Law minister M Veerappa Moily said he is working on establishing special courts for economic offences to expedite such cases.
In an exclusive interaction with FE, the minister, who has begun the legwork for a series of legal reforms, said he would also move the Union Cabinet to get clearance for ?a legislative stimulus for industry? by setting up special courts for high-value commercial disputes.
The special courts for trying economic offences would be in line with the suggestions of the Securities & Exchange Board of India (Sebi). Burdened by the hundreds of market-related cases in various courts and tribunals, Sebi has long been demanding special courts to try economic offences.
Maharashtra had made a beginning in this direction when its Cabinet decided, in December 2004, to transfer nearly 500 cases in which Sebi had begun prosecution proceedings to a special court of the rank of city civil court in Mumbai. Earlier this month, industry minister Vilasrao Deshmukh said the special courts for economic offences would be based on the Sebi recommendations.
The contours of the commercial courts have largely been drawn by the law ministry, and draft Bill on the same is ready.
The commercial courts would deal with high-value cases exceeding Rs 2 crore, and would be introduced as a specially constituted bench in all the high courts. The immediate plan is to set up such special fast-track courts in phases.
The draft Bill to the effect will be taken to the Cabinet in coming weeks for introduction in the winter session of Parliament.
?All those cases that have blocked up thousands of crores of rupees will be resolved ? industry will gain as well as the government through taxes.
That should help make India the most attractive destination for foreign investors as all the hurdles in the judicial system would be cleared and very quick justice will be delivered,? Moily said, terming the move as a ?legislative stimulus? for the economy.
Earlier this month, addressing an Assocham seminar, Moily said the high value commercial courts will quickly resolve disputes and, thus, facilitate the smooth inflow of foreign direct investments in India in infrastructure sectors like power, telecom and ports.
Moily said the proposed courts would deliver judgment in a time-bound manner so that foreign investors do not encounter any delay in putting in their surpluses in India.
All matters relating to foreign investments that are subjected to disputes and misunderstanding between foreign investors and their domestic counter parts can be referred to such commercial courts, the minister had said.
Moily had said disputes relating to FDIs would not be allowed to be referred to lower courts after a chain of such courts is established.
The law ministry is holding a national consultation in October to flesh out a holistic legal reforms roadmap. Immediately on the anvil are amendments to the Arbitration and Conciliation Act of 1996.
?As far as arbitration is concerned, our country is not at all a favoured destination ? Paris is no.1, Singapore no.2 and Hong Kong no.3. My ambition is to make India, in the course of four to five years, the number one destination for arbitration matters,? the law minister said.
?The World Bank report on doing business around the world says India is a very difficult place to do business. I don?t entirely agree with the methodology adopted by the Bank, but at the same time, we are seriously addressing their concerns,? Moily said. As per the Bank?s latest report, India has slid to 133rd position on ease of doing business.