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        Case ID :
        Indian Laws

        Special Package of Incentives - Imposition of cap on the total...

        Court Rules State Cannot Impose Financial Cap on Incentive Package, Must Honor Original Contractual Commitments.

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                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.
                                Special Package of Incentives - Imposition of cap on the total IPA allowable in respect of a unit based on Fixed Capital Investment - The Court held that the special package of incentives provided to ACL did not stipulate any overall financial cap based on FCI for the release of IPA. It was found that the package explicitly stated that IPA would be released without any financial cap, as outlined in the approval letter dated 02.03.2006. - The Court found that the State’s attempt to impose a financial cap retrospectively was mala fide and arbitrary. The Court reinforced the principle that contractual commitments made by the State under special packages should be honored, and any attempt to unilaterally alter such commitments is impermissible.
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