Treaty retreat

With at least four companies threatening to take the government to international arbitration, it’s not surprising the government is looking for a solution. What is surprising, though, as FE reported, is the solution envisaged is India removing the arbitration clause and subjecting disputes to the jurisdiction of local courts in both countries who are party to the bilateral investment treaty (BIT)—all the four firms are looking at solutions under the BIT. Given the average length of time it takes to get past the courts, effectively this reduces the arbitration clause to virtually nothing.

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