Building & Construction

Duke & Baron, a distinguished law firm, is well-equipped to provide comprehensive legal and compliance services to clients engaged in the private and public construction, infrastructure, superstructure and megaproject sectors across India. With our multidisciplinary team comprising practising criminal advocates, corporate lawyers, in-house counsels, taxation experts, and company secretaries, we are uniquely positioned to address the multifaceted legal challenges faced by our clients in these high-stakes industries. The construction and infrastructure sectors in India, known for their large-scale projects and significant investments, encounter complex regulatory frameworks, disputes, and compliance obligations. These industries are also vulnerable to the risks of white-collar criminal trials, which can significantly impact a company’s operations, reputation, and financial standing.

We provide our clients with strategic legal guidance and effective representation before judicial and quasi-judicial authorities to ensure seamless business operations. Our firm’s deep expertise across various areas of law, combined with a proactive approach to compliance, ensures that our clients not only mitigate legal risks but also stay on top of evolving regulations, ensuring long-term success.

Primary Legal & Compliance Regulatory Challenges

1. Regulatory and Licensing Compliance

The construction and infrastructure sectors are subject to an array of regulations and laws that vary depending on the specific nature of the projects. Regulatory compliance is critical to ensure that projects adhere to national and state laws, environmental norms, and safety standards.

• The Environmental Protection Act, 1986 (EPA): This Act regulates environmental pollution and mandates compliance with environmental norms, including the need for an Environmental Impact Assessment (EIA) for large projects. It empowers various environmental authorities to take legal action against violations.
  • Relevant Regulatory Authorities:
    • Ministry of Environment, Forest and Climate Change (MoEFCC)
    • State Environmental Impact Assessment Authorities (SEIAAs)
• The Real Estate (Regulation and Development) Act, 2016 (RERA): RERA governs the real estate sector, including construction projects. It ensures transparency in transactions, establishes clear timelines for project delivery, and mandates the registration of real estate projects with the relevant authority.
  • Relevant Regulatory Authorities:
    • Real Estate Regulatory Authority (RERA) at the state level
• The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act): Construction companies involved in extracting raw materials for their projects are subject to the MMDR Act. This Act regulates the extraction, processing, and transportation of minerals, ensuring compliance with environmental and safety standards.
  • Relevant Regulatory Authorities:
    • Indian Bureau of Mines (IBM)
    • Ministry of Mines (MoM)
• The Goods and Services Tax Act, 2017 (GST Act): Construction companies must comply with the GST Act, which regulates the taxation of goods and services, including the supply of materials and works contracts. It plays a significant role in ensuring transparency and timely tax payments.
  • Relevant Regulatory Authorities:
    • Central Board of Indirect Taxes and Customs (CBIC)
    • State GST Authorities

How We Assist: Our firm supports clients in ensuring that all necessary permits, licenses, and approvals are obtained, maintained, and renewed throughout the lifecycle of a project. We assist with compliance regarding EIA clearances, RERA registration, GST filings, and mining permits. We also provide expert legal representation in case of regulatory breaches, guiding clients through investigations and appearing before regulatory bodies to mitigate penalties.

2. Land Acquisition and Property Law

Land acquisition remains a critical issue for construction and infrastructure projects. This process involves legal complexities, particularly when land is acquired for public projects or through public-private partnerships (PPP).

• The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (LARR Act): This Act governs the process of land acquisition, providing compensation and ensuring the rehabilitation and resettlement of affected individuals. It ensures fairness in the land acquisition process, particularly in the case of public infrastructure projects.
  • Relevant Authorities:
    • Land Acquisition Compensation Authorities
    • State Revenue Departments
• The Indian Land Acquisition Act, 1894: While largely repealed by the LARR Act, cases related to land acquired under the old Act can still arise, particularly concerning disputes related to compensation or the legality of the acquisition.

How We Assist: Our team of experts helps clients navigate land acquisition laws, ensuring compliance with the LARR Act and related regulations. We represent clients before judicial bodies, including the State High Courts and Supreme Court of India, and quasi-judicial bodies like the Land Acquisition Authorities, to resolve disputes regarding compensation and land rights.

3. Contractual Disputes and Tort Law

Disputes related to contracts, especially in large-scale construction projects, are common due to the complexity of contracts, cost overruns, and timeline delays. Construction companies may also face tort actions for issues such as property damage or injury due to negligence.

• The Indian Contract Act, 1872: Governs all contractual relationships, including the formation and enforcement of construction contracts. It offers remedies for breach, misrepresentation, and failure to perform contractual obligations.
• The Sale of Goods Act, 1930: Governs the sale of materials used in construction contracts and ensures the proper transfer of ownership.
• The Specific Relief Act, 1963: Provides remedies for breach of contract, including specific performance and injunctions, ensuring that parties uphold their contractual commitments.
• Tortious Liability under Indian Law: Companies may be held liable for tortious acts such as negligence or defects in construction leading to damage to property or injuries. The Bharatiya Nyaya Sanhita, 2023 (BNS), covers negligence and breach of statutory duty leading to accidents.

How We Assist: We offer strategic counsel and litigation services for clients involved in commercial suits, tort actions, and breach of contract disputes. Our corporate and criminal litigation experts ensure that disputes are handled efficiently, whether through Alternative Dispute Resolution (ADR) or court proceedings. We also represent clients in arbitration and mediation as appropriate, ensuring effective dispute resolution.

4. Labour and Employment Laws

Given the labour-intensive nature of the construction industry, legal issues surrounding employee rights, safety, wages, and conditions are common. Non-compliance with labour laws can lead to significant penalties and reputational damage.

• The Industrial Disputes Act, 1947: Regulates disputes between employers and employees, including those regarding layoffs, retrenchment, and union rights.
• The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952: Mandates contributions to employee provident fund accounts and other employee welfare measures.
• The Payment of Wages Act, 1936: Ensures that workers receive timely and fair wages.
• The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996: Specifically regulates the welfare of construction workers and mandates their registration and welfare fund contributions.

How We Assist: We assist clients with labour law compliance, draft employment contracts, and resolve labour disputes. Our team helps clients address employee-related issues, such as layoffs, retrenchment, and statutory payments and represents clients before Labour Tribunals, Industrial Tribunals, and Employee Welfare Authorities.

5. Environmental and Safety Compliance

Construction companies must adhere to environmental regulations, including pollution control, waste management, and health and safety standards. Compliance with these regulations is vital to avoid penalties and reputational damage.

• The Factories Act, 1948: Regulates the working conditions of construction sites and ensures worker safety.
• The Environment Protection Act, 1986: Ensures compliance with environmental standards and mandates the submission of environmental impact assessments.

How We Assist: We guide clients in complying with environmental regulations and safety standards, ensuring all necessary assessments and permits are obtained. Our firm represents clients in environmental and safety-related disputes, protecting their interests before environmental tribunals, pollution control boards, and safety regulatory authorities.

6. Taxation Issues

The construction sector faces various tax challenges, particularly concerning works contracts, GST, and deductions on construction expenses.

• The Goods and Services Tax Act, 2017: Regulates the taxation of construction materials and services under the GST regime.
• The Income Tax Act, 1961: Covers the taxation of profits, capital gains, and deductions related to construction projects.

How We Assist: Our taxation experts offer strategic advice on tax structuring, GST compliance, and tax optimization. We assist in filing returns, conducting audits, and representing clients before tax authorities, GST tribunals, and Income Tax Appellate Tribunals.

White-Collar Criminal Trials

The construction sector is prone to white-collar crimes such as corruption, fraud, bribery, misrepresentation, and financial mismanagement. These criminal activities can result in significant penalties, loss of contracts, and reputational harm.

1. Corruption and Bribery

• Prevention of Corruption Act, 1988 (PCA): Deals with offences involving the bribery of public servants or private individuals for awarding construction contracts or influencing government projects.

2. Fraud and Financial Mismanagement

• Bharatiya Nyaya Sanhita, 2023 (BNS): These laws address fraud, financial misappropriation, and criminal breach of trust, which can arise in construction projects.

3. Money Laundering

• Prevention of Money Laundering Act, 2002 (PMLA): This Act ensures that construction companies do not engage in money laundering activities, which can lead to severe criminal penalties.

4. Environmental Violations

• The Environment Protection Act, 1986 (EPA): Criminal penalties for non-compliance with environmental norms in construction projects.

How We Assist: We offer robust criminal defence strategies for clients facing white-collar criminal charges. Our firm defends clients in corruption, fraud, money laundering, and environmental crimes. We represent clients in criminal trials before judicial authorities like Sessions Courts, Special Courts, State High Courts and the Supreme Court of India, ensuring that their legal rights are safeguarded.

The construction and infrastructure sectors in India are fraught with complex legal challenges arising from regulatory compliance, contractual disputes, land acquisition issues, labour laws, taxation, and potential criminal liabilities. Duke & Baron, with its multidisciplinary team, is equipped to provide end-to-end legal solutions that ensure clients remain compliant with regulatory frameworks, avoid legal pitfalls, and resolve disputes efficiently. Our firm’s expertise in corporate law, criminal defence, taxation, and compliance is reinforced by our deep understanding of the construction sector. Whether representing clients before regulatory authorities, arbitration tribunals, or in commercial litigation or criminal trials, we ensure our client’s legal interests are effectively safeguarded, allowing them to focus on building and expanding their businesses with confidence.