#BulletinBoard – November 27, 2018 (In today’s edition, Employer has the right to consider the antecedents of the employee even after disclosure of pending criminal case and more)

Employer will be well within their rights to consider the antecedents and suitability of the candidate even after a disclosure of a criminal case is made by the employee: SC

The Supreme Court (“SC”) in the case of State of Madhya Pradesh v. Abhijit Singh Pawar has held that even after a disclosure of a criminal case is made by the employee, the employer will be within his rights to consider the antecedents and suitability of the candidate.

The SC overturned the decision of the Madhya Pradesh High Court which had directed the Madhya Pradesh Government to appoint the respondent as he had already made a declaration of a criminal case pending against him. The respondent in this case entered into a compromise and his application for compounding the offences was allowed.

The SC held that employer can certainly take into account the job profile for which the selection is undertaken, the severity of the charges levelled against him and the kind of acquittal, i.e., whether the acquittal was a result of a full- fledged trial based on which the acquittal happened or was it an acquittal based on the witnesses turning hostile or acquittal based on a benefit of doubt given to the accused.

Relying on the case of Avtar Singh v. Union of India, the SC held that even in cases where the employee has made a truthful declaration of a concluded criminal case, the employer still has the right to consider antecedents and cannot be compelled to appoint the candidate.

GameChanger Views:

  • We believe that this is an important case as it reiterates the fact that employers have the autonomy to determine whom they employ. It states down that employers can consider the job requirements, the severity of charges levelled, thus, giving the employers the autonomy to decide whom they will employ.

IT Department amends PAN Card Rules to tackle tax evasion

The Income Tax Department (“IT Department”), has recently amended the Income Tax Rules, 1962 (“IT Rules”) making changes to the issuance and usage of Permanent Account Number Cards (“PAN Cards”). A PAN Card is an identification number given to every income tax assesse. PAN Card is required for all financial transactions beyond a certain limit, that is amended by the IT Department from time to time.

The amendments have been made in order to tackle tax evasion. The amended IT Rules come into force from December 05, 2018. The salient features of the amended IT Rules are as follows:

  • Any person, other than an individual (“Entity”) who makes transactions worth more than 2,50,000/- (Rupees Two Lakh Fifty Thousand Only) in a financial year will need to obtain a PAN Card by May 31, 2019.
  • Key managerial personnel such as managing directors, partners, trustees, karta, CEOs, CFOs, CXOs of all companies, partnerships and other entities  will need to have a PAN Card by May 31, 2019.
  • It is also not mandatory for applicants to give their father’s name in the event that they have been raised by a single mother.

GameChanger Views:

  • We believe that the new amendments will go a long way in tackling tax evasion. By making it mandatory for all Entities with sales of more than INR 2,50,000/- (Two Lakh Fifty Thousand), the IT Department will be able to track financial transactions better and therefore, broaden the tax base.
  • The option of not providing the applicants father’s name is a welcome move. This may lead to the government making it an optional for all applications and forms submitted to the government.

Government increases grant to encourage adoption of EVs

The Ministry of Heavy Industries and Public Enterprises (“Ministry”), on November 20, 2018, issued a notification enhancing the total outlay for phase I of the Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (“FAME India”). The Ministry has enhanced the outlay from INR 795,00,00,000 (Seven Hundred and Ninety Five Crore) to INR 895,00,00,000 (Eight Hundred and Ninety Five Crore).

FAME India was launched in 2015 by the government in order to incentivize the production and adoption of electric vehicles (“EV”) in India. FAME India was launched in 4 (Four) phases. Phase I, the objective of which was to lay the ground work for incentivising the manufacturers and consumers from adopting EVs. Phase I of FAME India was set to be implemented over a period of 2 (Two) years from April 1, 2015 – March 31,2017. However, phase I has received 4 (Four) extensions of four months each.

GameChanger Views:

  • The increase in the outlay for phase I of FAME India will help the government achieve its ambitious target of ensuring that 30% (Thirty Percent) of all vehicles sold are EVs by 2030. In addition to reducing the carbon footprint, it will also reduce the $ 300,000,000,000 (Three Hundred Billion Dollar) bill the government pays for oil imports.

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