General Updates
Food antimicrobials and antibiotic restrictions are tightened
Food Safety and Standards Authority of India ("FSSAI") has notified Food Safety and Standards (Contaminants, toxins and Residues) First Amendment Regulations, 2024 – which will come into effect from 1 April 2025. The amendment include revision in the list of antimicrobials and other veterinary drugs which are prohibited for use at any stage of production of milk and milk products, meat and meat products, poultry and eggs & aquaculture products; prohibition on the use of antibiotics during honey production; and changes in limits of chemicals for wheat, wheat bran, rye, barley and coffee.
Timelines for product shelf life provided
FSSAI has ordered a minimum shelf life of 30% (thirty) or at least 45 (forty-five) days before expiry date prior to delivering products to customers, to e-commerce and quick commerce entities.
Customs Cargo Service Providers ("CCSPs") norms relaxed
Central Board of Indirect Taxes and Customs has made some relaxations for CCSPs. Key highlights include reduction in the number of days from 10 (ten) to 5 (five) for insurance of storage goods and CCSPS that meet international operational standards (AEO) will no longer be required to undergo renewal process of their licenses for handling goods under relevant provisions of the Handling of Cargo in Customs Areas Regulations, 2009.
Electric Vehicle ("EV") Policy extended by Government of Delhi
The Delhi Government has extended the EV Policy (including revisions in subsidiaries and tax exemptions) till 31 March 2025. This will be applicable on all e-cycles, e-rickshaws, e-carts, two-wheelers, and light commercial vehicles bought after 1 January 2024.
E-Daakhil portal launched
The Department of Consumer Affairs has launched the E-Daakhil portal across all states and union territories in India. This portal is designed to streamline the consumer grievance redressal process by allowing consumers to file complaints; track status and manage complaints and pay applicable fees.
Telecommunications (Telecom Cyber Security) Rules, 2024 ("Rules") notified
The Department of Telecommunications has notified Rules. Key highlights include creation of online portal; providing access of data to Central Government; Reporting of cybersecurity incidents within 6 (six) hours; appointment of Chief Telecommunications Security Officer; conducting security audits and Telecom Cybersecurity Policy.
Requirement of compulsory registration dispensed with for certain products
The Directorate General of Foreign Trade has removed the requirement of compulsory registration of certain electronic integrated circuits - processors and controllers & memories and amplifiers with immediate effect under the Chip Imports Monitoring System.
Corporate Law Updates
Mandatory onboarding on Trade Receivables Discounting System ("TReDS") platform
As per a recent notification, the Ministry of Micro, Small and Medium Enterprises ("MSMEs") mandates all companies registered under the Companies Act, 2013 with a turnover of more than INR 250 crore (US$ 29,564,000 approximately) and all Central Public Sector Enterprises to get themselves on boarded on the TReDS platform, set up as per the notification of the Reserve Bank of India. The onboarding process on the TReDS platform shall be completed by 31 March 2025.
The TReDS platform intends to facilitate the settlement of invoices raised by MSMEs on their buyers within the statutory timeline of 45 (forty-five) days from the date of acceptance or deemed acceptance of goods or services as per the provisions of Micro, Small and Medium Enterprises Development Act, 2006.
Monetary limits fixed for waiver of interest
The Central Board of Direct Taxes ("CBDT") has given tax officials the authority to waive or decrease the interest payable by assesses on tax payments, subject to certain criteria.
Deadline to file returns for international transactions extended
The CBDT has extended the deadline to file returns for international transactions as per relevant provisions of Income Tax Act, 1961 - up to 15 December 2024.
Labour Law Updates
Sexual harassment cases cannot be quashed on grounds of compromise
The Supreme Court of India has set aside Rajasthan High Court's decision to quash a sexual harassment compliant based on compromise between the associated parties.
Reminder Letter issued for submission of Annual Report
The relevant authority appointed under Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 ("POSH Act") in Gurugram has informed all Government and NonGovernment Organization to submit their annual report by 28 February of every year about cases of harassment at the workplace to comply with relevant provisions of POSH Act. Further, a penalty of INR 50,000 (US$ 650 approximately) will be levied for non-filing of annual report in a timely manner.
Directions for Universal Account Number ("UAN") activation for employees through Aadhaar
The Ministry of Labour & Employment has directed Employee Provident Fund Organisation ("EPFO") to ensure UAN Activation by employers for employees through Aadhar based One Time Password ("OTP") verification. This will ensure that the benefits from Employment Linked Incentive ("ELI") Scheme are received to both Employers and Employees.
Multiple initiative taken by EPFO approved
The Central Board of Trustees, EPFO has approved various initiatives such as increasing auto claim settlement limit to Rs. 1 Lac (US$ 1300 approximately) and extending the same to advances for housing, marriage and education; upgrading of both hardware and software for simplifying claim settlement process; payment of interest till date of settlement as opposed to previous timeline of 24th of that particular month and Employees Deposit Linked Insurance Scheme ("EDLI") benefits with retrospective effect from 28 April 2024.
Menstrual Leave Policy in Karnataka
The Labour Department of Karnataka has sought feedback from women's organisations, trade unions and the general public on their proposed menstrual leave policy of 6 (six) days.
Supervisor is not workman
The Supreme Court of India has held that an employee who is supervising the work of two juniors working under him cannot be termed as workman as per relevant provisions of the Industrial Disputes Act, 1947.
Intellectual Property Updates
Applicant does not need to serve the counterstatement in trademark opposition proceedings
In one of the cases, the Delhi High Court ("DHC") had earlier stated that it is the duty of the Applicant to serve counterstatements in trademark opposition proceedings. Such an observation has now been corrected by the court, and the position now stands reversed. By way of a review petition filed before the court, an important clarification has been issued, which confirms that it is the statutory duty of the Registrar of Trade Marks, to serve counterstatements, and not Applicants. The official service of the counterstatement is used for calculating relevant deadlines in the evidence stages of opposition proceedings. This is a welcome clarification from the court, and clears any ambiguity created by the earlier order.
National patent filings in India surpass international filings to India, for the first time
The World Intellectual Property Organization ("WIPO") Indicators Re-port finds that India, for the first time, has more patent applications filed from within India, rather than designated from abroad. In 2013, there were less than 25% (twenty-five) of patent applications originating from within India. However, in 2023, this number rose to 55% (fifty-five), indicating that for the first time ever, Indian nationals and Indian companies are filing more patents than foreign entities. This indicates a significant change in patent practices in India, with a sign of higher percentages of patent work being originated in India and maybe even designating abroad to other countries. Furthermore, India also continues to record double digit growth in patent filings i.e. 15% (fifteen), indicating a growth in filings every year over the past decade.
Case Laws
Exemption of Payment of stamp duty in certain cases of merger and amalgamation
The Delhi High Court held that in cases of merger and amalgamation of wholly owned subsidiaries of a common parent company, there is no need to pay stamp duty. The transfer of shares was in the dematerialized form which has been specifically exempted under relevant provisions of the Indian Stamp Act, 1899 (Act).
Clarification issued regarding Seat and Venue in Arbitration Proceedings
The Supreme Court ("SC") has clarified that post determination of seat of arbitration by the parties, the relevant courts of that jurisdiction will have power to regulate arbitration proceedings. When in an arbitration agreement there is an explicit designation of a place of arbitration, reflecting the arbitral proceedings to such place, and there is no indication to the contrary, such place would be the 'seat' of arbitration and even if it is mentioned as 'venue'.
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