Articles for Latest News

Sajai Singh, Partner at J Sagar Associates Shares a Quick Byte on Digital News Portals, Netflix, Amazon Prime, Other OTTs Now Under I&B Ministry

The Ministry of Information and Broadcasting (Ministry of I&B) is a ministerial-level agency of the Government of India responsible for the formulation and administration of rules, regulations and laws in the areas of information, broadcasting, the press and the Cinema of India. Generally, Press and Films enjoy the same constitutional freedom related to expression, with Article 19(1) of the Constitution of India guaranteeing freedom of speech and expression. Such a right is not absolute and has certain limitations, including matters that are against foreign relations, public policy, integrity and sovereignty of the State, decency and morality, public order, etc., as mentioned in the Article 19(2). COVID-19 has come at a time where digitisation was rising in India and the common man was getting greater access to affordable internet. In the last 8 months, OTT or digital media and entertainment platforms, have all but replaced television. Yes, digital content is not subject to censor certification applicable to films and television programs. Other than a Universal Self-Regulation Code for OCCPs, OTT platforms enjoy ample creative freedom. The Self-Regulatory Code is yet to become fully functional (August 15, 2021) and its application is based on a best-effort basis. The Ministry of I&B realised the minimal regulation and uncensored content, being freely made available on OTT platforms, to take this step. Jurisprudence on pre-censorship of films in India has historically been tested on the basis of freedom of speech and expression. The rationale being that such freedom was at the heart of any artistic expression. Censorship of films in India is undertaken by the Central Board of Film Certification (CBFC) set up under the Cinematographic Act, 1952 (Act). The Act along with the Cinematographic (Certification) Rules, 1983 and the Central Government's guidelines dated December 6, 1991, issued pursuant to Section 5B of the Act (Censorship Laws), set out the manner in which films are to be certified for exhibition in India. On the other hand, television networks, television broadcasters and related matters are governed by the Cable Television Networks (Regulation) Act, 1995 and Cable Television Networks Rules, 1994, which among other things, restrict transmission through a cable service, of any program that is not in conformity with the program code, and of any advertisement that is not in conformity with the advertising code set out in the Cable Television Networks Rules, 1994. There was debate that OTT platforms were intermediaries under the Information Technology (Intermediary Guidelines) Rules, 2011. Thus, they were required to create a due diligence framework with respect to the information being hosted or published by the intermediary. Now with this move, curated content on OTT platforms will also warrant a level of certification, censorship and care that other avenues for content consumption attract. If self-censorship under the Self-Regulatory Code is unacceptable to the Ministry of I&B, then our hope is that the Ministry of I&B will also consider the recommendations made by the expert committee, chaired by Mr. Shyam Benegal, while trying to formulating guidelines and procedure for certification of content on OTT platforms. One key differentiator of this digital medium is the lack of public exhibition of content; rather, a pull factor wherein the consumer decides what content s/he wants to consume, at what time and after paying a transaction value for the same. Thus, the impact risk may be at variance from that of motion pictures which were available in theatres for public exhibition. In any event, it is imperative that the industry is allowed to flourish and grow in a uniform, non–discriminatory and non–discretionary manner

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Mr Sudish Sharma, Executive Partner, Lakshmikumaran & Sridharan Attorneys Shares a Quick Byte on the New Labour Codes: Top 5 Changes That Will Impact Employers And Employees

“The Government is constantly making efforts towards ease of doing business and the labour codes are another step in this direction and a welcome one. The labour codes provide for fixed-term employment which will generate employment with better provisions such as payment of applicable gratuity and at same time impart flexibility to industry, introduction of concept of “Negotiating Trade Union” or “Negotiating Trade Councils which will assist the employees to voice their concerns and the industry dealing with a single trade union or trade council for negotiation which may lead to speedy resolution, making necessary changes in wage structure so as to bring uniformity as well as capping the exclusions and increasing the social security net for employees. Bearing in mind the requirements, the threshold for layoff and retrenchment provisions has been appropriately increased. The rules as well as the manner in which implementation is done, will be equally important. The codes strive to achieve a balancing act to protect the interests of both employers and employees and to encourage investments in India.”

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Anshul Mathur, Partner, Lakshmikumaran & Sridharan Attorneys shares a quick byte on the 43rd GST Council Meeting

The discussions in the 43rd GST Council meeting were focussed on borrowing by the states and extension of compensation cess beyond the year 2022 to make up for the shortfall in collections. The Finance minister candidly accepted that even after three meetings on the issue there was no consensus reached, however, she described the situation as a “difference of opinion” rather than a “dispute between centre and states”. Ruling out the possibility of borrowing by the Centre due to adverse ramifications on cost of borrowing for states and private sector, it was discussed that the states who have opted for option I and are willing to borrow under the special window facilitated by the RBI, should not be stopped by other member states just because a unanimous decision is not reached. After this third consecutive meeting on the issue, taxpayers sincerely hope that the next meeting focuses on issues which directly affect them.

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