South Korea is
considering invoking provisions under the bilateral investment promotion and
protection agreement (Bipa) against India for the hit on Samsung Electronics'
investments, following a Supreme Court order asking its chairman, Lee Kun-hee,
to appear within six weeks before a Ghaziabad trial court in a pending payment
case.
This comes even as Commerce & Industry Minister Anand Sharma expressed apprehension the apex court's decision might adversely affect India's investment climate.
Sources told Business Standard the Korean embassy here had taken up the matter with the foreign ministry of that country. Currently, Korean ambassador Lee Joon-Gye is in his home country.
Under the India-South Korea Bipa, a party can drag the other to international arbitration if its investments are threatened.
Earlier this week, the Supreme Court had directed Lee Kun-hee to appear before a Ghaziabad court in a $1.4-million cheating case filed against him.
The Centre believes it is Samsung India that is "to be blamed, as it did not foresee it coming and mishandled the case", says a senior official, adding the apex court order had given an option through which an exemption could be sought from Lee's personal appearance.
The government is verifying the credentials of JCE Consultancy, complainant in the case. Initial investigations have revealed the company isn't registered with the Ministry of Corporate Affairs and doesn't have its sales tax number registered.
"The case has zero merit. The government is fully behind them. JCE Consultancy is a fraud company and is tactfully misusing the Indian judicial system," said an official directly handing the case on behalf of the Indian government.
source:business standard
This comes even as Commerce & Industry Minister Anand Sharma expressed apprehension the apex court's decision might adversely affect India's investment climate.
Sources told Business Standard the Korean embassy here had taken up the matter with the foreign ministry of that country. Currently, Korean ambassador Lee Joon-Gye is in his home country.
Under the India-South Korea Bipa, a party can drag the other to international arbitration if its investments are threatened.
Earlier this week, the Supreme Court had directed Lee Kun-hee to appear before a Ghaziabad court in a $1.4-million cheating case filed against him.
The Centre believes it is Samsung India that is "to be blamed, as it did not foresee it coming and mishandled the case", says a senior official, adding the apex court order had given an option through which an exemption could be sought from Lee's personal appearance.
The government is verifying the credentials of JCE Consultancy, complainant in the case. Initial investigations have revealed the company isn't registered with the Ministry of Corporate Affairs and doesn't have its sales tax number registered.
"The case has zero merit. The government is fully behind them. JCE Consultancy is a fraud company and is tactfully misusing the Indian judicial system," said an official directly handing the case on behalf of the Indian government.
source:business standard
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