G E Vahanvati, Attorney General told the Supreme Court that the Centre had notified three amendments to the Foreign Exchange Management Act (Fema) rules to enable foreign direct investment (FDI) into the multi-brand retail sector.
A notice had been issued in a public interest suit that alleged the government had allowed 51 per cent FDI into the multi-brand retail sector without framing rules and regulations and without the assent of both Houses of Parliament.
However, three amendments had been notified on October 30, enabling the government to allow FDI into the multi-brand retail sector. The changes were made to the Fema (Transfer of Security by a Person Resident Outside India) Regulations 2012.
These amendments had to be approved by both Houses of Parliament and mere assurance to the court that the amendments had been made wasn’t enough to make the process constitutional. Similar amendments to the Sebi (Securities and Exchange Board of India) Rules 1992 had also been made, but so far, these hadn’t been presented before the Houses.