Maharashtra cabinet clears International Arbitration Centre for Mumbai

The state cabinet on Tuesday gave its nod to the institutionalised arbitrator policy, which will pave the way for setting up the International Arbitration Centre in Mumbai. The decision will help to resolve disputes related to the contracts and agreements between companies.

The state cabinet on Tuesday gave its nod to the institutionalised arbitrator policy, which will pave the way for setting up the International Arbitration Centre in Mumbai. The decision will help to resolve disputes related to the contracts and agreements between companies.

The institutionalised arbitrator is supposed to be set up at Nariman Point till the full-fledged centre is established at the International Financial Service Centre at the Bandra- Kurla Complex. (HT file photo)

The institutionalised arbitrator is supposed to be set up at Nariman Point till the full-fledged centre is established at the International Financial Service Centre at the Bandra- Kurla Complex.

A majority of the global disputes are currently taken to the Singapore International Arbitration Centre, which is comparatively cheaper and closer for the financial sector. About a third of the cases tried in Singapore are from India, as per the statistics with the government. The one being set up in the city will be the first of its kind in the country. The centre will help the business sector in speedy redressal of their disputes at lower rates. Also, the state is expected to earn the revenue of about Rs2 billion from the centre.

This initiative is part of the state’s endeavour to ease conducting business as was envisaged in the Make In India week held in Mumbai earlier this year. Maharashtra, as a leading industrial state is expected to reap greater benefit from the centre in terms of investment.

Other cabinet decisions

The state government has given an extension to the amenity scheme for the payment of the pending sales tax under section 2, 4 and 5 till November 15 from September 30. Finance minister Sudhir Mungantiwar had announced to the scheme for the recovery which was delayed due to the litigations.

State cabinet sanctioned the proposal of handing over the 200-bedded Pandit Bhimsen Joshi hospital in Mira Bhayandar from Mira Bhayandar Municipal Corporation. The decision was taken after the municipal corporation expressed its inability to run the hospital due to the financial constraint by passing a resolution in general body meeting.