Offshore investors cannot seek legal recourse for assured return investments

Bombay High Court, in the case filed by IDBI trusteeship Services, on behalf of FMO, against Hubtown as the guarantor, while upholding the Foreign Direct Investment (FDI) in real estate can be made only by way of equity and not debt by way of any fixed return, held that, offshore investors cannot seek legal recourse for their assured return investments in India. These assured return investments typically happen through structured quasi debt instruments.