AKSHAY N. PATEL vs RESERVE BANK OF INDIA

The Supreme Court examined the validity of Clause 2(iii) of the Revised Guidelines on Merchanting Trade Transactions issued by the Reserve Bank of India, which denied permission for the appellant's MTT contract. The court conducted a proportionality analysis, balancing the fundamental rights of the appellant with the regulatory aims of the RBI. Ultimately, the court upheld the High Court's decision, affirming the RBI's regulatory authority under the Foreign Exchange Management Act.