Wednesday 11 June 2014

Aadhaar Must Be Scrapped Immediately Opines Praveen Dalal

Some believe that an Aadhaar card is a useful identification document while others abhor it. Whatever the case may be but the Aadhaar project was never implemented in a legal and constitutional manner. From the very inception, Aadhaar project was an illegal and unconstitutional project. However, Indian government was well committed to continue with this project despite many protests and warnings.

One of the early, stern and incessant opposers of the Aadhaar project is Praveen Dalal who was the first one to demand for scrapping of Aadhaar project. Dalal claimed that the UIDAI must not use public funds till provisions regarding the same are incorporated in the law to be formulated by Parliament of India. He also maintained that Aadhaar project must be scrapped till a constitutional law supporting the project is in place as it is a fraud against the constitution.

Surprisingly our political parties did not find it offensive and they kept mum on this issue. This helped the Congress government to continue with the illegal and unconstitutional Aadhar project.

According to Dalal, “The Aadhaar Project is the most “Obnoxious” and “Evil” Project that Indian Government has been pursuing till now. In my personal opinion, the very foundation of Aadhaar Project is based upon “Lies and Deception” and this Project should have been “Scrapped” long before. However, the previous Government not only deliberately kept this “Illegal and Unconstitutional Project” alive but also wasted crore of “Hard Earned Public Money” on a Project that is clearly Illegal and Unconstitutional. Narendra Modi “Must Scrap Aadhaar Project” as well along with the Cabinet Committee on UIDAI, recommends Dalal.

Fortunately, the Constitutional Validity of Aadhaar Project has been questioned in the High Courts and Supreme Court of India. The Supreme Court has even held that Aadhaar Card/Number cannot be made mandatory for availing public services in India. The Supreme Court has also prohibited UIDAI from sharing biometric data with Indian Government Agencies without data owner’s consent. Even a Parliamentary Committed rejected the proposed National Identification Authority of India Bill 2010 finding it “Inadequate and Unsuitable”, informs Dalal.

It is high time for Modi government to scrap Aadhaar project as much public resources and money have already been wasted upon this useless project.

Monday 31 March 2014

Relevant Notifications Under The New Company Law Of India

The company law of India has been rejuvenated and it has brought many far reaching and significant changes in the previous regime. The regulatory compliances under the new law have become totally different and companies have to tackle the same effectively and in a timely manner. These compliance requirements have raised many techno legal and cyber obligations before Indian corporates.

However, as the new regime has been notified recently there are very few companies in India that have been complying with these requirements. Many of the companies are not even aware of such notifications. Asia’s best techno legal ICT and corporate law firm Perry4Law has provided a list of corporate regulatory notifications that can be really handy for all corporate stakeholders. Corporate stakeholders would find these notifications by Indian government worth considering in this regard:

(2) MCA Notification Dated 26-03-2014 (PDF) Regarding 183 Sections of Indian Companies Act 2013

(19) Nidhi Rules, 2014 (PDF)

This list would be updated from time to time by Perry4Law. Please bookmark this page so that you can have updated information about Indian Companies Act, 2013 and Rules/Notifications made thereunder form time to time.

Wednesday 1 January 2014

The Indian Bitcoins Saga

Bitcoins emerged as a valuable investment in India in the year 2013. However, the legality of Bitcoins in India was always in doubts. Nevertheless the e-commerce entrepreneurs in India kept on investing and dealing in Bitcoins. They also forget to comply with Indian law, including the cyber law of India.

For instance, the IT Act 2000 prescribes cyber law due diligence in India and the Internet intermediary liability in India. These cyber laws due diligence and Internet Intermediary requirements squarely apply to use of Bitcoins in India. Further, money laundering, foreign exchange and security dealing laws also apply to Bitcoins dealings and trading in India.

Meanwhile, China, France, Thailand, etc have either regulated the use of Bitcoins or they have completely banned them in their jurisdictions. But the Reserve Bank of India (RBI) and Indian government kept on sleeping over the issue. As a result the Bitcoins frauds and crimes kept on increasing in India.

As the pressure mounted, the RBI cautioned users of virtual currencies against various risks including legal risks. Soon after the cautious advisory, the enforcement directorate (ED) swung into action and raided two Bitcoins websites and their offices. ED believes that Bitcoins money can be used for hawala transactions and funding terror operations and this seems to be a legally plausible explanation as well.

Actually, the Bitcoin website owners have themselves put into trouble as they simply assumed that there are no legal compliances that are required to be fulfilled. It is well established that e-commerce compliances in India are required to be fulfilled.

As on date the Bitcoins websites in India are under regulatory scanner and are vulnerable to all sorts of legal actions. In fact, Seven Digital Cash LLP is already facing legal risks for dealing in Bitcoins in India.

The cyber law trends of India 2013 by ICT law firm Perry4Law has cautioned that Bitcoins websites may further face legal actions if they fail to comply with Indian laws in the year 2014. We hope that the Bitcoins saga would not end up in the prosecution of Bitcoins entrepreneurs in India.