A New Liberal Dimension By Judiciary To "RBI Restrictions On Exit At An Assured Return"?

In yet another investor friendly move, the Delhi High Court in the case of Cruz City 1 Mauritius Holdings v. Unitech Limited¹, upheld the enforcement of foreign arbitral award in India notwithstanding the issues of contravention of FEMA restrictions, inter alia, pertaining to enforceability of put option and exit at assured returns being raised as defences against such enforcement. Although the judgement is primarily in the context of issue of setting aside or enforcement of foreign awards, but it fairly touches upon the critical issues of judicial treatment of restrictions imposed by Reserve Bank of India (RBI) on foreign investors.

RBI Restrictions on Exit at an "Assured Return": A Glance