Govt weighs FDI risks in reversing judicial verdict on sealing

October 25, 2006	(Be the first to rate this story!)  Loading ...
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The government is faced with concerns that a constitutional amendment to end the sealing crisis could send out a wrong message to foreign investors if it places the law suspending court-ordered municipal sealing drive for a year beyond judicial review.

With the country being billed as rule-based democracy to attract foreign direct investment, the Centre is weighing the risks of such a move could entail at a time when Indian is fast emerging as a major FDI destination.

“You have to take into account the impact of the constitutional amendment on the country’s image when there is a huge flow of FDI, an official source said.

The group of ministers is divided on the ways to tackle the sealing drive issue, with some members opposed to union Urban Development Ministry’s suggestions to place Delhi Laws (Special Provisions) Act under Schedule nine of the Constitution.

“There are arguments that any such move will send out a message that the government could come under pressure from protests over a judicial verdict aimed at setting things right.

“There are concerns that a constitutional amendment to reverse a court order could hit the country’s image as an ideal investment destination where the rule of law prevails,” the source said.

The GoM comprising Law Minister H R Bhardwaj, Delhi Chief Minister Sheila Dikshit besides Union Urban Development Minister S Jaipal Reddy and his Deputy Ajay Maken has virtually refused to intervene to stop MCD drives as it had asked protesting shop owners to instead approach the Supreme Court’s Monitoring Committee.

Source: http://www.zeenews.com

News Published Under:   Real Estate India, Delhi, Foreign Direct Investment in India |

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