Background We had earlier reported that the Indian government, in 2009, waived the requirement of prior government approval in case of payment of royalty by Indian companies to multinational corporations and allowed such payments through the automatic route. Later, we also carried a Business Standard report which stated that the aforesaid relaxation is being used by the MNCs to divert a major portion of the profits made by their Indian arms in the form of royalty payments and technology transfer...
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