Amongst the few clear defenses available to a private party aggrieved by a Government renegading on its promise, the doctrine of promissory estoppel is the most prominent and time-tested defense. Arising from the common law principle, the doctrine over the decades has been used in almost all branches of law, including taxation. The doctrine of promissory estoppel has repeatedly come to the rescue of industries aggrieved by unilateral revocation of governmental commitments, involving investment benefits, tax incentives, rebates, remissions, etc.
Against this backdrop, Kumar Visalaksh, Partner?and Akanksha Dikshit, Associate at Economic Laws Practice (ELP) have co-authored an article for Mondaq, titled ‘Unsettling The Settled Doctrine Of Promissory Estoppel – The Ghost Of VVF’. In their article Kumar and Akanksha discuss the 3-judge bench ruling in VVF Industries (2020). The article analyzes how has the ruling diluted the principles of promissory estoppel, having severe financial implications on investors who have lived up to their commitment of investment in backward areas and have helped in generating employment opportunities.
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