HUBTOWN CASE – REALISTIC INTERPRETATION OF 'ASSURED RETURNS' FROM A FEMA PERSPECTIVE

Published On: 01/11/2016

Authors:

Avimukt Dar
Stuti Agarwal
The Supreme Court, in its judgment in IDBI Trusteeship Ltd. V. Hubtown Ltd.[1] on November 15, 2016, has set aside the Bombay High Court’s judgment (summarised below) regarding the validity of structured investments by foreign investors, where an assured return is guaranteed, holding a corporate guarantee for payments due to an investor, valid.