SC or Prez may take final call on changes to Fema

A public interest litigation on this issue is pending with the Supreme Court already, on which the court on October 15 asked the central government to carry out the necessary amendments in Fema rules and get them notified by the RBI. The petitioner, ML Sharma, had alleged that the government had allowed FDI in multi-brand retail without making necessary changes in the law and that it was trying to bypass Parliament.

Attorney general GE Vahanvati had assured the top court on behalf of the government that all rules and regulations would be followed. The apex court had remarked that policy making was the domain of the government, “but the executive must hear the voice of the legislature…”

The next hearing in the Supreme Court is scheduled on January 22.

Senior BJP leader Yashwant Sinha has no doubts about how Fema amendments are carried out. “Anyone who has read Section 48 of Fema will know that for modifications in rules/regulations, the consent of both Houses of Parliament is required. Every MP has a right to make amendments or modification.”

External affairs minister Salman Khurshid doesn’t quite agree. “Fema is not being amended;

... contd.