New arbitration norms approved by Union Cabinet
Q. As per the new arbitration norms, what percent of amounts against margin free guarantee will be released in cases where arbitral awards have been given yet contested?
- Published on 01 Sep 16
a. 70 percent
b. 75 percent
c. 80 percent
d. 85 percent
ANSWER: 75 percent
To get stalled construction projects moving, Indian cabinet has approved new arbitration norms resulting in quicker resolutions for companies.
- As per the fresh norms, government of India will release 75 percent of amounts against margin free guarantees in cases where arbitral awards have been given yet contested
- Amount released will be used by contractors to complete projects or pay off debts
- RBI and Department of Financial Services will develop a policy to deal with stressed assets in the realty sector
- Conciliation board has also been suggested by all new construction projects
- Government also approved the dissolution of the Central Inland Water Transport Corp as part of the move to close down irretrievable cases
- Voluntary retirement scheme was implemented for this corp in 2015; it was incorporated in February 1967
- Cabinet also approved radical changes in the FDI regime that sought to increase FDI to 100 percent in defence and liberalised the policy for several other sectors