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Modi government moves to ease business rules, weed out archaic laws

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  • Modi government moves to ease business rules, weed out archaic laws

    NEW DELHI: With a view to revive investor sentiment, Union law ministry has written to the Law Commission asking it to suggest ways to ensure that business disputes are treated as such and not as criminal ones, as well as to examine whether companies can be given clearances on the basis of "self-certification".

    In a letter to the Law Commission a day after Prime Minister Narendra Modi held a review of his ministry, law minister Ravishankar Prasad has highlighted what he termed the trend of commercial disputes being camouflaged as criminal disputes and being taken to magistrates with the risk of penal consequences coming in play. "While crimes ought to be prosecuted, we cannot allow a situation where business rivalries are sought to be settled by passing them off as crimes," said a source in the law ministry to explain the context of Prasad's letter to Justice (retd) A P Shah.

    The concern follows the arrest warrant a Ghaziabad court issued against the global chief of Samsung on the basis of a complaint filed by one of the vendors of the Korean giant.

    Sources also said that Prasad asked the Law Commission to explore that the desirability of giving companies certain clearances on the basis of "self-certification" is not in the breach of the relevant norms. "This is to smoothen the process as the task of requiring all the relevant clearances can be cumbersome and time-consuming and keep the projects from getting off the ground," said a source, emphasizing that the companies will be liable for punishment if they are found to have misrepresented facts to secure clearances.

    Prasad has also asked Shah to prepare a list of archaic laws and suggest ways to weed them out. "As PM has emphasized, we are saddled with laws which we don't need. We have to get rid of them," said an official in the law ministry.

    The law minister also asked Justice Shah for a framework to encourage arbitration as dispute-resolution mechanism, and to make suggestions on how India can become an international hub of arbitration.
    TimesofIndia
    Politicians are elected to serve...far too many don't see it that way - Albany Rifles! || Loyalty to country always. Loyalty to government, when it deserves it - Mark Twain! || I am a far left millennial!

  • #2
    Ravi Shankar steps in to check companies harassment in Court, urges Law Commission to set higher forum

    I hope the Government bring in the much needed changes - GST & DTC.
    Politicians are elected to serve...far too many don't see it that way - Albany Rifles! || Loyalty to country always. Loyalty to government, when it deserves it - Mark Twain! || I am a far left millennial!

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    • #3
      It is about time that we bump these laws in the bin.
      India has some of the most business hostile laws and regulations.

      Cheers!...on the rocks!!

      Comment


      • #4
        The battle is about to begin.

        Govt to face opposition to labour law reforms | Jun 14 | DH

        The changes which the Rajasthan government has proposed include doing away with the provision of government permission to retrenchment of more than 100 workers. The amendment will allow retrenchment of up to 300 workers without any government permission.

        The proposal prohibits raising disputes within three years time and registration of a representative trade union will require 30 per cent of workers as members, not 15 per cent, which the current law provides for.

        The state government has proposed amendments in the Contract Labour Act as well. It seeks to change the applicability of the law to companies with 50 workers from 20.

        The applicability of the Factories Act is also being amended. Presently, it applies to the premises with 10 workers with power and 20 without power. The amendment will make it applicable to premises with 40 workers.
        Modi has not to face only Left trade unions but also the trade unions like Bhartiya Majdoor Sangh (BMS), an affiliate of Rashtriya Swayamsevak Sangh.

        We have written to the prime minister that we will not allow it to happen. We will go to any extent,” BMS general secretary Brajesh Upadhyay told Deccan Herald.

        “In the name of labour reforms, they just want to implement hire and fire policy. How can it be permitted? It is misleading to hold labourers responsible for impeding economic growth. We have been asking them if any law is leading to such a situation, we are ready to debate on that. In fact that is not the case,” Upadhyay said.

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        • #5
          I am sitting here wishfully thinking that maybe just maybe the new government will bring in some laws to protect us IT guys from being exploited. Something atleast.

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          • #6
            You are free to dump your employer whenever you want.

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            • #7
              Originally posted by Double Edge View Post
              You are free to dump your employer whenever you want.
              And get employed by another company with the same rules and attitude ?

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              • #8
                Look, IT is an export sector industy, does not come under the archaic labour laws of other industries. Hire & fire, free to grow as the market demands or contract.

                What is the result ? we get to be competitive on a world level. Compare with other industries that can only dream of the attention IT attracts whilst hiring ten times more people. Which have all sorts of protections to glorify the worker and produce products that even Indians, given a choice would avoid.

                If you want to hold on to our advantage in the IT sector, say NO! to unions.
                Last edited by Double Edge; 25 Jun 14,, 14:30.

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                • #9
                  Originally posted by Double Edge View Post
                  Look, IT is an export sector industy, does not come under the archaic labour laws of other industries. Hire & fire, free to grow as the market demands or contract.

                  What is the result ? we get to be competitive on a world level. Compare with other industries that can only dream of the attention IT attracts whilst hiring ten times more people. Which have all sorts of protections to glorify the worker and produce products that even Indians, given a choice would avoid.

                  If you want to hold on to our advantage in the IT sector, say NO! to unions.
                  Who said anything about Union's, the reason why some states couldn't grow was because of the Union's like KL and WB and I certainly doesnt want one though I agree on the other points of yours though. Exploitation of laws happens in all sectors in India and at least IT is very organized than any other sector.

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                  • #10
                    Raje to dump archaic labour laws to spur investments, jobs | DH | Jun 25

                    Still three to four months wait to become law.

                    “What was relevant in 1947 or 1958 is certainly not relevant today. Needs, priorities and means... all have changed. How can you handle challenges of 2020 with the laws framed in 1947? The new amendments are in the interests of both employees and employers and obviously the state,” said Sandeep Jain of Vertex soft plus, a software firm. Officials of labour department, on condition of anonymity say that the present reforms are industry and investor friendly. Once they are cleared in the state Assembly, they will be sent to the President of India for approval. The entire process may take another three-four months time.
                    Show of force

                    Meanwhile, many state level industrial and trade unions have strongly opposed the proposed amendments and termed them as opposed to the interests of the workers. They also blame the Raje government of not consulting them before taking such ‘anti-labourer decisions’ in the state. “Capital growth cannot take place unless the interests of workers are taken care of. The chief minister has been working under the influence of capitalists which is evident from such anti employee amendments,” said Rah Bihari Sharma, the state general secretary of Bhartiya Majdoor Sangh.

                    Leaders of trade unions said that an all India convention has been called in Jaipur in the month of July to decide on further course of action. “At the convention all trade unions will jointly decide on how to deal with such errant decisions. If necessary we will hit the roads and hold protests,” said Sharma. They claim that the focus of the government is to scrap the trade unions which is why the exemption limit has been raised to 300 employees. After these amendments only 50-60 industries will come under the labour laws. In the rest of the units, there will be no one to take care of the interest of the labourers, said Jagdish Chand Srimali, the state convenor, All India Trade Union Congress.
                    Basis
                    Immediately after clearing the proposed amendments in the cabinet Raje said, “I had promised 15 lakh jobs and this is one area which desperately needs to be opened up. I don’t have a choice. it’s a move to create a healthy atmosphere for job creation.”According to industry experts, without amending the labour laws state government could never have been in the position to attract the massive amount of investment required for infrastructure and industrial development that would come because of the Delhi- Mumbai golden quadrilateral highway project, the proposed Dedicated Freight Corridor (DFC) and the Delhi-Mumbai industrial corridor. Besides, a fresh investment of over Rs 32,000 crore is also reportedly in the offing which include new industrial units or expansion by existing giants.

                    “The amendments in labour laws will not only lead to creation of new job opportunities but will definitely lead to less of Inspector raj. Earlier, the government inspectors from various departments would keep troubling the industrialists now and then over minor issues. At least now we can focus on our work,” said SN Kabra, president of Sitapura industrial association. Now that relaxations have been given, the new investment will certainly go up leading to generation of new employment opportunities, he added.
                    Looks like these reforms have a chance of succeeding.

                    Industry experts believe that the protests by trade and industrial unions would be minimal considering that flexible labour reforms would certainly ensure fair compensation to employees and long-term flow of capital to entrepreneurs and more opportunity of generating employment.

                    “Today an entrepreneur has to take permission for hiring more than 100 workerss. Now that the limit has been increased to 300, he can increase the production with the same resources. On the other hand, the sick units will get relief with no restrictions on hiring or retrenching upto 300 workers without any government interference,” said Nitin Gupta, director CII, Jaipur. According to him, more than 1,800 cases of labour dispute are pending in various forums.

                    The new reforms will not only clear the pendency but it will also be a big relief to unprofitable units who want to close down.

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                    • #11
                      Originally posted by commander View Post
                      I am sitting here wishfully thinking that maybe just maybe the new government will bring in some laws to protect us IT guys from being exploited. Something atleast.
                      Amen brother.
                      Every single company treats its employees on par with the toilet paper in the loos.
                      Tear, wipe and flush.
                      For Gallifrey! For Victory! For the end of time itself!!

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                      • #12
                        Originally posted by commander View Post
                        I am sitting here wishfully thinking that maybe just maybe the new government will bring in some laws to protect us IT guys from being exploited. Something atleast.
                        What's your story mate?
                        Politicians are elected to serve...far too many don't see it that way - Albany Rifles! || Loyalty to country always. Loyalty to government, when it deserves it - Mark Twain! || I am a far left millennial!

                        Comment


                        • #13
                          The need of the hour is to stop assuming companies are criminals when making a law, with every administrative and legal side of business I have seen that the laws are drafted assuming every company is a evil and greedy monster that needs to be kept on a short leash to keep in control.

                          As for the rest of it service tax now needs no payment of bribe (almost zero for a regular service tax provider), sales tax and excise tax is filled with bribes, the GoI should take the clue

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                          • #14
                            Originally posted by kuku View Post
                            The need of the hour is to stop assuming companies are criminals when making a law, with every administrative and legal side of business I have seen that the laws are drafted assuming every company is a evil and greedy monster that needs to be kept on a short leash to keep in control.

                            As for the rest of it service tax now needs no payment of bribe (almost zero for a regular service tax provider), sales tax and excise tax is filled with bribes, the GoI should take the clue
                            With the notable exception of the Tata Group, this pretty much describes every big business house in India.
                            You don't become the big boy on the block without breaking a few heads.
                            For Gallifrey! For Victory! For the end of time itself!!

                            Comment


                            • #15
                              Originally posted by bolo121 View Post
                              With the notable exception of the Tata Group, this pretty much describes every big business house in India.
                              You don't become the big boy on the block without breaking a few heads.
                              Bolo,

                              No point in viewing company's as evil entities. In Sir Humphrey's words, they are not moral or immoral; they are amoral. If there is a way to suck profit, they will do it. Of course, many India promoters are also personally corrupt, which is to say that they siphon money off their publicly listed companies.

                              But my main point is this, the more rules your place in the way of companies, the less likely it is that entrepreneurs will invest. Entrepreneurs will also need stability in the regulatory regime, instead of nightmares like the retrospective tax regime.

                              Bottom line, if you do not make an investor friendly scenario, you can good bye to growth prospects.
                              "Is God willing to prevent evil, but not able? Then he is not omnipotent. Is he able, but not willing? Then he is malevolent. Is he both able and willing? Then whence cometh evil? Is he neither able nor willing? Then why call him God?" ~ Epicurus

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