AKSHAY N PATEL versus RESERVE BANK OF INDIA & ANR.
Clause 2(iii) of the 2020 MTT Guidelines, which links permissibility of merchanting trade transactions to permissibility of import/export under the prevailing Foreign Trade Policy, was a proportionate measure enacted in furtherance of a legitimate State aim (ensuring adequate domestic PPE supplies during the COVID-19 pandemic), was suitable and necessary to protect domestic health interests and foreign exchange reserves, and therefore does not violate Articles 14, 19(1)(g) or 21; the High Court judgment upholding Clause 2(iii) is affirmed.
Source excerpt
- Article 14
- Article 19(1)(g)
- Article 21
- Fema ss.10(4) and 11(1)
- Merchanting trade transactions guidelines, 2020 (clause 2(iii))
- Proportionality test