Cabinet approved revised Model Text for Indian BIT
The cabinet has cleared the revised Model Text for the Indian Bilateral Investment Treaty, which seeks to plug loopholes in earlier agreements ensuring that India does not get dragged into international arbitration on any issue settled by a judicial authority.
The template will be used for renegotiation existing agreements and future ones the country will enter into. The revised text provides for a refined Investor State Dispute Settlement (ISDS) that requires that foreign investor exhaust local remedies before commencing international arbitration.
As many as 17 companies or individuals including Vodafone International Holdings BV, Deutsche Telekom, Germany, Sistema of Russia, Children’s Investment Fund and TCI Cyprus Holdings served arbitration notices to India under various bilateral investment protection agreements after their investments ran into trouble in India or they faced adverse policy action. Read More