Date:26/02/2006 URL: http://www.thehindu.com/2006/02/26/stories/2006022606591000.htm

National

New legal system for transfer of foreign capital: Bhardwaj

Special Correspondent

NEW DELHI: Union Law Minister H.R. Bhardwaj on Saturday said the Government is mulling a legal system to facilitate the smooth transfer of foreign capital to the tune of over $100 billion to India for funding its infrastructure needs in the next decade.

Inaugurating an international conference on `Arbitration: The Indian Experience & Global Trends' organised by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), Mr. Bhardwaj said a 100-member judges panel would be created and a legal system evolved to ensure that no dispute arose after investment deals were inked to attract foreign capital. "If disputes still arise, they will have to be resolved through conciliation and arbitration," he said.

Category of judges

The UPA government was also planning to create a category of judges for rural India to enable litigants there to resolve disputes at their doorstep.

"The government has projected a requirement of over $100 billion worth of foreign capital to finance its future infrastructure needs. Owners of foreign capital are ready to invest their surpluses in India only if their investment is adequately protected through a sound legal system," the Law Minister said.

The Government is, hence, mulling a legal mechanism, which will ensure that foreign investors not only get high returns in India but are also assured of the safety of their investment, the Minister said.

He called upon all judges and lawyers to expedite the process of arbitration as legal disputes, which arise out of misunderstanding, could be best solved through conciliation.