and
all transactions and communications relating to the investment in that particular
JV/WOS are to be reportedonly through this ‘designated’ branch of an Authorized
Dealer.
 An Indian Party is a company incorporated in India or a body created under
an Act ofParliament or
 a partnership firm registered under the Indian Partnership Act 1932 or a Limited
Liability Partnership (LLP) incorporated under the LLP Act, 2008 and any other
entity in India as maybe notified by the Reserve Bank.When more than one such
company, body or entity makes investment in the foreign JV / WOS, such
combination will also form an “Indian Party”.
 An Indian Party receive share certificates or any other documentary evidence of
investment in the foreign JV / WOS as an evidence of investment and submit the same
to the designated AD within 6 months and repatriate to India, all dues receivable from
the foreign JV / WOS, like dividend, royalty, technical fees etc.

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Chapter 6: EXTERNAL COMMERCIAL BORROWINGS
PAST PAPER CONCEPTS

 Foreign currency convertible bond
 External commercial borrowing
 FCCB and ECB
 FCCB and FCEB
 ECB and the types
 Advantages of FCEB over FCCB
 Benefits of FCCB
 Conversion of ECB into equity
 Who can access ECB
 End use of ECB under approval route
 Parking of ECB
 Conversion of ECB into equity is permissible

 External Commercial Borrowings are commercial loans raised by eligible resident
entities from recognised non-resident entities and should conform to parameters such
as minimum maturity, permitted and non-permitted end-uses, maximum all-in-cost
ceiling, etc.
 External Commercial Borrowings Framework enables permitted resident entities to
borrow from recognized non-resident entities.
 For conversion of ECB dues into equity, the exchange rate prevailing on the date of
the agreement between the parties concerned for such conversion or any lesser rate
can be applied with a mutual agreement with the ECB lender.
 Under External Commercial Borrowings Framework, borrowers may approach the
RBI with an application in prescribed format Form ECB for examination through their
AD Category I bank. Such cases shall be considered keeping in view the overall
guidelines, macroeconomic situation and merits of the specific proposals.
 Borrowings under ECB Framework are subject to reporting requirements Loan
Registration Number, Changes in terms and conditions of ECB and Reporting of
actual transactions.

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Chapter 7: FOREIGN CONTRIBUTION (REGULATION) ACT, 2010
PAST PAPER CONCEPTS
 SECTION 2(1)(h): Foreign contribution

 Legalise foreign donation and hospitality to office bearers of political parties
 SECTION 3: Person prohibited from accepting foreign contribution (repeated)
 SECTION 4: Exemption to the prohibition of accepting
 SECTION 6 Person cannot receive foreign hospitality visiting any country
without prior permission of CG
 SECTION 9: Power of the CG to prohibit receipt
 SECTION 14: Cancellation of certificate
 SECTION 16: Application for renewal of certificate
 SECTION 28: Confiscation of article or currency or security obtained in
contravention of the act
 SECTION 29: Adjudication of confiscation
 SECTION 30: Procedure for confiscation
 SECTION 34: Penalties and punishment
 SECTION 35: Punishment for contravention of any provision of the act
 SECTION 39: Offence by companies
 SECTION 41: Composition of certain offence

 FCRA, 2010 regulate the acceptance and utilisation of foreign contribution or
foreign hospitality by certain individuals or associations or companies and to
prohibit acceptance and utilisation of foreign contribution or foreign hospitality
for any activities detrimental tothe national interest and for matters connected
therewith or incidental thereto.
 In order to streamline the provisions of the Foreign Contribution (Regulation)
Act, 2010 bystrengthening the compliance mechanism, enhancing
transparency and accountability in thereceipt and utilisation of foreign
contribution worth thousands of crores of rupees every ear and facilitating
genuine non-Governmental organisations or associations who are working for
the welfare of the society, Parliament enacted the Foreign Contribution
(Regulation) Amendment Act, 2020.
 The Act provides that persons having definite cultural, economic, educational,
religious and social programmes should get themselves registered with the
Government of India before accepting any ‘foreign contribution’. In case a person
falling in the above category is not registered with the Central Government, it can
accept foreign contribution only after obtaining prior permission of the Central
Government.
 Central Government is empowered to prohibit any person or organisation not
specified inthe Act from accepting any foreign contribution and to require any

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person or class of persons, not specified in it to obtain prior permission of the

Central Government before accepting any foreign hospitality.
 Associations which were granted certificates of registration, such registration shall
be validfor a period of five years.
 Any offence punishable under this act (whether committed by an individual or
associationor any officer or employee thereof), not being an offence punishable
with imprisonment only, may, before the institution of any prosecution, be
compounded by such officers or authorities and for such sums as the central
government may, by notification in the official gazette, specify in this behalf.

Who cannot receive foreign contribu on?
As defined in Section 3(1) of FCRA, 2010, the following are prohibited to receive
foreign contribution:
Candidate for election; Correspondent, columnist, cartoonist, editor, owner, printer or

publisher of a registered newspaper; Public Servant, Judge, Government servant or
employee of any corporation or any other body controlled or owned by the
Government;
Member of any legislature; Political party or office bearer thereof; Organization of a

political nature as may be specified under sub-section (1) of Section 5 by the Central
Government.
Association or company engaged in the production or broadcast of audio news or
audio visual news or current affairs programmes through any electronic mode, or any
other electronic form as defined in clause (r) of sub-section (1) of Section 2 of the
InformationTechnology Act, 2000 or any other mode of mass communication;
Correspondent or columnist, cartoonist, editor, owner of the association or company
referred to in above point. Individuals or associations who have been prohibited from
receiving foreign contribution.
Who can receive foreign contribution?
Any “Person” can receive foreign contribution subject to the following conditions:-
It must have a definite cultural, economic, educational, religious or social programme. It must
obtain the FCRA registration/prior permission from the Central Government
It must not be prohibited under Section 3 of FCRA, 2010.
What is foreign hospitality?

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Foreign Hospitality means any offer, not being a purely casual one, made in cash or kind by
a foreign source for providing a person with the costs of travel to any foreign country or
territory or with free board, lodging, transport or medical treatment.
State the categories of persons requires prior approval from Ministry of Home Affairs before
accepting Foreign Hospitality?
The following categories of persons require prior approval from Ministry of Home
Affairs before accepting Foreign Hospitality:-
Members of a Legislature, Office bearers of political parties, Judges, Government
servants,Public Servants, Employees of any corporation or any other body owned or
controlled by the Government.
Provided that it shall not be necessary to obtain any such permission for an emergent medical
aide needed on account of sudden illness contracted during a visit outside India. But, where
such foreign hospitality has been received, the person receiving such hospitalityshall give an
intimation to the Central Government as to the receipt of such hospitality within one month
from the date of receipt of such hospitality, and the source from which, and the manner in
which, such hospitality was received.

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Chapter 8: FOREIGN TRADE POLICY & PROCEDURES
PAST PAPER CONCEPTS

 Privileges of star export house
 Board of trade
 Advance authorization scheme
 Short term and long term objectives
 Privileges and trading house status holders
 Describe SEIS and eligible services under service export
 Capital goods and consumer goods
 Capital goods and spares that have become obsolete/surplus may be exported,
transferred to another SEZ until but law does not permit to dispose of in domestic
tariff area on payment of applicable duties
 Objective of service export and eligibility condition of obtaining benefits under FTP

 India’s Foreign Trade Policy (FTP) has, conventionally, been formulated for five
years at a time and reviewed annually. The focus of the FTP has been to provide a
framework of rules and procedures for exports and imports and a set of incentives for
promoting exports.
 The Foreign Trade Policy is primarily focused on accelerating exports. This is sought
to be implemented through various schemes intended to exempt and remit indirect
taxes on inputs physically incorporated in the export product, import capital goods at
concessional duty, stimulate services exports and focus on specific markets and
products.
 The Foreign Trade Policy, 2015-20, is notified by Central Government, in exercise of
powers conferred under Section 5 of the Foreign Trade (Development & Regulation)
Act, 1992 (No. 22 of 1992) [FT (D&R) Act], as amended. The Foreign Trade Policy,
2015-20 came into force with effect from 01.04.2015.
 Capital Goods means any plant, machinery, equipment or accessories required for
manufacture or production, either directly or indirectly, of goods or for rendering
services, including those required for replacement, modernisation, technological up-
gradation or expansion. It includes packaging machinery and equipment, refrigeration
equipment, power generating sets, machine tools, equipment and instruments for
testing, research and development, quality and pollution control.
 An Importer-Exporter Code (IEC) Number is a 10-digit number allotted to a person
that is mandatory for undertaking any export/import activities. Now the facility for
IEC in electronic form or e-IEC has also been operationalised.

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 The objective of the Export from India Schemes is to provide rewards to exporters
to offset infrastructural inefficiencies and associated costs involved and to provide
exporters a level playing field.
 Status Holders are business leaders who have excelled in international trade and
have successfully contributed to country’s foreign trade. Status Holders are
expected to not onlycontribute towards India’s exports but also provide guidance
and handholding to new entrepreneurs.
 The objective of the Export Promotion Capital Goods(EPCG) Scheme is to
facilitate import of capital goods for producing quality goods and services to
enhance India’s export competitiveness.
 Units undertaking to export their entire production of goods and services (except
permissible sales in DTA), may be set up under the Export Oriented Unit (EOU)
Scheme, Electronics Hardware Technology Park (EHTP) Scheme, Software
Technology Park (STP) Scheme or Bio-Technology Park (BTP) Scheme for
manufacture of goods, including repair, re-making, reconditioning, re-
engineering, rendering of services, development of software, agriculture including
agro-processing, aquaculture, animal husbandry, biotechnology, floriculture,
horticulture, pisciculture, viticulture, poultry and sericulture. Trading units are not
covered under the scheme.
PRINCIPLES OF RESTRICTIONS

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Export Obligation
DUTY FREE IMPORT AUTHORISATION SCHEME (DFIA)

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Eligibility of DFIA
Export through Exhibitions/Export Promotion Tours/Showrooms Abroad/Duty Free

Shops

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Quality Complaints/ Trade Disputes

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Chapter: 9 NON BANKING FINANCE COMPANIES
PAST PAPER CONCEPTS

 Regula on regarding to acceptance of deposit by NBFC
 Explain NBFC and powers of RBI vested in RBI Act for regula ng NBFC3 NBFC differ
from banks
 SECTION 45-1A: Requirement for registra on of NBFC with RBI
 NBFC systema cally important non deposit company and deposited taking company
direc ons

 The Reserve Bank of India is entrusted with the responsibility of regula ng
and supervising the Non-Banking Financial Companies by virtue of powers
vested inChapter III B of the Reserve Bank of India Act, 1934.
 A Non-Banking Financial Company (NBFC) is a company registered under the

Companies Act, engaged in the business of loans and advances, acquisi on of
shares/stocks/bonds/debentures/ securi es issued by Government or local
authorityor other marketable securi es of a like nature, leasing, hire-purchase,
insurance business, chit business but does not include any ins tu on whose
principal business is that of agriculture ac vity, industrial ac vity, purchase or
sale of any goods (other than securi es) or providing any services and
sale/purchase/construc on of immovable property.
 The Reserve Bank has been given the powers under the RBI Act 1934 to register,
laydown policy, issue direc ons, inspect, regulate, supervise and exercise
surveillance over NBFCs that meet the 50- 50 criteria of principal business.
 The Reserve Bank can penalize NBFCs for viola ng the provisions of the RBI
Act orthe direc ons or orders issued by RBI under RBI Act.

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Chapter: 10 SPECIAL ECONOMIC ZONES ACT 2005
PAST PAPER CONCEPTS

 SEZ are engines of growth
 Features of SEZ
 SECTION 2(u): Offshore banking unit
 SECTION 5: Factors considered by CG while notifying and area as SEZ and
dischargingits functions
 SECTION 3: Who can establish SEZ
 SECTION 9: Power and functions of the board
 SECTION 10: Board of approval is empowered to suspend the letter of
approval granted to the developer
 SECTION 11: method of appointment and functions of the
developmentcommissioner
 SECTION 12(2) Function of development commissioner
 SECTION 14: Function and powers of approval committee
 SECTION 15(8) Approve, modify or reject proposal
 SECTION 34: SEZ cast upon the authority a duty to undertake such measures
for development, operation and management of SEZ
 SECTION 40(1): Powered to suspend authority
 SECTION 40(2): Effect of notification
 SECTION 40(3): Extension of the period of supersession and
reconstitution of authority
 SECTION 31(1): Constituted of authority
 SECTION 31(2): Authority to be body corporate
 SECTION 31(3): Head office
 SECTION 31(4): Branch office
 SECTION 31(9): Act of an authority not invalidated due to defect

 Special Economic Zones (SEZ) are growth engines that can boost manufacturing,
augment exports and generate employment. The SEZs require special fiscal and
regulatory regime in order to impart a hassle free operational regime encompassing
the state of the art infrastructure and support services.
 Special Economic Zone (SEZ) is a specifically delineated duty free enclave and
is deemedto be foreign territory for the purposes of trade operations and duties
and tariffs.
 SEZ units are governed by Special Economic Zones Act, 2005.
 Central Government, State Government, or any other person, jointly or severally,
may establish a Special Economic Zone. Any person who, intends to set up a
Special Economic Zone, may, after identifying the area, make a proposal to the
State Government concerned for the purposes of setting up a Special Economic

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Zone.
 Board of Approval granting of approval or rejecting proposal or modifying such
proposals for establishment of the Special Economic Zones.
 Every Development Commissioner to take steps in order to discharge his
functions to ensure speedy development of the Special Economic Zone and
promotion of exports therefrom.
 The Central Government to constitute by notification, a Committee for every
Special Economic Zone, to be called the Approval Committee to exercise the
powers and performthe functions as specified.
 Any person, who intends to set up a Unit for carrying on the authorised operations
in a Special Economic Zone, to submit a proposal to the Development
Commissioner concerned.
 An application for setting up and operation of an Offshore Banking Unit in a
SpecialEconomic Zone may be made to the Reserve Bank of India.
 SEZ Act casts upon the SEZ Authority a duty to undertake such measures as it
thinks fit for the development, operation and management of the respective Special
Economic Zone.
 Every person whether employed or residing or required to be present in a Special
Economic Zone shall be provided an identity card by every Development
Commissioner in prescribed form and containing specified particulars.
 Provisions of the SEZ Act shall have effect notwithstanding anything inconsistent
therewith contained in any other law for the time being in force or in any
instrument havingeffect by virtue of any law other than this Act.
 Any person aggrieved by any decision or order of the designated Court may file an
appeal to the High Court within sixty days from the date of communication of the
decision or order of the said court to him on any question of fact or law arising out of
such orders.

1) The salient features of the Act are as under:—
(i) ma ers rela ng to establishment of Special Economic Zone and for se ng up of units
therein, including requirements, obliga ons and en tlements;
(ii) ma ers rela ng to requirements for se ng up of off-shore banking units and units in
Interna onal Financial Service Center in Special Economic Zone, including fiscal
regime governing the opera on of such units;
(iii) the fiscal regime for developers of Special Economic Zones and units set up therein;
(iv) single window clearance mechanism at the Zone level;
(v) establishment of an Authority for each Special Economic Zone set up by the Central
Government to impart greater administra ve autonomy; and
(vi) designa on of special courts and single enforcement agency to ensure speedy trial
andinves ga on of no fied offences commi ed in Special Economic Zones.

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Guidelines for notifying Special Economic Zone

Sec on 5 s pulates broader guidelines to be considered by the Central Government, while
no fying any area as a Special Economic Zone or an area to be included in the SEZ and in
discharging its func ons under the Act. These include:
(a) genera on of addi onal economic ac vity;

(b) promo on of exports of goods and services;
(c) promo on of investment from domes c and foreign sources;
(d) crea on of employment opportuni es;
(e) development of infrastructure facili es; and
(f) maintenance of sovereignty and integrity of India, the security of the State and
friendlyrela ons with foreign States
The processing and non-processing areas
2) Duties, powers and functions of Board of Approval

The powers and func ons of the Board, inter alia, include:
(a) gran ng of approval or rejec ng proposal or modifying such proposals for

establishment of the Special Economic Zones;
(b) granting approval of authorised opera ons to be carried out in the Special Economic
Zonesby the Developer;
(c) gran ng of approval to the Developers or Units (other than the Developers or the Units
which are exempt from obtaining approval under any law or by the Central
Government) for foreign collabora ons and foreign direct investments (including
investments by a person resident outside India) in the Special Economic Zone for its
development,opera on and maintenance;
(d) gran ng of approval or rejec ng proposal for providing infrastructure facili es in a
SpecialEconomic Zone or modifying such proposals;
(e) gran ng, a licence to an industrial undertaking referred to in sec on 3(d) of IDR Act, if

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such undertaking is established, as a whole or part thereof, or proposed to be

established, ina Special Economic Zone;
(f) suspension of the le er of approval granted to a Developer and appointment of an
Administrator under Sec on 10(1) of the Act;
(g) disposing of appeals preferred under Sec on 15(4) and Sec on 16(4) of the Act;
(h) performing such other func ons as may be assigned to it by the Central Government.
Suspension of letter of approval and transfer of special economic zone in certain cases
The func ons of the Development Commissioner include :
(a) guide the entrepreneurs for se ng up of Units in the Special Economic Zone;
(b) ensure and take suitable steps for effec ve promo on of exports from the Special
Economic Zone;
(c) ensure proper coordina on with the Central Government or State Government
Departments concerned or agencies with respect to, or for above purposes;
(d) monitor the performance of the Developer and the Units in SEZ;
(e) discharge such other func ons as may be assigned to him by the Central
Governmentunder this Act or any other law for the me being in force; and
(f) any other func ons as may be delegated to him by the Board of approval.

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Chapter: 11 COMPETITION ACT 2002
PAST PAPER CONCEPTS

 Conditions conductive to centralization
 SECTION 2(c) Cartel
 What is competition and what ways competition kill the competition
 ARTICLES 38 AND 39: Evolution and development of Indian competition
 There is close relationship between competition and economic efficiency
 SECTION 2(f): Consumer
 Competition act and MRTP Act
 SECTION 2(1): Person
 SECTION 19(3): Factors which competition commission of India takes into
consideration to determine that the agreement has an appreciable adverse effect
 SECTION 3: Anti-competitive agreement
 SECTION 3(3): Bid rigging and ways in which bid rigging may occur
 Bid rigging, tie-in agreement, exclusive supply agreement and refusal to deal
 SECTION 4: Competition act Does not prohibit dominance but the abuse of dominant
position
 Abuse of dominance
 Dominant position
 Purpose of determining whether an enterprise enjoys dominant position or not
 SECTION 6: Regulation of combination
 Combination
 SECTION 7: Establishment of commission
 SECTION 8: Composition of commission
 SECTION 9: Selection of chairperson and members
 SECTION 10: Term of office of chairperson and member
 SECTION 7: Duties, powers and functions of competition commission of India
 SECTION 19(4): Commission while inquiring whether an enterprise enjoys a
dominant position or not
 Order can be passed by CCI under SECTION 27
 Who can appear before CCI
 Jrisdiction of the CCI extends to acts/agreement taking place outside India which
affects competition in India
 Process of selection of chairperson and member of CCI & what circumstance they
may remove by the CG
 SECTION 41: Duties and powers of director general
 SECTION 49Competition advocacy
 Purpose of competition policy of India

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 SECTION 39: CCI imposing monetary penalty be executed

 SECTION 42: Penalty prescribed by competition act for contravention of the
competition commission
 Competition appellate tribunal [SECTION 53A] Appellate tribunal
 [SECTION 411 OF COMPANIES ACT] Qualifications
 [SECTION 416 COMPANIES ACT] Resignation
 [53S] Right to legal representative
 SECTION 44: Consequences of making false statement by a person being party to
combination.

• Competition Act, 2002 seeks to provide, keeping in view the economic development
of the country, for the establishment of Competition Commission to prevent practices
having adverse effect on competition, to promote and sustain competition in markets, to
protect the interests of consumers and to ensure freedom of trade carried on by other
participants in markets in India and for matters connected therewith or incidental thereto
besides repeal of MRTP Act and the dissolution of the MRTP Commission.
• No enterprise or association of enterprises or person or association of persons shall
enter into any agreement in respect of production, supply, distribution, storage, acquisition
or control of goods or provision of services, which causes or is likely to cause an
appreciable adverse effect on competition.
• Competition Act expressly prohibits any enterprise or group from abusing its dominant
position. Dominant Position meaning thereby a position of strength, enjoyed by an
enterprise or group, in the relevant market, in India, which enables it to operate
independently of competitive forces prevailing in the relevant market; or affect its
competitors or consumers or the relevant market in its favour.
• Competition Act prohibits any person or enterprise from entering into a combination
which causes or is likely to cause an appreciable adverse effect on competition within
the relevant market in India and if such a combination is formed it shall be void.
• While formulating a policy on the competition the Central/State Government may
make a reference to the Commission for its opinion on possible effect of such a policy
on the competition.
• Competition Appellate Tribunal to hear and dispose of appeals against the direction
issued or decision made or orders passed by the Commission under the Act, and to
adjudicate on claim of compensation.
• The Central Government or any State Government or the Commission or any statutory
authority or any local authority or any enterprise or any person aggrieved by any decision
or order of the Appellate Tribunal may file an appeal to the Supreme Court.

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Some of the conditions that are conducive to cartelization are:

high concentration - few
competitors high entry and
exit barriers
homogeneity of the products (similar

products) similar production costs
excess capacity
high dependence of the consumers on
the product history of collusion
WHAT IS AN ANTI-COMPETITIVE AGREEMENT?

An anti-competitive agreement is an agreement having appreciable adverse effect on
competition. Anti- competitive agreements include, but are not limited to:- agreement to
limit production and/or supply; agreement to allocate markets; agreement to fix price; bid
rigging or collusive bidding; conditional purchase/ sale (tie-in arrangement); exclusive
supply / distribution arrangement; resale price maintenance; and refusal to deal.
WHAT CONSTITUTES ABUSE OF DOMINANCE?

Dominance refers to a position of strength which enables an enterprise to operate
independently of competitive forces or to affect its competitors or consumers or the market
in its favour. Abuse of dominant position impedes fair competition between firms, exploits
consumers and makes it difficult for the other players to compete with the dominant
undertaking on merit. Abuse of dominant position includes:
• imposing unfair conditions or price,

• predatory pricing,
• limiting production/market or technical development ,
• creating barriers to entry,
• applying dissimilar conditions to similar transactions,
• denying market access, and
• using dominant position in one market to gain advantages in another market.
WHAT IS COMBINATION?
Broadly, combination under the Act means acquisition of control, shares, voting rights or
assets, acquisition of control by a person over an enterprise where such person has direct or
indirect control over another enterprise engaged in competing businesses, and mergers and
amalgamations between or amongst enterprises when the combining parties exceed the
thresholds set in the Act. The thresholds are specified in the Act in terms of assets or
turnover in India and outside India. Entering into a combination which causes or is likely to

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cause an appreciable adverse effect on competition within the relevant market in India is
prohibited and such combination shall be void.
Section 19(3) provides that while determining whether an agreement has appreciable
adverse effect on competition, the Commission shall give due regard to all or any of the
following factors, namely–
(a) creation of barriers to new entrants in the market;

(b) driving existing competitors out of the market;
(c) foreclosure of competition by hindering entry into the market;
(d) accrual of benefits to consumers;
(e) improvements in production or distribution of goods or provision of services;
(f) promotion of technical, scientific and economic development by means of
production or distribution of goods or provision of services.
Duties, Powers and Functions of Commission

As per Section 18 of the Act, duties of the CCI are:–
For the purpose of determining whether an enterprise enjoys dominant position or not
under Section 4, the Commission shall have due regard to all or any of the following
factors, namely–
(a) market share of the enterprise;

(b) size and resources of the enterprise;
(c) size and importance of the competitors;
(d) economic power of the enterprise including commercial advantages over competitors;
(e) vertical integration of the enterprises or sale or service network of such enterprises;
(f) dependence of consumers on the enterprise;
(g) monopoly or dominant position whether acquired as a result of any statute or by virtue

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of being a Government company or a public sector undertaking or otherwise;

(h) entry barriers including barriers such as regulatory barriers, financial risk, high capital
cost of entry, marketing entry barriers, technical entry barriers, economies of scale,
high cost of substitutable goods or service for consumers;
(i) countervailing buying power;
(j) market structure and size of market;
(k) social obligations and social costs;
(l) relative advantage, by way of the contribution to the economic development, by the
enterprise enjoying a dominant position having or likely to have an appreciable
adverse effect on competition;
(m) any other factor which the Commission may consider relevant for the inquiry.
The Commission shall have due regard to all or any of the factors for the purposes of
determining whether the combination would have the effect of or is likely to have an
appreciable adverse effect on competition in the relevant market, namely –
(a) actual and potential level of competition through imports in the market;
(b) extent of barriers to entry into the market;
(c) level of combination in the market;
(d) degree of countervailing power in the market;
(e) likelihood that the combination would result in the parties to the combination being able
to significantly and sustainably increase prices or profit margins;
(f) extent of effective competition likely to sustain in a market;
(g) extent to which substitutes are available or are likely to be available in the market;
(h) market share, in the relevant market, of the persons or enterprise in a combination,
individually and as a combination;
(i) likelihood that the combination would result in the removal of a vigorous and
effective competitor or competitors in the market;
(j) nature and extent of vertical integration in the market;
(k) possibility of a failing business;
(l) nature and extent of innovation;
(m) relative advantage, by way of the contribution to the economic development, by
any combination having or likely to have appreciable adverse effect on competition;
(n) whether the benefits of the combination outweigh the adverse impact of the combination,
if any.

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Chapter: 12 CONSUMER PROTECTION ACT 21019
PAST PAPER CONCEPTS

 SECTION 2(9): Basic rights of consumer
 Commercial purpose
 SECTION 2(7): Consumer
 SECTION 2(11): Deficiency in service
 SECTION 2(10): Defects in goods
 SECTION 2(5): Complainant
 SECTION 2(41): Restrictive trade practices
 SECTION 34: Pecuniary and territorial jurisdiction of the district forum
 SECTION 39: Nature and scope of remedies
 Composition and jurisdiction of national commission
 Process of filling an appeal
 Contract of service and contract for service

 Consumer Protection Act, 2019 provides for protection of the interests of
consumers and for the said purpose, to establish authorities for timely and effective
administration and settlement of consumers’ disputes and for matters connected
 Consumer means any person who (i) buys any goods for a consideration which has
been paid or promised or partly paid and partly promised, or under any system of
deferred payment and includes any user of such goods other than the person who
buys such goods for consideration paid or promised or partly paid or partly
promised, or under any system of deferred payment, when such use is made with
the approval of such person, but does not include a person who obtains such goods
for resale or for any commercial purpose; or (ii) hires or avails of any service for a
consideration which has been paid or promised or partly paid and partly promised,
or under any system of deferred payment and includes any beneficiary of such
service other than the person who hires or avails of the services for consideration
paid or promised, or partly paid and partly promised, or under any system of
deferred payment, when such services are availed of with the approval of the first
mentioned person, but does not include a person who avails of such service for any
commercial purpose.
 The expression “commercial purpose” does not include use by a person of goods
bought and used by him exclusively for the purpose of earning his livelihood, by
means of self-employment and the expressions “buys any goods” and “hires or
avails any services” includes offline or online transactions through electronic
means or by teleshopping or direct selling or multi-level marketing.
 Direct selling means marketing, distribution and sale of goods or provision of

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services through a network of sellers, other than through a permanent retail

location.
 E-Commerce means buying or selling of goods or services including digital
products over digital or electronic network.
 Electronic service provider means a person who provides technologies or processes to
enable a product seller to engage in advertising or selling goods or services to a
consumer and includes any online market place or online auction sites.
 Endorsement in relation to an advertisement, means any message, verbal statement,
demonstration; or depiction of the name, signature, likeness or other identifiable
personal characteristics of an individual; or depiction of the name or seal of any
institution or organisation, which makes the consumer to believe that it reflects the
opinion, finding or experience of the person making such endorsement.
 Express warranty means any material statement, affirmation of fact, promise or
description relating to a product or service warranting that it conforms to such
material statement, affirmation, promise or description and includes any sample or
model of a product warranting that the whole of such product conforms to such
sample or model.
 Product liability means the responsibility of a product manufacturer or product seller,
of any product or service, to compensate for any harm caused to a consumer by such
defective product manufactured or sold or by deficiency in services relating thereto.
 Section 10 empowers the Central Government to establish a Central Consumer
Protection Authority to be known as the Central Authority to regulate matters relating
to violation of rights of consumers, unfair trade practices and false or misleading
advertisements which are prejudicial to the interests of public and consumers and to
promote, protect and enforce the rights of consumers as a class.
 District Commission shall have jurisdiction to entertain complaints where the value of
the goods or services paid as consideration does not exceed one crore rupees.
 State Commission shall have jurisdiction to entertain complaints where the value of
the goods or services paid as consideration, exceeds rupees one crore, but does not
exceed rupees ten crore.
 National Commission shall have jurisdiction to entertain Complaints where the value
of the goods or services paid as consideration exceeds rupees ten crore.
 Product liability action may be brought by a complainant against a product
manufacturer or a product service provider or a product seller, as the case may be, for
any harm caused to him on account of a defective product.

Who is a not a consumer?
 A person who obtains;

 goods free of charge
 who avails services free of charge

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 who obtains goods for resale or for any commercial purposes

 who avails services for any commercial purposes
 who avails services under contract of service
 As per the provisions of the Act, commercial purpose does not include use by a
person of goods bought and used by him exclusively for the purposes of earning
his livelihood by means of self- employment.
While determining the penalty, regard shall be had to the following, namely:–
(a) the population and the area impacted or affected by such offence;
(b) the frequency and duration of such offence;
(c) the vulnerability of the class of persons likely to be adversely affected by such offence;
and
(d) the gross revenue from the sales effected by virtue of such offence.
Vexatious Search
The Director General or any other officer, exercising powers under section 22, who
knows that there are no reasonable grounds for so doing, and yet–
(a) searches, or causes to be searched any premises; or

(b) eizes
any record, register or other document or article, shall, for every such offence, be
punished with imprisonment for a term which may extend to one year, or with fine which
may extend to ten thousand rupees or with both.
Appeal against order of District Commission
There are certain restriction on appeal, unless the person fulfil the following conditions
namely-
No appeal by a person, who is required to pay any amount in terms of an order of the
District Commission, shall be entertained by the State Commission unless the
appellant has deposited fifty per cent. of that amount in the manner as may be
prescribed.
No appeal shall lie from any order passed under sub-section (1) of section 81 by the
District Commission pursuant to a settlement by mediation under section 80.
According to Section 47(4), a complaint shall be instituted in a State Commission within

the limits of whose jurisdiction,–
(a) the opposite party or each of the opposite parties, where there are more than one, at the
time of the institution of the complaint, ordinarily resides or carries on business or has
a branch office or personally works for gain; or
(b) any of the opposite parties, where there are more than one, at the time of the institution
of the complaint, actually and voluntarily resides, or carries on business or has a branch
office or personally works for gain, provided in such case, the permission of the State
Commission is given; or
(c) the cause of action, wholly or in part, arises; or
(d) the complainant resides or personally works for gain.

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MEDIATION
A consumer mediation cell shall consist of such persons as may be prescribed. Every
consumer mediation cell shall maintain–
(a) 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 by regulations.
Duty of Mediator to Disclose Certain Fact
According to the Section 77 of the Act, it shall be the duty of the mediator to disclose–
(a) any personal, professional or financial interest in the outcome of the consumer
dispute;
(b) the circumstances which may give rise to a justifiable doubt as to his independence
or impartiality; and such other facts as may be specified by regulations.

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Chapter: 13 ESSENTIAL COMMODITIES ACT 1995

PAST PAPER CONCEPTS
 Evaluate the efficacy of ECA in controlling the procedure, supply and distribution
of essential commodities in the country
 Tea is food stuff? Does it have ant nutritional value?
 SECTION 2(a) Essential commodities
 Power of the CG to control production supply and distribution
 SECTION 3(4) Who appoint authorised controller? State functions and liabilities
 SECTION 6A (1) Confiscation of essential commodities seized in contravention of
section 3 Seizer and Confiscation
 Explain in brief Seizer and Confiscation
 Mens rea

 Essential Commodities Act, 1955 has been enacted to provide in the interest of the
general public for the
 control of the production, supply and distribution of and trade and
commerce in, certain commodities.
 Section 2A dealing with Essential commodities declaration, etc. defines the
“essential commodity” as to means a commodity specified in the Schedule to the
Act.
 Central Government has been empowered to administer the provisions of the
Act by issuing orders/ directions notified in the official gazette and by
delegating the authority to State Governments and administrators of Union
Territories.
 An essential commodity which has been seized could be confiscated. Therefore,
confiscation is an action posterior to the seizure of the essential commodity. A
commodity that has not been seized cannot be confiscated. Seizure itself does not
imply confiscation.
 Mens rea or guilty mind is an essential ingredient of the offence punishable under the
Act.
 Culpable mental state, which includes intention, motive, knowledge of a fact
and the belief in a fact.
 Where an offence is committed by a company, if it is proved that the offence had
been committed with the consent or connivance of or is attributable to any neglect
on the part of any Director, Manager, Secretary or other officer of the company,
such a person shall be deemed to be guilty of that offence, and is liable to be
proceeded against and punished accordingly.
 The Act expressly provides that no Civil Court can grant any injunction or make
any order for any other relief against the Central or State Government or any
public officer, in respect of any act done, r purporting to be done, by such person
in his official capacity under the Act, or any Order made thereunder, until after
notice of the application for such injunction or other report is given to the
Government or to such officer.

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Schedule to the Act lists out following commodities:
(1) drugs: The explanation clarifies that for the purposes of this Schedule, “drugs” has the
meaning assigned to it in clause (b) of Section 3 of the Drugs and Cosmetics Act,
1940;
(2) fertilizer, whether inorganic, organic or mixed;
(3) foodstuffs, including edible oilseeds and oils;
(4) hank yarn made wholly from cotton;
(5) petroleum and petroleum products;
(6) raw jute and jute textiles;
(7)
(i) seeds of food-crops and seeds of fruits and vegetables;
(ii) seeds of cattle fodder; and
(iii) jute seeds.
IN S. Samuel, MD. Harrisons Malayava v. Union of India, AIR 2004 SC 218, Supreme
Court held that Tea is not foodstuff. Even in a wider sense, foodstuffs will not include tea
as tea either in the form of the leaves or in the form of beverage, does not go into the
preparation of food proper to make it more palatable and digestible.
Tea leaves are not eaten. Tea is a beverage produced by steeping tea leaves or buds of
the tea plants in the boiled water. Such tea is consumed hot or cold for its flavour, taste
and its quality as a stimulant. The stimulating effect is caused by the presence of
caffeine therein. Tea neither nourishes the body nor sustains nor promotes its growth.
It does not have any nutritional value. It does not help formation of enzymes nor does
it enable anabolism. Tea or its beverage does not go into the preparation of any
foodstuff. In common parlance, any one who has taken tea would not say that he has
taken or eaten food. Thus tea is not a food.
Order: “Order” includes a direction issued thereunder [Section 2(c)].
State Government: “State Government”, in relation to a Union territory means the

administrator of such territory [Section 2(d)].
Sugar: “Sugar” means: (i) any form of sugar containing more than 90 per cent of
sucrose, including sugar candy; (ii) Khandsari sugar or bura sugar or crushedsugar, or
any sugar in crystalline or powdered form; or (iii) sugar in process in vacuum pan sugar
factory, or raw sugar [Section 2(e)].
Power to Issue Orders
The Central Government having been vested with power under Section 3(1) can issue order in
the following circumstances providing for regulating or prohibiting the production, supply
and distribution of essential commodities and trade and commerce therein:

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(i) when it is necessary or expedient for maintaining or increasing supplies of any essential
commodity;
(ii) for securing the equitable distribution and availability of essential commodities at fair
price; or
(iii) for securing any essential commodity for the defence of India or the
efficient conduct of military operations.
Explanation.—The expression “value chain participant”, in relation to any agricultural
product, means and includes a set of participants, from production of any agricultural
produce in the field to final consumption, involving processing, packaging, storage,
transport and distribution, where at each stage value is added to the product.
xplanation I provides that an order made under this clause in relation to foodgrains, edible
oilseeds or edible oils may, having regard to the estimated production, In the concerned area, of
such foodgrains, edible oilseeds and edible oils, fix the quantity to be sold by the producers
in such area and may also fix, or provide for the fixation of such quantity on a graded basis,
having regard to the aggregate of the area held by, or under the cultivation of the producers.
Explanation II provides that “production” for the purposes of this clause includes
manufacture of edible oils and sugar with its grammatical variation and cognate
expressions;
Issuance and Service of Order
An order made under Section 3 of the Act shall be issued and served in the manner as
provided under Section 3(5) i.e. in the following manner:
(a) in the case of an order of general nature or affecting a class of persons be notified in the
official gazette; and
(b) in the case of an order directed to a specified individual be served on such
individual (i) by delivering or tendering it to that individual, or (ii) if it cannot be so
delivered or tendered, by affixing it on the outer door or some other conspicuous part of
the premises in which that individual lives, and a written report thereof shall be prepared
and witnessed by two persons living in the neighbourhood.
EFFECT OF THE ORDER
The Calcutta High Court had observed that the ultimate effect of Section 6 is that an order
under Section 3 will override existing laws, only on the ground that these are orders validly
made under Section 3 of the Act (Ramananda Agrawala v. State AIR 1951 Calcutta 120).
As rightly pointed out by the Patna High Court, Section 6 is a saving section which
affords protection to the orders made under Section 3 of the Act as against the onslaught
of any law, merely by reason of inconsistency (Mohammad Anwar Hussi v. State of Bihar,
AIR 1955 Patna 220).
Seizure’
The expression ‘seize’ means to take possession contrary to the wishes of the owner of
the property and that such action is unilateral action of the person seizing. The person

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from whom anything is seized loses, from the moment of seizure, the right or power to
control or regulate the use of that thing. The dictionary meaning of the word ‘seize’
means to lay hold of suddenly or forcible, to take hold of, to reach and grasp, to
clutch’. It also means ‘to take possession of or appropriate in order to subject to the
force or operation of a warrant, order of Court or other legal processes. A reference to
some provisions of the Codes of Criminal Procedure shows that the term seizure had
been used therein in connection with the taking of actual physical possession of
moveable property.
Confiscation’
‘Confiscation’ according to Wharton’s Law Lexicon, is condemnation and adjudication

of property to the public treasury as of goods seized under the Customs Act.
Confiscation, according to Strouds judicial Dictionary, must be an act done in some
way on the part of the Government of the country where it takes place and in some way
beneficial to that Government, though the proceeds may not strictly speaking be
brought into its treasury. In State of Kerala v. Mathai (1961 K.L.T. 169) it was pointed
out that confiscation is not to be considered part of the sentence for an offence but is
only a mode by which Courts can dispose of property which comes before it in criminal
trials.
Prosecution of Public Servants (Section 15A)
If any public servant is accused of any offence alleged to have been committed by him
while acting, or purporting to act, in the discharge of his duties, in pursuance of any order
made under Section 3, no court can take cognizance of such an offence except with the
previous sanction—(a) of the Central Government in the case of a person who is
employed in connection with the affairs of the Union; and (b) of the State Government in
the case of a person who is employed in connection with the affairs of the State.
ens rea (Sections 6A and 7)
In Nathulal v. State of Madhya Pradesh (AIR 1966 S.C. 43) it was held by the Supreme
Court that mens rea or guilty mind is an ingredient of the offence punishable under Section
7 of the Essential Commodities Act, 1955 i.e., an intentional contravention of an order made
under Section 3, is an essential ingredient of an offence under Section7. In other words, if
the dealer did believe bona fide that he could store the foodgrains for instance, without
infringing any order under Section 3, there could be no contravention under Section 7.
It was observed by the Supreme Court in this case that mens rea is an essential ingredient
of any criminal offence. Mens rea by necessary implication may be excluded from a statute
only where it is absolutely clear that the implementation of the object of the Statute would
otherwise be defeated. The nature of mens rea that would be implied in a Statute creating an
offence depends on the object of the Act and the provisions thereof.
In Hariprasad Rao v. State (AIR 1951 SC 264), it was observed that unless a Statute
either clearly or by necessary implication rules out mens rea as a constituent part of a
crime, an accused cannot be found guilty of an offence against the criminal law unless he

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has got a guilty mind. Therefore, mens rea is an essential ingredient of an offence under
Section 7 of the Act.
Culpable Mental State
Section 10-C provides for a presumption of culpable mental state, which includes
intention, motive, knowledge of a fact and the belief in a fact. It is now provided thati n
any prosecution for an offence under the Act which requires a culpable mental state on the
part of the accused, the Court shall presume the existence of mental state. Of course, it is
open to the accused to prove that he had no such mental state with respect of the act
committed by him.
GRANT OF INJUNCTION BY CIVIL COURTS (SECTION 12B)

It is expressly provided by Section 12B that no Civil Court can grant any injunction or
make any order for any other relief against the Central or State Government or any
public officer, in respect of any act done, or purporting to be done, by such person in
his official capacity under the Act, or any Order made thereunder, until after notice of
the application for such injunction or other report is given to the Government or to such
officer.

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Chapter: 14 LEGAL METROLOGY ACT 2009
PAST PAPER CONCEPTS

 International Organisation of Legal Metrology certificate system for measuring
instrument
 Legal metrology
 Features of legal metrology act
 Pre-packaged commodity
 Declaration required to be made by the manufacturer on pre-packaged commodities
and refer penalties

 Consumer Protection Act, 2019 provides for protection of the interests of
consumers and for the said purpose, to establish authorities for timely and effective
administration and settlement of consumers’ disputes and for matters connected
 Consumer means any person who (i) buys any goods for a consideration which has
been paid or promised or partly paid and partly promised, or under any system of
deferred payment and includes any user of such goods other than the person who
buys such goods for consideration paid or promised or partly paid or partly
promised, or under any system of deferred payment, when such use is made with
the approval of such person, but does not include a person who obtains such goods
for resale or for any commercial purpose; or (ii) hires or avails of any service for a
consideration which has been paid or promised or partly paid and partly promised,
or under any system of deferred payment and includes any beneficiary of such
service other than the person who hires or avails of the services for consideration
paid or promised, or partly paid and partly promised, or under any system of
deferred payment, when such services are availed of with the approval of the first
mentioned person, but does not include a person who avails of such service for any
commercial purpose.
 The expression “commercial purpose” does not include use by a person of goods
bought and used by him exclusively for the purpose of earning his livelihood, by
means of self-employment and the expressions “buys any goods” and “hires or
avails any services” includes offline or online transactions through electronic means
or by teleshopping or direct selling or multi-level marketing.
 Direct selling means marketing, distribution and sale of goods or provision of
services through a network of sellers, other than through a permanent retail
location.
 E-Commerce means buying or selling of goods or services including digital
products over digital or electronic network.
 Electronic service provider means a person who provides technologies or processes
to enable a product seller to engage in advertising or selling goods or services to a
consumer and includes any online market place or online auction sites.
 Endorsement in relation to an advertisement, means any message, verbal statement,
demonstration; or depiction of the name, signature, likeness or other identifiable

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personal characteristics of an individual; or depiction of the name or seal of any

institution or organisation, which makes the consumer to believe that it reflects the
opinion, finding or experience of the person making such endorsement.
 Express warranty means any material statement, affirmation of fact, promise or
description relating to a product or service warranting that it conforms to such
material statement, affirmation, promise or description and includes any sample or
model of a product warranting that the whole of such product conforms to such
sample or model.
 Product liability means the responsibility of a product manufacturer or product
seller, of any product or service, to compensate for any harm caused to a consumer
by such defective product manufactured or sold or by deficiency in services relating
thereto.
 Section 10 empowers the Central Government to establish a Central Consumer
Protection Authority to be known as the Central Authority to regulate matters
relating to violation of rights of consumers, unfair trade practices and false or
misleading advertisements which are prejudicial to the interests of public and
consumers and to promote, protect and enforce the rights of consumers as a class.
 District Commission shall have jurisdiction to entertain complaints where the value
of the goods or services paid as consideration does not exceed one crore rupees.
 State Commission shall have jurisdiction to entertain complaints where the value of
the goods or services paid as consideration, exceeds rupees one crore, but does not
exceed rupees ten crore.
 National Commission shall have jurisdiction to entertain Complaints where the
value of the goods or services paid as consideration exceeds rupees ten crore.
 Product liability action may be brought by a complainant against a product
manufacturer or a product service provider or a product seller, as the case may be,
for any harm caused to him on account of a defective product.

OIML
According to OIML, Legal Metrology is the entirety of the legislative, administrative and
technical procedures established by, or by reference to public authorities, and
implemented on their behalf in order to specify and to ensure, in a regulatory or
contractual manner, the appropriate quality and credibility of measurements related to
official controls, trade, health, safety and the environment.
Appointment and Power of Director, Controller and legal metrology officers

The Director and every legal metrology officer, appointed, shall exercise such powers and
discharge such functions in respect of such local limits as the Central Government may, by
notification, specify. Every legal metrology officer shall exercise powers and discharge
duties under the general superintendence, direction and control of the Director.
Section 14 of the Act, provides that the State Government may, by notification, appoint a
Controller of legal metrology, Additional Controller, Joint Controller, Deputy Controller,
Assistant Controller, Inspector and other employees for the State for exercising the powers

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and discharging the duties conferred or imposed on them by or under this Act in relation to
intra State trade and commerce.
Declarations on pre-packaged commodities
Section 18 states that no person shall manufacture, pack, sell, import, distribute, deliver,
offer, expose or possess for sale any pre-packaged commodity unless such package is in
such standard quantities or number and bears thereon such declarations and particulars in
such manner as may be prescribed. Any advertisement mentioning the retail sale price of a
pre- packaged commodity shall contain a declaration as to the net quantity or number of
the commodity contained in the package in such form and manner as may be prescribed.
APPROVAL OF MODAL
It may be noted that the prescribed authority may, if he is satisfied that the model of any
weight or measure which has been approved in a country outside India conforms to the
standards established by or under this Act, approve such model without any test or after
such test as he may deem fit.
A person is said to “counterfeit” who causes one thing to resemble another thing, intending
by means of that resemblance to practice deception, or knowing it to be likely that
deception will thereby be practiced.

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Chapter: 15 TRANSFER OF PROPERTY ACT 1882
PAST PAPER CONCEPTS

 Vested interest & contingent interest
 Movable property & immovable property
 Meaning and characteristic of immovable property
 Spes successionis
 SECTION 6 Enumerate the property which cannot be transferred
 Consolidations restraining alienation & condition restraining enjoyment
 SECTION 13 Property may be transferred in favour of unborn person
 SECTION 10 Exceptions to the absolute restraint on transfer of property is void
 SECTION 35 Doctrine of election
 Doctrine of part-performance embodied in SECTION 53A
 SECTION 17 Accumulation of income
 SECTION 52 Rule of lis pendens
 Lease & License
 Sale & Contract for sale
 Sale & Exchange
 SECTION 127 onerous gifts
 SECTION 123 Gift of immovable property is accepted but not registered, does it
amount to a valid gift
 Actionable claim & mere right to sue
 Mortgage & charge
 SECTION 81 Marshalling
 Right of redemption
 English mortgage & mortgage by conditional
 Usufructuary mortgage
 Crystallization of floating charge
 Puisne mortgage

• The law relating to transfer of property is governed by the Transfer of Property Act,
1882. ‘Transfer of Property’ means an act by which a living person conveys property, in
present or future, to one or more other living persons, or to himself, and one or more other
living persons. ‘living person’ includes a company or association or body of individuals,
whether incorporated or not.
• Every person who is competent to contract and entitled to transferable property, or
authorized to dispose of property is competent to transfer such property. Property can be
transferred either orally or by writing. Moveable property can be transferred by delivery
of possession or by registration. In the case of tangible immoveable property of the value
of one hundred rupees and upwards, or in the case of a reversion or other intangible thing,
transfer can be made only by a registered instrument. In the case of tangible immoveable
property of a value less than one hundred rupees, such transfer may be made either by a

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registered instrument or by delivery of the property.

• When property is transferred, the transferee should not be restrained absolutely from
alienating the property. One may give property to another subject to a condition, but the
condition should not be one which absolutely prevents the transferee from alienating the
property. A transfer may also be made subject to a contingency which may or may not
occur. This is known as condition subsequent. Condition subsequent is one which
destroys or divests the rights upon the happening or non-happening of an event.
• Section 35 of the Transfer of Property Act deals with what is called doctrine of
election. Election may be defined as “the choosing between two rights where there is a
clear intention that both were not intended to be enjoyed”. The foundation of doctrine of
election is that a person taking the benefit of an instrument must also bear the burden,
and he must not take under and against the same instrument.
• Where, with the consent, express of implied, of the persons interested in immoveable
property, a person is the ostensible owner of such property and transfers the same for
consideration, the transfer shall not be voidable on the ground that the transferor was not
authorized to make it, provided that the transferee, after taking reasonable care to
ascertain that the transferor had power to make the transfer, has acted in good faith. This is
called doctrine of Holding Out.
• Doctrine of Feeding the Grant by Estoppel means where, a person fraudulently or
erroneously represents that he is authorized to transfer certain immoveable property and
professes to transfer such property for consideration, such transfer shall, at the option of
the transferee, operate on any interest which the transferor may acquire in such property
at any time during which the contract of transfer subsists.
• Where a person transfers his property so that his creditors shall not have anything out
of the property, the transfer is called a fraudulent transfer. A debtor in order to defeat or
delay the rights of a creditor, may transfer his property to some person, who may be his
relative or a friend. The law does not allow this.
• The Act does not allow accumulation of income from the land for an unlimited period
without the income-being enjoyed by owner of the property. The law allows accumulation
of income for a certain period only. The period for which such accumulation is valid is:
(a) the life of the transferor, or (b) eighteen years from the date of transfer. Any direction
to accumulate the income beyond the period mentioned above is void. However, this is
subject to certain exceptions.
• Lis pendens means a pending suit, action, petition or the like. Section 52 of the T.P.
Act incorporates the doctrine of Lis pendens. It states that during the pendency of a
suit in a court of law, property which is subject to a litigation cannot be transferred.
• The Act expressly provides for special types of transfers such as sale, exchange, gift,
mortgage and lease. In a sale, exchange and gift, there is a transfer of the ownership of
property but mortgage is a transfer of an interest in specific immovable property and
lease is a transfer of the right to enjoy immoveable property.
• Actionable claims are claims, to unsecured debts. If a debt is secured by the mortgage
of immoveable property it is not an actionable claim, because the section clearly

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excludes such a debt.

• Charge under the Act has been defined as “where immoveable property of one person is
by the act of parties or operation of law made security for the payment of money to
another, and the transaction does not amount to a mortgage, the latter person is said to
have a charge on the property”.
• As is evident from the above definition, a charge comes into existence either by the act
of parties or by operation of law. A charge may be floating as well as fixed. A fixed
charge is a charge on specific property but a floating charge is an equitable charge on the
assets for time being of a going concern. It is peculiar to companies which are able to
borrow money without any interference with their assets so long as they are going
concerns.

Distinction between a vested and a contingent interest: The following are the principal
points of distinction between a vested and a contingent interest:
1. When an interest is vested the transfer is complete. It creates an immediate proprietory

interest in the property though the enjoyment may be postponed to a future date. A
contingent interest on the other hand is dependant upon the fulfilment of some
conditions which may or may not happen. In other words, in case of vested interest,
the owner’s title is already prefect; in case of a contingent interest, the title is as yet
imperfect but may become perfect on the fulfilment of a stipulated condition.
2. A vested interest takes effect from the date of transfer. A contingent interest in order to
become vested is conditioned by a contingency which may not occur.
3. A vested interest cannot be defeated by the death of the transferee before he obtains
possession. A contingent interest may fail in case of the death of transferee before the
fulfilment of condition.
4. Since vested interest is not circumscribed by any limitation which derogates from the
completeness of the grant, it logically follows that a vested interest is transferable as well
as heritable. If, therefore, a transferee of the vested interest dies before actual enjoyment, it
will devolve on his legal heirs. A contingent interest, on the other hand, cannot be inherited
though it may be transferred coupled with limitation regarding fulfilment of a condition.
Distinction between moveable and immoveable property
The distinction between moveable and immoveable property was explained in the case of
Sukry Kurdepa v. Goondakull, (1872) 6 Mad. H.C. 71, by Holloway J. as moveability
may be defined to be a capacity in a thing of suffering alteration. Immoveablity for such
alteration e.g., a piece of land in all circumstances is immoveable. If a thing cannot change
its place without injury to the quality it is immoveable. Certain things e.g. trees attached to
the ground are so long as they are so attached, immoveable when the severance has been
effected they become moveable.

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THE FOLLOEING HAVE BEEN RECOGNISED AS IMMOVEABLE PROPERTY
RULES RELATING TO TRANSFER OF PROPERTY (WHETHER MOVEABLE

OR IMMOVEABLE)
The first point to note is that transfer inter vivos (i.e., between living persons) alone is
contemplated by the Act. A transfer by means of a will is not a transfer according to the
Act, because it is not a transfer between two living persons. Section 5 also says that the
transfer may be “in present or in future”. The words in present or in future qualify the
words ‘conveys’, and not the word ‘property’. A transfer of property not in existence
operates as a contract to be performed in future which may be specially enforced as soon
as the property comes into existence (Jugalkishore v. Ram Cotton Company, (1955) I
SCR 1369).
FORMALITIES OF TRANSFER
The tangible property means a property which can be touched physically and hence, capable
of physical dealing.
The intangible property means something in abstract, either capable of being touched or
perceived and yet standing in relation to a certain thing.
‘Reversion’ means the bundle of rights remaining with the lessor after the execution
of a lease of a certain immoveable property.
ATTESTATION
Attestation is valid and complete when two witnesses sign the instrument. According to the
definition given in the Transfer of Property Act (Section 3), the following essentials are
required for a valid attestation:
(a) There must be at least two or more witnesses;

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(b) Each witness must see (i) the executant’s sign or affix his mark to the instrument, or (ii)
some other person sign the instrument in the presence and by the direction of the
executant, or (iii) receive from the executant a personal acknowledgement of his
signature or mark or of the signature of such other person; and
(c) Each witness must sign the instrument, (i.e. document), in the presence of the executant.
The following conditions are necessary for the application of Section 41:
The transferor is the ostensible owner He is so by the consent express or implied, of the real
owner. The transfer is for consideration The transferee has acted in good faith taking
reasonable care to ascertain that the transferor had power to transfer.
ESSENTIALS: In order to invoke this section, the transferee must prove that:
The rule did not exist on the statute book before 1929. Section 53A, was inserted by an
amendment to the Act in 1929. Followings are the essential conditions for the operation
of the doctrine of part-performance according to Section 53A.
1. There must be a contract to transfer immoveable property.

2. It must be for consideration.
3. The contract should be in writing and signed by the transferor himself or on his behalf.
4. The terms necessary to constitute the transfer must be ascertainable with reasonable
certainty from the contract itself.
5. The transferee should have taken the possession of the property in part performance of the
contract. In case he is already in possession, he must have continued in possession in
part performance of the contract and must have done something in furtherance of the
contract.

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6. The transferee must have fulfilled or be ready to fulfill his part of the obligation under the
contract.
ESSENTIAL
2. Exchange
Sections 118 to 121 of the Transfer of Property Act, 1882 deal with “Exchanges”.
When two persons mutually transfer the ownership of one thing for the ownership of
another, neither thing or both things being money only, the transaction is called an
“exchange”.
Essentials
(i) The person making the exchange must be competent to contract.
(ii) There must be mutual consent.
(iii) There is a mutual transfer of ownership though things and interests may not be identical.
(iv) Neither party must have paid money only.
This Section applies to both moveable and immoveable property.
3. Gift Essentials
1. There must be a transfer of ownership.
2. The subject matter of gift must be a certain existing moveable or immoveable property.
3. The transfer must be made voluntarily.
4. It must be done without consideration.
5. There must be acceptance by or on behalf of the donee, and such acceptance must be
made during the lifetime of the donor and while he is capable of giving.

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4. Leases
(i) Meaning and nature of lease: According to Section 105, a “lease” of immoveable
property is a transfer of a right to enjoy property. Since it is a transfer to enjoy and use the
property, possession is always given to the transferee. The lease of immoveable property
must be made for a certain period. For example, you may give a lease of property for a
definite number of years, or for life, or even permanently.
Essentials
The essentials of a lease are:
(1) It is a transfer of a right to enjoy immoveable property;

(2) Such transfer is for a certain time or perpetuity;
(3) It is made for consideration which is either premium or rent or both;
(4) The transfer must be accepted by the transferee.
6. Mortgages
Definition and nature of mortgage:
According to Section 58 of the Transfer of Property Act, a “mortgage” is the transfer of an

interest in specific immoveable property for the purpose of securing the payment of money
advanced or to be advanced by way of loan, an existing or future debt or the performance
of an engagement which may give rise to pecuniary liability.
The transferor is called a mortgagor, the transferee a mortgagee. The principal money
and interest the payment of which is secured for the time being are called the mortgage
money and the instrument by which the transfer is effected is called a mortgage deed.
Usufructuary mortgage
Thus, a usufructuary mortgage has the following characteristics:
 Possession of property must be delivered to the mortgagee;

 There is no personal liability on the part of the mortgagor to pay;
 The mortgagee is entitled to rents and profits in lieu of interest or principal or both;
and
 The mortgagee however is not entitled to foreclose the mortgagee or to sue for sale
English mortgage
The essential features of an English mortgage are as under:
 The mortgagor binds himself to repay the mortgage money on a certain day. In
other words, there should be a personal undertaking to pay.
 The mortgaged property is absolutely transferred to the mortgagee.
 Such absolute transfer is subject to a proviso that the mortgagee will
reconvey the property to the mortgagor upon payment by him of the
mortgage money on the fixed day.
Charges
A floating charge has the following characteristics:

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1. It is a charge on class of assets both present and future.

2. The class of assets charged is one which in the ordinary course of business would be
changing from time to time.
3. It is contemplated by the charge that until some future step is taken by those who are
interested in the charge the company may carry on its business in the ordinary way, i.e., it
may use its assets charged in the ordinary course of its business. (Per Roman L.J. in
Reyork Shive Wool Combers Associated Limited, (1903) 2 Ch.
284) A floating charge is created by debentures on the company’s undertaking or its
estate, property and effects. It is not necessary that the charge should be on all company’s
assets. Thus a mortgage of a cinema and of the chattels used in the cinema premises was
held to be a floating charge as to the chattles (National Provisional Bank of England
Limited v. Charteb Electric Theatres Limited, (1916) Ch. 132). Similarly, a floating
charge was created by a mortgage of book and other debts which shall become due during
the continuance of this security (Reyork Shive Wool Combers Association, Supra).

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Chapter: 16 REAL ESTATE (REGULATION & DEVELOPMENT)

ACT
PAST PAPER CONCEPTS

 Appropriate Government under RERA
 Carpet Area vs Common Area
 Exempted projects from registration.
 Objectives and features of RERA
 Documents to be attached by promoter while registration (Registration process)
 Revocation of Registration
 Functions & duties of promoter
 Tribunal and its power
 Punishments
 Rights of Real Estate Allottees under RERA
• Parliament enacted the Real Estate (Regula on and Development) Act, 2016 which aims at
protec ng the rights and interests of consumers and promo on of uniformity and
standardiza on ofbusiness prac ces and transac ons in the real estate sector. It a empts to
balance the interests of consumers and promoters by imposing certain responsibili es on both.
It seeks to establish symmetry of informa on between the promoter and purchaser,
transparency of contractual condi ons, set minimum standards of accountability and a fast-track
dispute resolu on mechanism.
• Carpet area means the net usable floor area of an apartment, excluding the area covered by
theexternal walls, areas under services sha s, exclusive balcony or verandah area and exclusive
open terrace area, but includes the area covered by the internal par on walls of the
apartment.
• Real estate project means the development of a building or a building consis ng of

apartments, orconver ng an exis ng building or a part thereof into apartments, or the
development of land into plots or apartment, as the case may be, for the purpose of selling all or
some of the said apartments or plots or building, as the case may be, and includes the common
areas, the development works, allimprovements and structures thereon, and all easement, rights
and appurtenances belonging thereto.
• A promoter shall not adver se, market, book, sell or offer for sale, or invite persons to
purchase inany manner any plot, apartment or building, as the case may be, in any real estate
project or part of it, in any planning area, without registering the real estate project with the Real
Estate Regulatory Authority established.
• The appropriate Government shall establish an Authority to be known as the Real Estate
Regulatory Authority to exercise the powers conferred on it and to perform the func ons

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assignedto it under the Act.
•The Central Advisory Council is required to advise the Central Government on ma ers
rela ng toimplementa on of the Act, ques ons of policy, protec on of consumer interest,
foster growth anddevelopment of the real estate sector, and other ma ers as may be assigned
to it by the Central Government.
• Real Estate Appellate Tribunal (REAT) is to be formed by appropriate government to ensure

fasterresolu on of disputes. Par es aggrieved by the RERA order can appeal before REAT and
REAT has toadjudicate such cases within 60 days. Civil Courts have been prevented from
exercising jurisdic on on such ma ers.
• As per Sec on 56 of the Act, a Company Secretary holding cer ficate of prac ce can appear
before Appellate Tribunal or a Regulatory Authority or Adjudica ng Officer on behalf of
applicant orappellant as the case may be.
Responsibilities of the Appropriate Government
(a) As per section 84 of the Act the appropriate Government is required to notify Rules
for the implementation of the Act.
(b) As per section 20 of the Act the appropriate Government is required to establish
the Regulatory Authority.
(c) As per section 20 of the Act the appropriate Government is required to appoint
Regulatory Authority.
(d) As per section 43 of the Act the appropriate Government is required to establish the
Appellate Tribunal.
(e) The Chairperson and Members of the Regulatory Authority and the Members of the
Appellate Tribunal are required to be appointed based on recommendations of a
Selection Committee, thus the appropriate Government is required to constitute the
Selection Committee.
(f) As per section 28 and section 51 the appropriate Government is required to appoint
officers and other employees of Regulatory Authority and the Appellate Tribunal.
(g) As per section 41 the Central Government (i.e. the Ministry of HUPA) is required to
establish the Central Advisory Council.
(h) As per section 75 the appropriate Government is required to constitute a ‘Real Estate
Regulatory Fund’.

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Chapter 17: BENAMI TRANSACTION (PROHIBITION) ACT 1988
PAST PAPER CONCEPTS

 Salient features
 SECTION 26(1): Adjudicating authority to furnish documents, evidence
 SECTION 26(2): Serving of notice where benami property is held jointly
 SECTION 26(3): Orders by adjudicating authority
 SECTION 26(4): Procedure to be adopted by adjudicating authority when only
some part of the property is benami property
 SECTION 26(5): Power of adjudicating authority to attach other property even
though no reference has been made by initiating officers
 SECTION 26(6): Power of adjudicating authority to remove a name or add the
name of any person in relation case before him
 SECTION 26(7): Time limit for passing order
 SECTION 26(8): Appearance before adjudicating authority

• The Benami Transactions (Prohibition) Act, 1988 prohibits benami transactions and
consequently prevent circumvention of law through unfair practices. It empowers the
Government to confiscate benami property by following due procedure. It therefore
promotes equity across all citizens. However, those who declare their benami properties
under income declaration scheme will get immunity under the Benami Act.
• The Benami Transactions (Prohibition) Amendment Act, 2016received the assent of
the President on the 10th August, 2016 and came into effect from1st November, 2016.
• Where any person enters into any benami transaction on and after the date of
commencement of the Benami Transactions (Prohibition) Amendment Act, 2016, shall be
punishable in accordance with the provisions contained in Chapter VII.
• Any property, which is subject matter of benami transaction, shall be liable to be
confiscated by the Central Government.
The Salient Features of the Benami Transactions (Prohibition) Act, 1988 are as under:
It defines a benami transaction and benami property and also provides for
exclusions and transactions which shall not be construed benami
It provides the consequences of entering into a prohibited benami transactions
It lays down the procedure for determination and related penal consequences in the

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case of a prohibited benami transaction

It also provides that the powers of civil court shall be available to authorities under the said
Act
Miscellaneous Provisions have been provided for service of notice, protection of action
taken in good faith, etc.
Central Government empowers to make rules for the implementation of the provisions of the
Act
It enables the Central Government in consultation with the Chief Justice of the High Court
to designate one or more Courts of Session as Special Court or Special Courts for the purpose
of the Act
It provides penalty for entering into benami transactions and for furnishing any false
documents in any proceeding under the Act
It provides for transfer of any suit or proceeding in respect of a benami transaction
Ipending in any court (other than High Court) or Tribunal or before any authority to the
Appellate Tribunal
For the removal of doubts, hereby declared that benami transaction shall not include
any transaction involving the allowing of possession of any property to be taken or
retained in part performance of a contract referred to in section 53A of the Transfer of
Property Act, 1882, if, under any law for the time being in force,—
(i) consideration for such property has been provided by the person to whom possession of
property has been allowed but the person who has granted possession thereof
continues to hold ownership of such property;
(ii) stamp duty on such transaction or arrangement has been paid; and
(iii) the contract has been registered.
Sub-section (4) of this section provides that the Initiating Officer, after making such
inquires and calling for such reports or evidence as he deems fit and taking into account all
relevant materials, shall, within a period of ninety days from the date of issue of notice
under sub-section (1), -
(a) where the provisional attachment has been made under sub-section (3), -
(i) pass an order continuing the provisional attachment of the property with the prior
approval of the Approving Authority, till the passing of the order by the
Adjudicating Authority under sub- section (3) of section 26; or (ii) revoke the
provisional attachment of the property with the prior approval of the Approving
Authority;
(b) where provisional attachment has not been made under sub-section (3), -
(i) pass an order provisionally attaching the property with the prior approval of the
Approving Authority, till the passing of the order made by the Adjudicating
Authority under sub-clause
(3) of section 26; or
(ii) decide not to attach the property as specified in the notice, with the prior
approval of the Approving Authority.

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Sub-section (2) of this section provides that any notice referred to above may be addressed--
-
(i) in case of an individual, to such individual ;

(ii) in the case of a firm, to the managing partner or the manager of the firm;
(iii) in the case of a Hindu undivided family, to karta or any member of such family;
(iv) in the case of a company, to the principal officer thereof;
(v) in the case of any other association or body of individuals, to the principal officer
or any member thereof;
(vi) in the case of any other person (not being an individual), to the person who manages
or controls his affairs.
ub-section (2) of this section provides that the Administrator shall, -
(a) by notice in writing, order within seven days of the date of the service of notice any
person, who may be in possession of the benami property, to surrender or deliver
possession thereof to the Administrator or any other person duly authorised in writing
by him in this behalf;
in the event of non-compliance of the order referred to in clause (a), or if in his opinion,
taking over of immediate possession is warranted, for the purpose of forcibly taking over
possession, requisition the service of any police officer to assist him and it shall be the duty
such officer to comply with the requisition.

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Chapter: 18 PREVENTION OF MONEY LAUNDERING ACT 2002
PAST PAPER CONCEPTS

 SECTION 5: Attachment of property involve in money laundering
 SECOND SCHEDULE: Execution of attached
 SECTION 12: Reporting entity to maintain records
 SECTION 13: To furnish information whenever called upon by director
 SECTION 14: If the Bank, financial institute and intermediary supply the
information, no civil proceedings can be taken against them for furnishing
information to authority
 SECTION 15: Procedure and manner of furnishing information by reporting
entities
 SECTION 45: Offence to be cognizable and non-bailable
 KYC guidelines
 Certain powers of the CG [SECTION 51A of the unlawful activities (prevention)
act 1967

 Money laundering is the processing of criminal proceeds to disguise its illegal origin.
 The process of money laundering can be classified into three stages, namely,
placement, layering and integration.
 The Prevention of Money-laundering Act, 2002 was enacted to prevent money
laundering and to provide for confiscation of property derived from, or involved
in, money laundering and for matters connected therewith or incidental thereto.
 The Act also addresses the international obligations under the Political
Declaration and Global Programme of Action adopted by the General Assembly
of the United Nations to prevent money laundering.
 The Act contains provisions pertaining to offences and punishment for money
laundering, attachment, adjudication and confiscation, obligations of banking
companies, financial institutions and intermediaries, Summons, Searches and
Seizures etc.
 The Act states that whoever, acquires, owns, possesses, or transfers any proceeds
of crime or knowingly enters into any transaction which is related to proceeds of
crime directly or indirectly or conceals or aids in the concealment of the proceeds
of crime, shall be guilty of offence of money laundering.
 Every banking company, financial institution and intermediary is required to
maintain a record of all transactions, the nature and value of which may be
prescribed, whether such transactions comprise of a single transaction or a series
of transactions legally connected to each other, and when such series of
transactions take place within a month.
 The objective of Know Your Customer (KYC) Norms/Anti-Money Laundering

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(AML) Measures/ Combating of Financing of Terrorism (CFT) guidelines is to

prevent banks from being used, intentionally or unintentionally, by criminal
elements for money laundering or terrorist financing activities. KYC procedures
also enable banks to know/understand their customers and their financial dealings
better which in turn help them manage their risks prudently.

What is the connection of money laundering with society at large?
The possible social and political costs of money laundering, if left unchecked or dealt with
ineffectively, are serious. Organised crime can infiltrate financial institutions, acquire
control of large sectors of the economy through investment, or offer bribes to public officials
and indeed governments.
The economic and political influence of criminal organisations can weaken the social
fabric, collective ethical standards, and ultimately the democratic institutions of society.
In countries transitioning to democratic systems, this criminal influence can undermine

the transition. Most fundamentally, money laundering is inextricably linked to the
underlying criminal activity that generated it. Laundering enables criminal activity to
continue.
What influence does money laundering have on economic development?
Launderers are continuously looking for new routes for laundering their funds. Economies
with growing or developing financial centres, but inadequate controls are particularly
vulnerable as established financial centre countries implement comprehensive anti-money
laundering regimes.
Differences between national anti-money laundering systems will be exploited by

launderers, who tend to move their networks to countries and financial systems with weak
or ineffective countermeasures.
Some might argue that developing economies cannot afford to be too selective about the
sources of capital they attract. But postponing action is dangerous. The more it is deferred, the
more entrenched organised crime can become.
As with the damaged integrity of an individual financial institution, there is a damping

effect on foreign direct investment when a country’s commercial and financial sectors are
perceived to be subject to the control and influence of organised crime. Fighting money
laundering and terrorist financing is therefore a part of creating a business friendly
environment which is a precondition for lasting economic development.
Section 8(3) provides that where the Adjudicating Authority decides under sub-section (2)
that any property is involved in money-laundering, he shall, by an order in writing, confirm
the attachment of the property made under sub-section (1) of section 5 or retention of
property or record seized or frozen under section 17 or section 18 and record a finding to

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that effect, whereupon such attachment or retention or freezing of the seized or frozen
property or record shall—
(a) continue during investigation for a period not exceeding three hundred and sixty-five
days or the pendency of the proceedings relating to any offence under this Act before
a court or under the corresponding law of any other country, before the competent
court of criminal jurisdiction outside India, as the case may be; and
(b) become final after an order of confiscation is passed under sub-section (5) or sub-
section (7) of section 8 or section 58B or sub-section (2A) of section 60 by the Special
Court.
Section 8(8) provides that where a property stands confiscated to the Central Government
under sub-section (5), the Special Court, in such manner as may be prescribed, may also
direct the Central Government to restore such confiscated property or part thereof of a
claimant with a legitimate interest in the property, who may have suffered a quantifiable
loss as a result of the offence of money laundering: Provided that the Special Court shall
not consider such claim unless it is satisfied that the claimant has acted in good faith and
has suffered the loss despite having taken all reasonable precautions and is not involved in
the offence of money laundering. Provided further that the Special Court may, if it thinks
fit, consider the claim of the claimant for the purposes of restoration of such properties
during the trial of the case in such manner as may be prescribed.
Obligation of Banking Companies, Financial Institutions and Intermediaries
Chapter IV of the Act deals with obligations of Banking companies, financial institutions and
intermediaries. According to Section 12(1) requires every reporting entity shall—
(a) maintain a record of all transactions, including information relating to transactions

covered under clause (b), in such manner as to enable it to reconstruct individual
transactions;
(b) furnish to the Director within such time as may be prescribed, information relating to
such transactions, whether attempted or executed, the nature and value of which may
be prescribed.
(c) maintain record of documents evidencing identity of its clients and beneficial
owners as well as account files and business correspondence relating to its clients.
The objective of KYC Norms/ AML Measures/ CFT Guidelines
The objective of Know Your Customer (KYC) Norms/Anti-Money Laundering (AML)
Measures/Combating of Financing of Terrorism (CFT) guidelines is to prevent banks from
being used, intentionally or unintentionally, by criminal elements for money laundering or
terrorist financing activities. KYC procedures also enable banks to know/understand their
customers and their financial dealings better which in turn help them manage their risks
prudently.
Information to be preserved
Banks are required to maintain all necessary information in respect of transactions to
permit reconstruction of individual transaction, including the following information:
(a) the nature of the transactions;

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(b) the amount of the transaction and the currency in which it was denominated;
(c) the date on which the transaction was conducted; and
(d) the parties to the transaction
Reporting to Financial Intelligence Unit – India
In terms of the PMLA Rules, banks are required to report information relating to cash
and suspicious transactions and all transactions involving receipts by non-profit
organisations of value more than rupees ten lakh or its equivalent in foreign currency
to the Director, Financial Intelligence Unit-India (FIU-IND) in respect of transactions

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Chapter: 19 CONTRACT ACT 1872
PAST PAPER CONCEPTS

 SECTION 10: Agreements are contracts
 SECTION 2(a): Offer
 SECTION 25: No consideration, no contract.
 Privity of contract Contract
 Cannot confer right or impose obligation arising under it on any person or
agent except the parties to the contract
 SECTION 11 Competent to contract
 SECTION 20: Both the parties to an agreement are under a mistake as to a
matter of fact essential to the agreement, the agreement is void
 SECTION 24: Agreement is restraint of trade
 SECTION 29: Agreement, the meaning of which is not certain, are void
 SECTION 11(2): Restriction on existing partner
 SECTION 30: Agreements by way of wager, void
 SECTION 31: Contingent contract
 SECTION 32: Enforcement of contract enforcing on an event happening
 SECTION 33: Enforcement of contract enforcing on an event not happening
 SECTION 35: When event on which contract is contingent to be deemed
impossible, if it is the conduct of a living person
 SECTION 36: Agreements contingent on impossible events, void
 SECTION 36(2) & SECTION 53 of PARTNERSHIP ACT: Restriction on
outgoing partner
 SECTION 56: Agreement to do impossible acts
 SECTION 71: Finder of goods
 SECTION 128: Surety’s liability
 SECTION 129: Contingent guarantee
 SECTION 130: Revocation of a continuing guarantee
 SECTION 178: Pledge by mercantile agent
 SECTION 178A: Pledge by person in possession under voidable contract
 SECTION 179: Pledge where pawnor has limited interest
 SECTION 191: Sub-agent
 SECTION 192: Representation of principal by sub-agent duly appointed
 SECTION 193: Agents responsible for sub-agent appointed without authority
 SECTION 202: When the agency is coupled with interest
 SECTION 210: Termination sub agents authority
 SECTION 212: Skills and diligence required from agent

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 A contract is an agreement enforceable at law, made between two or more
persons, by which rights are acquired by one or more to acts or forbearances
on the part of the other or others.
 Every promise and every set of promises, forming the consideration for each
other, is an agreement.
 All agreements are contracts if they are made by the free consent of parties
competent to contract, for a lawful consideration and with a lawful object, and
are not hereby expressly declared to be void.
 In flaw contract There may be the circumstances under which a contract made
under these rules may still be bad, because there is a flaw, vice or error
somewhere. As a result of such a flaw, the apparent agreement is not a real
agreement.
 Section 27 of the Indian Contract Act states that every agreement by which any
one is restrained from exercising a lawful profession, trade or business of any
kind, is, to that extent, void.
 The literal meaning of the word “wager” is a “bet”. Wagering agreements are
nothing but ordinary betting agreements.
 An agreement not enforceable by law is void ab initio.
 A contingent contract is a contract to do or not to do something, if some event
collateral to such contract, does or does not happen. Contract of insurance and
contracts of indemnity and guarantee are popular instances of contingent
contracts.
 A quasi-contract rests on the equitable principle that a person shall not be
allowed to enrich himself unjustly at the expense of another. In truth, it is not a
contract at all. It is an obligation which the law creates, in the absence of any
agreement, when any person is in the possession of one persons money, or its
equivalent, under such circumstances that in equity and good conscience he
ought not to retain it, and which in justice and fairness belongs to another. It is
the duty and not an agreement or intention which defines it.
 A contract is said to be discharged or terminated when the rights and
obligations arising out of a contract are extinguished.
 Where a contract is broken, the injured party has several courses of action
open to him. The appropriate remedy in any case will depend upon the subject-
matter of the contract and the nature of the breach.
 A contract of indemnity is a contract by which one party promises to save the
other party from loss caused to him by the conduct of the promisor himself, or
by the conduct of any other person.
 A bailment is a transac on whereby one person delivers goods to another person for
somepurpose, upon a contract that they are, when the purpose is accomplished to
be returned orotherwise disposed of according to the direc ons of the person
delivering them

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HIGLITED PART IN MODULE

Three consequences follow from the above discussion:
(i) To constitute a contract, the parties must intend to create legal relationship.
(ii) The law of contract is the law of those agreements which create obligations, and those
obligations which have their source in agreement.
(iii) Agreement is the genus of which contract is the specie and, therefore, all contracts
are agreements but all agreements are not contracts.
The essential elements of a valid contract are:
(i) An offer or proposal by one party and acceptance of that offer by another party resulting in
an agreement
– consensus-ad-idem.
(ii) An intention to create legal relations or an intent to have legal consequences.

(iii) The agreement is supported by a lawful consideration.
(iv) The parties to the contract are legally capable of contracting.
(v) Genuine consent between the parties.
(vi) The object and consideration of the contract is legal and is not opposed to public policy.
(vii) The terms of the contract are certain.
(viii) The agreement is capable of being performed i.e., it is not impossible of being
performed.
Lapse of Offer
Section 6 deals with various modes of lapse of an offer. It states that an offer lapses if—
(a) it is not accepted within the specified time (if any) or after a reasonable time, if none is
specified.
(b) it is not accepted in the mode prescribed or if no mode is prescribed in some usual
and reasonable manner, e.g., by sending a letter by mail when early reply was
requested;
(c) the offeree rejects it by distinct refusal to accept it;
(d) either the offeror or the offeree dies before acceptance;
(e) the acceptor fails to fulfill a condition precedent to an acceptance.
(f) the offeree makes a counter offer, it amounts to rejection of the offer and an offer
by the offeree may be accepted or rejected by the offeror.
But in order to avoid a contract on the ground of misrepresentation, it is necessary to
prove that:
(i) there was a representation or assertion,

(ii) such assertion induced the party aggrieved to enter into the contract.
(iii) the assertion related to a matter of fact ( and not of law as ignorance of law is no
excuse).
(iv) the statement was not a mere opinion or hearsay, or commendation (i.e.,
reasonable praise). For example an advertisement saying, “washes whiter than the
whitest”.

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(v) the statement which has become or turned out to be untrue, was made with an honest
belief in its truth.
Difference between Fraud and Innocent Misrepresentation
1. Fraud implies an intent to deceive, which is lacking if it is innocent misrepresentation.

2. In case of misrepresentation and fraudulent silence, the defendant can take a good plea
that the plaintiff had the means of discovering the truth with ordinary diligence. This
argument is not available if there is fraud (Section 19- exception).
3. In misrepresentation the plaintiff can avoid or rescind the contract. In fraud, the plaintiff
can claim damages as well.
4. If there is fraud, it may lead to prosecution for an offence of cheating under the Indian
Penal Code.
Section 23 of the Indian Contract Act, 1872 provides that the consideration or object
of an agreement is
(i) lawful unless it is forbidden by law; or

(ii) it is of such nature that if permitted it would defeat the provisions of law; or
(iii) is fraudulent; or
(iv) involves or implies injury to the person or property of another; or
(v) the Court regards it an immoral or opposed to public policy.
Exception to General Rule of no Recovery of Money or Property
In the following cases, a party to an illegal agreement may sue to recover money paid or
property transferred:
(a) Where the transfer is not in pari delicto (equally guilty) with the defendant, i.e. the
transferee. For example, where A is induced to enter into an illegal agreement by the
fraud of B, A may recover the money paid if he did not know that the contract was
illegal.
(b) If the plaintiff can frame a cause of action entirely dependent of the contract.
(c) Where a substantial part of the illegal transaction has not been carried out and
the plaintiff is truly and genuinely repentant. (Bigos v. Bonstead(1951), All E.R. 92).
Quasi-Contracts or Implied Contracts under the Indian Contract Act
The following types of quasi-contracts have been dealt within the Indian Contract Act—
(a) Necessaries supplied to person incapable of contracting or to anyone whom he is

illegally bound to support - Section 68.
(b) Suit for money had and received - Section 69 and 72.
(c) Quantum Meruit
(d) Obligations of a finder of goods - Section 71.
(e)Obligation of person enjoying benefit of a non-gratuitous act - Section 70

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Rights of Indemnity Holder when Sued
Under Section 125, the promisee in a contract of indemnity, acting within the scope of his
authority, is entitled to recover from the promisor—
1. all damages which he may be compelled to pay in any suit in respect of any matter to
which the promise to indemnify applies;
2. all costs which he may be compelled to pay in any such suit if, in bringing or defending
it, he did not contravene the orders of the promisor, and acted as if it would have been
prudent for him to act in the absence of any contract of indemnity, or if the promisor
authorised him to bring or defend the suit; and
3. all sums which he may have paid under the terms of any compromise of any such
suit, if the compromise was not contrary to the orders of the promisor, and was one
which it would have been prudent for the promise to make in the absence of any
contract of indemnity, or if the promisor authorised him to compromise the suit.
Duties of bailor
The bailor has the following duties:
(a) The bailor must disclose all the known faults in the goods; and if he fails to do that, he
will be liable for any damage resulting directly from the faults (Section 150). For
example, A delivers to B, a carrier, some explosive in a case, but does not warn B.
The case is handled without extraordinary care necessary for such articles and
explodes. A is liable for all the resulting damage to men and other goods.
In the case of bailment for hire, a still greater responsibility is placed on the bailor. He will
be liable even if he did not know of the defects (Section 150). A hires a carriage of B.
The carriage is unsafe though B does not know this. A is injured. B is responsible to
A for the injury.
(B) It is the duty of the bailor to pay any extraordinary expenses incurred by the bailee. For
example, if a horse is lent for a journey, the expense of feeding the house would, of
course, subject to any special agreement be borne by the bailee. If however the horse
becomes ill and expenses have been incurred on its treatment, the bailor shall have to
pay these expenses (Section 158).
(C) The bailor is bound to indemnify the bailee for any cost or costs which the bailee
may incur because of the defective title of the bailor of the goods bailed (Section 164).
Creation of Agency
Ratification is effective only if the following conditions are satisfied –
(a) The agent must expressly contract as agent for a principal who is in existence and
competent to contract.
(b) The principal must be competent to contract not only at the time the agent acted, but
also when he ratified the agents act.
(c) The principal at the time of ratification has full knowledge of the material facts, and
must ratify the whole contract, within a reasonable time.
(d) Ratification cannot be made so as to subject a third-party to damages, or terminate any

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right or interest of a third person.

(e)Only lawful acts can be ratified.
Responsibilities of Principal to Third-parties

Principal Liable for Agent’s Torts (Section 238)
If an agent commits a tort or other wrong (e.g., misrepresentation or fraud) during his
agency, whilst acting within the scope of his actual or apparent authority, the principal
is liable. But the agent is also personally liable, and he may be sued also. The principal
is liable even if the tort is committed exclusively for the benefit of the agent and against
the interests of the principal

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Chapter: 20 SPECIFIC RELIEF ACT 1963
PAST PAPER CONCEPTS

 SECTION 4 Specific relief granted only for enforcing individual ‘Civil Rights’
and for enforcing ‘Penal Laws’
 SECTION 6 Suit by person dispossessed of immovable property
 SECTION 14 Contracts not specifically enforceable
 SECTION 15 Who may obtain specific performance
 SECTION 11(2) A contract made by a trustee in excess of his power or in
breach of trust cannot be specifically enforced
 SECTION 12(3) Where a party to a contract is unable to perform the whole of
his part of it, and the part which must be left unperformed either
 SECTION 16 Personal bars to relief
 SECTION 20 Substitute performance of contract
 SECTION 26 Instrument may be rectified
 SECTION 27 Rescission of contracts
 SECTION 31 When cancellation may be ordered
 SECTION 32 Instrument may be partially cancelled
 SECTION 34 Discretion of court as to declaration of status or right
 SECTION 35 Effect of declaration
 SECTION 38 Perpetual injunction when granted
 SECTION 42 Injunction to perform negative agreement

 The Specific Relief Act, 1963 was enacted to define and amend the law
relating to certain kinds of specific relief. It contains provisions, inter alia,
specific performance of contracts, contracts not specifically enforceable,
parties who may obtain and against whom specific performance may be
obtained, etc.
 The tremendous economic development since the enactment of the Act have
brought in enormous commercial activities in India including foreign direct
investments, public private partnerships, public utilities infrastructure
developments, etc.; which have prompted extensive reforms in the related laws
to facilitate enforcement of contracts, settlement of disputes in speedy manner.
 It has been felt that the Specific Relief Act is not in tune with the rapid economic
growth happening in our country and the expansion of infrastructure activities that
are needed for the o verall development of the country, Parliament enacted
Specific Relief (Amendment) Act, 2018 and came into effect from 01 October,
2018.

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 Section 14 lays down the contracts which cannot be specifically enforced,

namely:—(a) where a party to the contract has obtained substituted performance
of contract in accordance with the provisions of section 20;(b) a contract, the
performance of which involves the performance of a continuous duty which the
court cannot supervise;(c) a contract which is so dependent on the personal
qualifications of the parties that the court cannot enforce specific performance of
its material terms; and (d) a contract which is in its nature determinable.
 Where the court considers it necessary to get expert opinion to assist it on any
specific issue involved in the suit, it may engage one or more experts and direct to
report to it on such issue and may secure attendance of the expert for providing
evidence, including production of documents on the issue.
 Where the contract is broken due to non-performance of promise by any party, the
party who suffers by such breach shall have the option of substituted performance
through a third party or by his own agency, and, recover the expenses and other
costs actually incurred, spent or suffered by him, from the party committing such
breach.
 Injunction shall not be granted by a court in a suit under this Act involving a contract
relating to an infrastructure project specified in the Schedule, where granting
injunction would cause impediment or delay in the progress or completion of such
infrastructure project.
 State Government, in consultation with the Chief Justice of the High Court, shall
designate, by notification published in the Official Gazette, one or more Civil
Courts as Special Courts, within the local limits of the area to exercise jurisdiction
and to try a suit under Specific Relief Act in respect of contracts relating to
infrastructure projects.
 A suit filed shall be disposed of by the court within a period of twelve months from
the date of service of summons to the defendant. The period may be extended for a
further period not exceeding six months in aggregate after recording reasons in
writing for such extension by the court.

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Chapter: 21 SALE OF GOODS ACT 1930
IMPORTANT CONCEPTS
 Unpaid seller & its rights.
 Sale v/s agreement to sell.
 Sale v/s Hire Purchase Agreement.
 Condition and warranty
 Right of lien v/s Right of stoppage in transit.
 Distinction between sale and purchase agreement
 Recovery of money

 In a sale, the property in the goods sold passes to the buyer at the time of
contract so that he becomes the owner of the goods. In an agreement to sell,
the ownership does not pass to the buyer at the time of the contract, but it
passes only when it becomes sale on the expiry of certain time or the
fulfilment of some conditions subject to which the property in the goods is to
be transferred.
 Where goods are delivered to another on terms which indicate that the property
is to pass at once the contract must be one of sale and not bailment.
 The subject matter of the contract of sale is essentially goods. According to
Section 2(7) of the Sale of Goods Act, “goods” means every kind of movable
property other than actionable claims and money and includes stock and
shares, growing crops, grass and things attached to or forming part of the land
which are agreed to be severed before sale or under the contract of sale. Goods
may be (a) existing, (b) future, or (c) contingent. The existing goods may be (i)
specific or generic, (ii) ascertained or unascertained.
 The sole purpose of a sale is the transfer of ownership of goods from the seller
to the buyer. The general rule is that only the owner of goods can sell the
goods. Conversely, the sale of an article by a person who is not or who has not
the authority of the owner, gives no title to the buyer.
 It is the duty of the seller and buyer that the contract is performed. The duty of
the seller is to deliver the goods and that of the buyer to accept the goods and
pay for them in accordance with the contract of sale.
 Unless otherwise agreed, payment of the price and the delivery of the goods
and concurrent conditions, i.e., they both take place at the same time as in a
cash sale over a shop counter.
 Delivery is the voluntary transfer of possession from one person to another.
Delivery may be actual, constructive or symbolic.
 A sale by auction is a public sale where goods are offered to be taken by
bidders. It is a proceeding at which people are invited to complete for the
purchase of property by successive offer of advancing sums.

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Rights of purchaser or lessee against person with no title or imperfect title
Contracts not specifically enforceable Section 14 lays down the contracts which
cannot be specifically enforced. The following contracts cannot be specifically
enforced, namely:— (a) where a party to the contract has obtained substituted
performance of contract in accordance with the provisions of section 20; (b) a
contract, the performance of which involves the performance of a continuous duty
which the court cannot supervise; (c) a contract which is so dependent on the personal
qualifications of the parties that the court cannot enforce specific performance of its
material terms; and (d) a contract which is in its nature determinable.
Personal bars to relief
Contract to sell or let property by one who has no title, not specifically enforceable As
per Section 17, a contract to sell or let any immovable property cannot be specifically
enforced in favour of a vendor or lessor— (a) who, knowing himself not to have any
title to the property, has contracted to sell or let the property; (b) who, though he
entered into the contract believing that he had a good title to the property, cannot at the
time fixed by the parties or by the court for the completion of the sale or letting, give
the purchaser or lessee a title free from reasonable doubt. The above provisions shall
also apply, as far as may be, to contracts for the sale or hire of movable property
Characteristics of an injunction
An injunction has three characteristic features; (a) It is a judicial process. (b) The
object of this judicial process is to restrain or to prevent. (c) The act restrained or
prevented is a wrongful act. An injuction acts or operates always in personam. If the
wrongful act has already taken place, the injunction prevents its repetition. If it is
merely threatened, the threat is prevented from being executed.
Effect of Perishing of Goods Price
No sale can take place without a price. Thus, if there is no valuable consideration to
support a voluntary surrender of goods by the real owner to another person, the
transaction is a gift, and is not governed by the Sale of Goods Act. Therefore, price,
which is money consideration for the sale of goods, constitutes the essence for a
contract of sale. It may be money actually paid or promised to be paid. If a
consideration other than money is to be given, it is not a sale.

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Modes of Fixing Price (Sections 9 and 10)
Warranties
When condition sinks to the level of warranty
In some cases a condition sinks or descends to the level of a warranty. The first two
cases depend upon the will of the buyer, but the third is compulsory and acts as
estoppel against him. (a) A condition will become a warranty where the buyer waives
the condition; or (b) A condition will sink to the level of a warranty where the buyer
treats the breach of condition as a breach of warranty; or (c) Where the contract is
indivisible and the buyer has accepted the goods or part thereof, the breach of
condition can only be treated as breach of warranty. The buyer can only claim
damages and cannot reject the goods or treat the contract as repudiated. Sometimes the
seller may be excused by law from fulfilling any condition or warranty and the buyer
will not then have a remedy in damages.
Implied conditions under a sale by sample (Section 17)
In a contract of sale by sample: (a) there is an implied condition that the bulk shall
correspond with the sample in quality; (b) there is another implied condition that the
buyer shall have a reasonable opportunity of comparing the bulk with the sample; (c)
it is further an implied condition of merchantability, as regards latent or hidden defects
in the goods which would not be apparent on reasonable examination of the sample.
“Worsted coating” quality equal to sample was sold to tailors, the cloth was found to
have a defect in the fixture rendering the same unfit for stitching into coats. The seller
was held liable even though the same defect existed in the sample, which was
examined.

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Exceptions: Section 16 lays down the following exceptions to the doctrine of

Caveat Emptor:
(1) Where the seller makes a false representation and the buyer relies on it.
(2) When the seller actively conceals a defect in the goods which is not visible on a
reasonable examination of the same.
(3) When the buyer, relying upon the skill and judgement of the seller, has expressly
or impliedly communicated to him the purpose for which the goods are required.
(4) Where goods are bought by description from a seller who deals in goods of that
description.
Passing of Risk (Section 26)
In Consolidated Coffee Ltd. v. Coffee Board, (1980 3 SCC 358), one of the terms
adopted by coffee board for auction of coffee was the property in the coffee knocked
down to a bidder would not pass until the payment of price and in the meantime the
goods would remain with the seller but at the risk of the buyer, In such cases, risk and
property passes on at different stages. In Multanmal Champalal v. Shah & Co., AIR
(1970) Mysore 106, goods were despatched by the seller from Bombay to Bellary
through a public carrier. According to the terms of the contract, the goods were to
remain the property of the seller till the price was paid though the risk was to pass to
the buyer when they were delivered to public carrier for despatch. When the goods
were subsequently lost before the payment of the price (and the consequent to the
passing of the property to the buyer), the Court held that the loss was to be borne by
the buyer.
Acceptance of Goods by the Buyer
Acceptance of the goods by the buyer takes place when the buyer: (a) intimates to the
seller that he has accepted the goods; or (b) retains the goods, after the lapse of a
reasonable time without intimating to the seller that he has rejected them; or (c) does
any act on the goods which is inconsistent with the ownership of the seller, e.g.,
pledges or resells. If the seller sends the buyer a larger or smaller quantity of goods
than ordered, the buyer may: (i) reject the whole; or (ii) accept the whole; or (iii)
accept the quantity ordered and reject the rest. If the seller delivers with the goods
ordered, goods of a wrong description, the buyer may accept the goods ordered and
reject the rest, or reject the whole. Where the buyer rightly rejects the goods, he is not
bound to return the rejected goods to the seller. It is sufficient if he intimates the seller
that he refuses to accept them.In that case, the seller has to remove them.

72 | P a g e
Rights of an Unpaid Seller against the Goods
Partners, Firm and Firm Name

Persons who have entered into partnership with one another are called individually
“partners” and collectively “a firm”, and the name under which their business is
carried on is called the “firm name”. (Section 4)
In law, “a firm” is only a convenient phrase for describing the partners, and the firm
has no legal existence apart from its partners. It is neither a legal entity, nor is it a
person as is a corporation; it is a collective name of the members of a partnership.
Change in a Firm
The Indian Partnership Act, 1932, contemplates the following changes in a partnership
firm:
1. Changes in the constitution of a firm.
2. Changes in the nature of a business or undertakings.
3. Changes in the duration of a firm. A change in the constitution of a firm takes place
when:
(a) a new partner is introduced as a partner in a firm; (Section 31)
(b) a partner retires from a firm; (Section 32),
(c) a partner is expelled from a firm; (Section 33),
(d) a partner is adjudicated as an insolvent; (Section 34) and
(e) a partner dies. (Section 35)
In the absence of any such agreement, express or implied, the property of the
firm is deemed to include:
(a) all property, rights and interests which have been brought into the common stock

73 | P a g e
for the purposes of the partnership by individual partners, whether at the

commencement of the business or subsequently added thereto;
(b) those acquired in the course of the business with money belonging to the firm; and
(c) the goodwill of the business. (Section 14)
The ultimate test to determine the property of the firm is the real intention of the
partners and the Court can take into consideration the following facts:
1. The source of the purchase money.
2. The reason due to which the property was purchased or acquired.
3. The object for which the property was purchased or acquired. 4. The mode in
which the property was obtained.
5. The mode in which the property was dealt with.
6. The use to which the property was put to.
Exceptions to Holding Out
The doctrine of Holding Out is not applicable in the following cases:
(1) It does not apply to cases of torts committed by partners. A person, therefore,
cannot be held liable for the torts of another simply because that other person held
himself to be his partner. (2) It does not extend to bind the estate of a deceased partner,
where after a partner’s death the business of the firm is continued in the old firm
name. [Section 28(2)]
(3) It also does not apply where the Holding Out partner has been adjudicated
insolvent. (Section 45)
Minor Admitted to the Benefits of Partnership
In view of Section 11 of the Indian Contract Act, 1872, and the decision of the Privy
Council in Nohori Bibi Dharmo Das Ghose, (1903) 30 I.A 114, a minor’s agreement is
altogether void and unenforceable. An agreement is an essential ingredient in a
partnership, it follows that a minor cannot enter into an agreement of partnership. On
the same principle, a minor cannot be clothed with all the rights and obligations of a
fullfledged partner through a guardian. Section 5 states “The relation of partnership
arises from a contract...” The minor is incompetent to contract and, therefore,
partnership cannot come into existence if the parties to a contract of partnership
consist of one major and one minor. The only provision that Section 30 makes is that
with the “consent of all the partners for the time being, a minor can be admitted into
the benefits of partnership to which a minor is going to be admitted”. A partnership
firm cannot be formed with only minors as partners. There must be atleast two major
partners before a minor is admitted into the benefits of partnership.

74 | P a g e
Election by Minor
If he becomes or elects to become a partner, his position will be as under:
 His rights and liabilities will be similar to those of a full-fledged partner.
 He will be personally liable for all the acts of the firm, done since he was first
admi ed to thebenefits of the partnership.
 His share of profits and property remains the same as was before, unless altered by
agreement.
If he elects not to become a partner, then:
His rights and liabili es shall con nue to be those of a minor upto the date of his giving
publicno ce.
 His share shall not be liable for any acts of the firm done a er the date of the public
no ce.
 He is en tled to sue the partners for his share of the property and profits in the firm.
[Sec on30(8)]

75 | P a g e
Chapter: 22 PARTNERSHIP ACT 1932
PAST PAPER CONCEPTS

 SECTION 14 The property of the firm
 SECTION 28 Partner by estoppels or holding out
 SECTION 51 Return of premium on premature dissolution
 SECTION 55 Right to carry on business when goodwill is sold

• The Indian Partnership Act, 1932 lays down the important provisions relating to
partnership contracts.
• According to Section 4 “Partnership is the relation between persons who have agreed to
share the profits of a business carried on by all or any of them acting for all.
• A partnership may either be for a particular adventure or for a fixed period. It
may also be a partnership at will.
• The minor is incompetent to contract and, therefore, partnership cannot come into
existence if the parties to a contract of partnership consist of one major and one minor.
• Every partner is an agent of the firm and of other partners for the purpose of the
business of the firm.
• The authority of a partner means the capacity of a partner to bind the firm by
his act. This authority may be express or implied.
• All partners are liable jointly and severally for all acts or omissions binding on the
firm including liabilities arising from contracts as well as torts.
• The dissolution of partnership between all the partners of a firm is called the
“Dissolution of the Firm”.
• A dissolution does not necessarily follow because the partnership has ceased to do
business, for the partnership may continue for the purpose of realising the assets.

PARTNERS AS AGENTS
AUTHORITY OF A PARTNER
The authority of a partner means the capacity of a partner to bind the firm by his act.
This authority may be express or implied.
i) Express Authority: - Authority is said to be express when it is given by words, spoken
or written. The firm is bound by all acts of a partner done within the scope of his express

76 | P a g e
authority even if the acts are not within the scope of the partnership business.
ii) Implied Authority: - The implied authority of a partner is also known as ostensible
or apparent authority, Sections 19 and 22 contain provisions regarding the scope of the
implied authority of a partner. The implied authority is subject to the following
conditions:
1. the act done must relate to the “normal business” of the firm;
2. the act must be done in the usual way;
3. the act must be done in the name of the firm.
Dissolution of Partnership
The dissolution of partnership takes place (even when there is no dissolution of the
firm) in the following circumstances:
(a) By the expiry of the fixed term for which the partnership was formed. [Section 42(a)]
(b) By the completion of the adventure. [Section 42(b)]
(c) By the death of a partner. [Section 42(c)]
(d) By the insolvency of a partner. [Section 42(d)]
(e) By the retirement of a partner. [Section 42(e)
In all the above cases, the remaining partners may continue the firm in pursuance of an
agreement to that effect. If they do not continue then the dissolution of the firm takes
place automatically
Settlement of Accounts on Dissolution
Section 48 of the Act provides that in settling accounts between the partners after a
dissolution of partnership, the following rules shall, subject to any agreement, be
observed:
(a) Losses, including deficiencies of capital shall be paid first out of undistributed profits,
next out of capital, and lastly, if necessary, by the partners individually in the proportion
in which they were entitled to share profits
(b) The assets of the firm, including the sums, contributed by the partners to make
up losses or deficiencies of capital shall be applied in the following manner and
order:
(i) in paying outside creditors;
(ii) in repaying advances made by partners (distinct from investment of capital);
(iii) in repaying capital to partners; and
(iv) the ultimate residue, if any, shall be divided among the partners in the proportions
in which profits are divisible.

77 | P a g e
Sale of Goodwill
Where goodwill is sold, either to a partner or to an outsider, the value is divisible

among the partners in the same manner as they share profits and losses, unless
otherwise agreed.
The rights of the buyer and seller of the goodwill are as follows:
(a) Buyer’s rights: On the sale of goodwill the buyer may, unless the terms in the
contract of sale provide otherwise:
(i) Represent himself in continuing the business,
(ii) maintain his exclusive rights to the use of the firm name, and
(iii) solicit former customers of the business and restrain the seller of the goodwill from
doing so.
(iv) Seller’s rights: The vendors may enter into competition with the purchaser unless
he is prevented by a valid restraint clause in the contract of sale.

78 | P a g e
Chapter: 23 NEGOTIABLE INSTRUMENT ACT 1881
PAST PAPER CONCEPTS

 SECTION 26 Capacity to make, promissory notes
 SECTION 36 Liability of prior parties to holder in due course
 Order instrument & Bearer instrument

• The law relating to negotiable instruments is contained in the Negotiable Instruments
Act, 1881. It is an Act to define and amend the law relating to promissory notes, bills of
exchange and Cheques.
• The term “negotiable instrument” means a document transferable from one person to
another.
• A “promissory note” is an instrument in writing containing an unconditional
undertaking, signed by the maker to pay a certain sum of money to, or to the order of, a
certain person, or only to bearer of the instrument.
• A “bill of exchange” is an instrument in writing containing an unconditional order,
signed by the maker, directing a certain person to pay a certain sum of money only to or
to the order of, a certain person or to the bearer of the instrument.
• Bills of exchange were originally used for payment of debts by traders residing in one
country to another country with a view to avoid transmission of coin. Now-a-days they
are used more as trade bills both in connection with domestic trade and foreign trade and
are called inland bills and foreign bills respectively.
• A ‘Cheque’ is a bill of exchange drawn on a specified banker and not expressed to be
payable otherwise than on demand and it includes the electronic image of a truncated
Cheque and a Cheque in the electronic form.

79 | P a g e
IMPORTANT CHARACTERISTICS OF NEGOTIABLE INSTRUMENTS
Parties to a Promissory Note:
A promissory note has the following parties:

(a) The maker: the person who makes or executes the note promising to pay the
amount stated therein.
(b) The payee: one to whom the note is payable.
(c) The holder: is either the payee or some other person to whom he may have endorsed the
note.
(d) The endorser.
(e) The endorsee.
Essentials of a Bill of Exchange:
(1) It must be in writing.
(2) It must contain an unconditional order to pay money only and not merely a request.
(3) It must be signed by the drawer.
(4) The parties must be certain.
(5) The sum payable must also be certain.
(6) It must comply with other formalities e.g. stamps, date, etc.

80 | P a g e
Note: By virtue of Section 31 of the Reserve Bank of India Act, no bill of exchange or
hundi can be made payable to bearer on demand and no promissory note or a bank
draft can be made payable to bearer at all, whether on demand or after a specified time.
Only a cheque can be payable to bearer on demand.
Parties to a cheque
The following are the parties to a cheque:

• The drawer: The person who draws the cheque.
• The drawee: The banker of the drawer on whom the cheque is drawn.
• The payee, holder, endorser and endorsee: same as in the case of a bill.
Distinction between Cheques and Bills of Exchange
As a general rule, the provisions applicable to bills payable on demand apply to

cheques, yet there are few points of distinction between the two, namely:
(a) A cheque is a bill of exchange and always drawn on a banker, while a bill may be
drawn on any one, including banker.
(b) A cheque can only be drawn payable on demand, a bill may be drawn payable on
demand, or on the expiry of a specified period after sight or date.
(c) A bill payable after sight must be accepted before payment can be demanded, a cheque
does not require acceptance and is intended for immediate payment.
(d) A grace of 3 days is allowed in the case of time bills, while no grace is given in
the case of a cheque, for payment.
(e) The drawer of a bill is discharged, if it is not presented for payment, but the drawer
of a cheque is discharged only if he suffers any damage by delay in presentment for
payment.
(f) Notice of the dishonour of a bill is necessary, but not in the case of a cheque.
(g) The cheque being a revocable mandate, the authority may be revoked by
countermanding payment, and is determined by notice of the customer’s death or
insolvency. This is not so in the case of bill.
(h) A cheque may be crossed, but not a bill.
Payment in due Course (Section 10)
A payment will be a payment in due course if:

(a) it is in accordance with the apparent tenor of the instrument, i.e., according to what
appears on the face of the instrument to be the intention of the parties;
(b) it is made in good faith and without negligence, and under circumstances which do
not afford a ground for believing that the person to whom it is made is not entitled to
receive the amount;

81 | P a g e
(c) it is made to the person in possession of the instrument who is entitled as holder
to receive payment;
(d) payment is made under circumstances which do not afford a reasonable ground
believing that he is not entitled to receive payment of the amount mentioned in the
instrument; and
(e) payment is made in money and money only
Collecting Banker
A banker who has in good faith and without negligence received payment for a customer
of a cheque crossed generally or specially to himself shall not, in case the title to the
cheque proves defective, incur any liability to the true owner of the cheque by reason of
only having received such payment.
Explanation: A banker receives payment of a crossed cheque for a customer within the
meaning of this section notwithstanding that he credits his customer’s account with the
amount of the cheque before receiving payment thereof.
Rights of Holder against

Banker
Crossing of Cheques
A cheque is either “open” or “crossed”. An open cheque can be presented by the payee
to the paying banker and is paid over the counter. A crossed cheque cannot be paid
across the counter but must be collected through a banker.
A crossing is a direction to the paying banker to pay the money generally to a banker or
to a particular banker, and not to pay otherwise. The object of crossing is to secure
payment to a banker so that it could be traced to the person receiving the amount of the
cheque. Crossing is a direction to the paying banker that the cheque should be paid only
to a banker or a specified banker. To restrain negotiability, addition of words “Not
Negotiable” or “Account Payee Only” is necessary. A crossed bearer cheque can be
negotiated by delivery and crossed order cheque by endorsement and delivery. Crossing
affords security and protection to the holder of the cheque.
Holder in Due Course
In order to be a holder in due course, a person must satisfy the following conditions:
 He must be the holder of the instrument.
 He should have obtained the instrument for value or consideration.
 He must have obtained the negotiable instrument before maturity.
 The instrument should be complete and regular on the face of it.
 The holder should take the instrument in good faith.

82 | P a g e
Liability of the Drawee of Cheque (Section 31)
As a cheque is a bill of exchange, drawn on a specified banker, the drawee of a cheque

must always be a banker. The banker, therefore, is bound to pay the cheque of the drawer,
i.e., customer, if the following conditions are satisfied:
 The banker has sufficient funds to the credit of customer’s account.
 The funds are properly applicable to the payment of such cheque, e.g., the funds
are not under any kind of lien etc.
 The cheque is duly required to be paid, during banking hours and on or after the
date on which it is made payable.
Presentment for Acceptance
The following are the persons to whom a bill of exchange should be presented:
 The drawee or his duly authorised agent.
 If there are many drawees, bill must be presented to all of them.
 The legal representatives of the drawee if drawee is dead.
 The official receiver or assignee of insolvent drawee.
 To a drawee in case of need, if there is any. This is necessary when the original
drawee refuses to accept the bill.
The acceptor for honour. In case the bill is not accepted and is noted or protested for
non- acceptance, the bill may be accepted by the acceptor for honour. He is a person who
comes forward to accept the bill when it is dishonoured by non-acceptance.
Presentment for Payment when

Excused
Dishonour by Non-Acceptance
Section 91 provides that a bill is said to be dishonoured by non-acceptance:
(a) When the drawee does not accept it within 48 hours from the time of
presentment for acceptance.
(b) When presentment for acceptance is excused and the bill remains unaccepted.
(c) When the drawee is incompetent to contract.
(d) When the drawee is a fictitious person or after reasonable search cannot be found.
(e) Where the acceptance is a qualified one.
Notice of Dishonour Unnecessary
No notice of dishonour is necessary:

(a) When it is dispensed with or waived by the party entitled thereto, e.g., where an

83 | P a g e
endorser writes on the instrument such words as “notice of dishonour waived”,

(b) When the drawer has countermanded payment.
(c) When the party charged would not suffer damage for want of notice.
(d) When the party entitled to notice cannot after due search be found.
(e) When the omission to give notice is caused by unavoidable circumstances,

e.g., death or dangerous illness of the holder.
(f) Where the acceptor is also a drawer, e.g., where a firm draws on its branch.
(g) Where the promissory note is not negotiable. Such a note cannot be endorsed.
(h) Where the party entitled to notice promises to pay unconditionally.
Section 89 affords protection to a person who pays an altered note bill or cheque.
However, in order to be able to claim the protection, the following conditions must be
fulfilled:
(i) the alteration should not be apparent;
(ii) the payment must be made in due course; and
(iii) the payment must be by a person or banker liable to pay.
Dishonour of Cheque for Insufficiency, etc., of Funds in the Account
Provided that nothing contained in this section shall apply unless—

(a) the cheque has been presented to the bank within a period of six months from the date
on which it is drawn or within the period of its validity, whichever is earlier;
(b) the payee or the holder in due course of the cheque, as the case may be, makes a
demand for the payment of the said amount of money by giving a notice; in writing, to the
drawer of the cheque, within thirty days] of the receipt of information by him from the
bank regarding the return of the cheque as unpaid; and
(c) the drawer of such cheque fails to make the payment of the said amount of money to
the payee or, as the case may be, to the holder in due course of the cheque, within fifteen
days of the receipt of the said notice.

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IT IS NOT AN ASSURANCE OF COMING IN EXAM, BUT IT IS THE

Sr.No TOPIC Page.No

8 FOREIGN TRADE POLICY AND PROCEDURES 15 - 19

18 PREVENTION OF MONEY LAUNDERING ACT 2002 56 - 59

CA Mayur Agarwal Inspire Academy

Chapter 1: RBI ACT 1934

PAST PAPER CONCEPTS

LESSONS TO BE ROUNDED OFF

CA Mayur Agarwal Inspire Academy

HIGHLITED PART IN MODULE

Origin of the Reserve Bank of India at a glance

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Chapter 2: FEMA 1999

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LESSONS TO BE ROUNDED OFF

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Chapter 3: FEMA CURRENT & CAPITAL ACCOUNT

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CA Mayur Agarwal Inspire Academy

Prohibition on drawal of foreign exchange for certain transactions

CA Mayur Agarwal Inspire Academy

Chapter 4: FEMA – FOREIGN DIRECT INVESTMENT IN INDIA

PAST PAPER CONCEPTS

LESSONS TO BE ROUNDED OFF

 “FDI” or “Foreign Direct Investment” means investment through equity

CA Mayur Agarwal Inspire Academy

HIGHLITED PART IN MODULE

CA Mayur Agarwal Inspire Academy

CA Mayur Agarwal Inspire Academy

Chapter 5: FEMA DIRECT INVESTMENT OUTSIDE INDIA

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CA Mayur Agarwal Inspire Academy

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Chapter 7: FOREIGN CONTRIBUTION (REGULATION) ACT, 2010

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LESSONS TO BE ROUNDED OFF

CA Mayur Agarwal Inspire Academy

person or class of persons, not specified in it to obtain prior permission of the

HIGHLITED PART IN MODULE

Candidate for election; Correspondent, columnist, cartoonist, editor, owner, printer or

Member of any legislature; Political party or office bearer thereof; Organization of a

Who can receive foreign contribution?

It must not be prohibited under Section 3 of FCRA, 2010.

What is foreign hospitality?

CA Mayur Agarwal Inspire Academy

CA Mayur Agarwal Inspire Academy

Chapter 8: FOREIGN TRADE POLICY & PROCEDURES

PAST PAPER CONCEPTS

LESSONS TO BE ROUNDED OFF

CA Mayur Agarwal Inspire Academy

HIGHLITED PART IN MODULE

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Quality Complaints/ Trade Disputes