On 1st February 2022, Finance Minister Nirmala Sitharaman announced the Union Budget 2022 and provided for an International Arbitration Center (IAC) to be set-up in GIFT City. It is being established to ensure fast disposal of cases and avoiding repetitive appeals. It will provide cost effective and time-bound dispute resolution mechanism.
Siddhartha Patnaik, Head Legal, T&D, Railways, Solar & Smart Infra, KEC International said that :
“This is a forward looking and futuristic step towards making India as hub of International Arbitration. It will benefit the legal community and especially the Corporates in terms of saving time and money.”
The Government has aimed at ensuring fast disposal of cases and avoiding repetitive appeals which will attract more investors and companies and have unlocked doors for India as a country to become a global dispute resolution centre.
“This is a much needed positive step towards making India a global dispute resolution centre on the lines of the Singapore International Arbitration Centre, or the London Commercial Arbitration Centre.” says Rajiv Mohapatra, Director, Regulatory Affairs (Asia Pacific), MasterCard
The proposed IAC will not only boost foreign investor confidence to set up business in GIFT IFSC but also place GIFT IFSC on par with other competing jurisdictions. This International Arbitration Centre will strengthen the dispute resolution mechanism at GIFT IFSC & enhance the ease of doing business at GIFT. It will enhance the global standard of IAC by providing cost effective and time-bound dispute resolution mechanism.
“ADR has been a long talk in India but concrete steps are being taken presently. This institution should be a benchmark for other institutional ADR centres to follow.” says Anuroop Omkar, Partner, AK & Partners