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No Defence Under FEMA Against Foreign Arbitral Awards Enforcing Put Options

In Cruz City 1 Mauritius Holdings v. Unitech Limited, Justice Vibhu Bakhru held that foreign arbitral award can be enforced in India pertaining to put options, exit at assured return, and guarantee arrangements and the provisions of FEMA and related regulations cannot be claimed as defense by Indian parties.

In this matter, an investor Cruz City (Mauritius Company) sought to enforce a foreign arbitral award against Unitech (an Indian company) and its wholly owned subsidiary Burley Holdings Ltd.. (a Mauritius company).

Article referred: http://www.livelaw.in/no-defense-can-claimed-fema-enforcement-foreign-arbitral-awards-enforcing-put-options-delhi-hc/

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