Background – InduTech Zone case involves huge investments by Indu Projects Ltd Managing Director Indukuri Syam Prasad Reddy in the companies floated by YSR Congress leader Jaganmohan Reddy for the favours received from Andhra Pradesh government. Earlier this year, Enforcement Directorate (ED) had attached properties worth Rs 117.74 crore of three companies belonging to Syam Prasad Reddy.
Carissa Investments LLC, a Mauritius company had bought 49 per cent stake in InduTech Zone IT SEZ in the unified Andhra Pradesh, through foreign direct investment (FDI).
Current Development –
Carissa LLC approached the Mauritius government to take up the case for arbitration under a bilateral treaty for the protection of investments. Mauritius government alleges in its notice to India that it has been cheated and the claim would be over $50 million. The notice quotes United Nations Commission on International Trade Law Model Law on Commercial Arbitration. Mauritius government said it is a breach of bilateral investment treaty that promised protection of investments.
International Court of Justice sent a notice to India seeking appointment of an arbitrator. The Centre has called for an inter-ministerial group meeting for appointing an arbitrator.
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