Lately, the income tax authorities have been actively objecting to schemes of arrangement initiated under sections 391 to 394 of the Companies Act, 1956 on the ground that the schemes are intended to avoid applicable taxes. Such objections are usually raised when the scheme is presented for sanction of the High Court. This scenario has been played out last week in a decision of the Gujarat High...
Supreme Court Judgment in the Sahara Case
The Supreme Court’s judgment in the Sahara case that was rendered yesterday is available here. The court found that the two companies in the Sahara group raised monies in violation of the corporate and securities laws applicable in India, and ordered refund of subscription monies along with interest. While the two judges have delivered separate judgments, the findings of non-compliance seem...
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