Decoding India’s New Model BIT (III)
The concept of expropriation has always been, and continues to be, a controversial issue in international investments. In particular, most problematic is the interpretation of the concept of “indirect expropriation” which has been widely used by international investors to challenge a wider range of regulatory measures on health, environment and public safety that infringe on their investment rights. For instance, a number of private corporations have used regulatory expropriation provisions under Chapter 11 of NAFTA to sue governments and demanded cash compensation for government regulations that have incidentally or marginally affected their investments.
India’s new model BIT does not allow nationalization or expropriation of an…