With a view to revive investor sentiment, Union law ministry has written to the Law Commission asking it to suggest ways to ensure that
business disputes are treated as such and not as criminal ones, as well as to examine whether companies can be given clearances on the basis of "self-certification".
In a letter to the Law Commission a day after Prime Minister Narendra Modi held a review of his ministry, law minister Ravishankar Prasad has highlighted what he termed the trend of commercial disputes being camouflaged as criminal disputes and being taken to magistrates with the risk of penal consequences coming in play. "While crimes ought to be prosecuted, we cannot allow a situation where business rivalries are sought to be settled by passing them off as crimes," said a source in the law ministry to explain the context of Prasad's letter to Justice (retd) A P Shah.
The concern follows the arrest warrant a Ghaziabad court issued against the global chief of
Samsung on the basis of a complaint filed by one of the vendors of the Korean giant.
