LEGAL UPDATES FOR THE MONTH OF MARCH 2024

1. The Union Cabinet Approves INR 75, 000 crore for Rooftop Solar Subsidy Scheme
https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2010133

The Union Cabinet on 13th Febuary,2024 has approved a rooftop solar scheme under
-“PM-Surya Ghar Muft Bijli Yojana , for an outlay of INR 75,021 crore”-with the
objective to provide up to INR 78,000 subsidy for the installation of solar plants and 300
units of free power for one crore households. The goal is to deliver sustainable energy
solutions to every home and enable the households to save electricity bills as well earn
additional income through the sale of surplus power to DISCOMs.. The scheme can be
availed by applying on an integrated. National Portal wherein the households would be
allowed to select a suitable vendor for installing rooftop solar.

2. The Supreme Court of India (“SC”): Courts Not Authorized to Re-write Contracts
Re-write Contracts or Establish New Contracts between the Parties
https://www.livelaw.in/supreme-court/courts-cant-rewrite-contract-have-to-rely-on-tcs-
agreed-by-parties-while-adjudicating-disputes-supreme-court-251101

The SC in its recent ruling, asserted that courts shall not be authorized to rewrite or
establish new contracts between parties and they must adhere strictly to the terms and
conditions agreed upon by the parties when adjudicating disputes. In the case in hand, the
contract between a seller and buyer explicitly stipulated that buyer would have the option
to terminate the contract and claim a refund of the consideration paid if the seller failed to
provide an ‘occupation certificate’ before expiration of the one-year grace period. Despite
the seller’s failure to furnish an ‘occupation certificate’, the National Consumer Dispute
Redressal Commission (“NCDRC”) rejected the buyer’s entitlement to terminate the
contract and receive a refund of the consideration amount already paid. The SC thus set
aside NCDRC ruling and it is not open for the courts to rewrite or make a new contract by
giving a new interpretation to the contract.

3. The Competition Commission of India(“CCI”) Prescribes Monetary Penalty on

Global Turnover of Companies Engaged in Anti-Competitive Conduct

https://pib.gov.in/PressReleasePage.aspx?PRID=2012824
 CCI, on 6th March,2024. has notified the Competition Commission of India (Determination of
Monetary Penalty) Guidelines 2024, with the objective to combat violations of competition
law and anti-trust activities committed by multinational firms by prescribing monetary
penalty on the global turnover of such firms, in cases where relevant turnover cannot be
determined. Under the new provision, the CCI can levy a penalty of up to 10% of a
company's global turnover for the abuse of dominant position. notification aims at
encouraging companies and individuals to opt for commitments and settlements in order to
avoid paying exuberant amount as penalty and establish a free and fair competition in India.

4. The Ministry of Corporate Affairs (“MCA”) Raises Asset and Turnover Thresholds
for Mergers and Acquisitions(“M&A”) Requiring CCI Approval

https://pib.gov.in/PressReleasePage.aspx?PRID=2012821

MCA, on 8th March, 2024, has notified increase in the asset and turnover thresholds for
M&A of firms requiring CCI’s approval. As per the notification, the threshold value on
the basis of wholesale price index and exchange rate of rupee has been increased by
150%, with the aim to increase the ease of doing business. Further, two domestic
companies pursuing M&A plans will now have to seek the CCI's clearance if their
combined assets and annual turnover in India exceed INR 2,500 crore and INR 7,500
crore, respectively, as opposed to INR 2,000 crore and INR 6,000 crore earlier. Also, if
the target of an acquisition has assets of less than INR 450 crore or annual turnover of
under INR 1,250 crore, as opposed to INR 350 crore and INR 1,000 crore, earlier, the
deal would be exempted from the CCI approval.

[5.] Department of Pharmaceuticals (“DoP”) Announces a Revamped Pharmaceuticals

Technology Upgradation Assistance Scheme (“RPTUAS”) scheme to Uplift
Pharmaceutical Technology up to the Global Standards

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2013379

To ensure manufacturing of quality pharmaceutical products, DoP, on 11th March, 2024, has
approved the RPTUAS scheme with the primary objective to ensure manufacturing of good
quality pharmaceutical products, thereby ensuring its alignment with global standards.. The
scheme which only covered Micro, Small and Medium Enterprises earlier has now been
extended to pharmaceutical units with a turnover of less than INR 500 crores for the last three
years. The revised guidelines aim to support the pharmaceutical industry's upgradation to the
Revised Schedule M (Good Manufacturing Practices [“GMP”]) of the Drugs and Cosmetics
Rule, 1945 and World Health Organization-GMP standards. It aims at providing financial
assistance and incentives up to INR 1 crore to pharacutical companies for adapting to new
technological and quality advancements which are in coherence with revised Schedule-M of
the Drugs and Cosmetics Rule and WHO-GMP standards. It further enables the benefits to be
 combined with state government led programmes for maximized support, and ensures a
proficient verification mechanism resulting into more accountability and better allocation of
resources. However, MSMEs achieving high-quality manufacturing standards are preferred
under the scheme.

[6.] NHAI Issues Advisory to Paytm FASTag Users to Switch to FASTags From Other
Banks In Order to Avoid Penalties
https://pib.gov.in/PressReleasePage.aspx?PRID=2014106

In compliance with the earlier RBI guidelines that imposed a restriction on Paytm Payments
Bank, the National Highways Authority of India has issued an advisory on 13 th March 2024,
for the users of Paytm FASTag to procure a FASTag which has been issued by another bank
as the users will be unable to avail the services post 15 th March and Paytm FASTag will no
longer be operational. In case of non-compliance, users will have to bear penalties while
commuting on National Highways. The existing balance can be used to pay toll beyond
stipulated date.

1. SEBI Approves Relaxations for Foreign Portfolio Investors to Facilitate Ease of Doing
Business
https://www.sebi.gov.in/legal/circulars/mar-2024/amendment-to-circular-for-mandating-
additional-disclosures-by-fpis-that-fulfil-certain-objective-criteria_82418.html
Securities Exchange Board of India(“SEBI”) on 15th March, 2024, approved a set of
relaxations for foreign portfolio investors, alternative investment funds and entities seeking to
raise funds through initial share sales, with the primary object of facilitating the ease of doing
business in the securities market. Further, SEBI has also approved a uniform approach for
verification of market rumours by entities that have listed their equities. Additional disclosure
requirements for FPIs having more than 50 per cent of their India equity assets under
management in a single corporate group have been exempted along with an Alternative
Investment Fund (“AIF”) has been mandated to ensure that financial regulations are not
circumvented.