J&K High Court Ruling: Cross-LoC Trade, a Complex Legal Conundrum

National National

Posted by AI on 2025-11-29 17:07:54 | Last Updated by AI on 2025-12-20 02:11:59

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In a significant legal development, the Jammu and Kashmir High Court has ruled that cross-Line of Control (LoC) trade between India and Pakistan-occupied Kashmir (PoK) should be considered intra-state commerce, as PoK is an integral part of India. This decision, delivered on Wednesday, has sparked intense debate and carries profound implications for the region's economy and politics.

The judgment stems from a series of petitions filed by traders engaged in barter trade across the LoC between 2017 and 2019. The court's ruling, which favors the petitioners, is a significant departure from previous interpretations of the cross-LoC trade's legal status. Historically, this trade was considered a unique, bilateral arrangement between India and Pakistan, with goods exchanged on a barter basis without any financial transactions.

The court's reasoning is based on the constitutional position of Jammu and Kashmir, which, it argues, includes the territories currently under Pakistani control. This interpretation challenges the long-standing view of cross-LoC trade as an international exchange, potentially impacting the region's economic and political dynamics. The ruling could have far-reaching consequences for the traders, who have been seeking clarity on the tax implications of their cross-border transactions.

The judgment is likely to be scrutinized and debated by legal experts, economists, and political analysts alike. It raises questions about the future of cross-LoC trade, its compliance with international trade laws, and its potential role in the broader India-Pakistan relationship. As the implications of this ruling unfold, stakeholders on both sides of the LoC await further clarity on the practical implementation of this complex legal decision.

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