Bangalore: India is under pressure from U.S., to incorporate a provision in an investment agreement both countries working on currently. If invoked, it will allow multinational corporations to bypass the Supreme Court and sue the government in foreign tribunals, reports Times Of India.

The bilateral investment pact, knows as 'investor-state dispute settlement', will arm foreign investors operating in India with a slew of rights. Biswajit Dhar, director general of the Research and Information System for Developing Countries said, "We understand that the US is insisting that we sign (the clause), which is a problem area as an investor can drag the state to an international arbitration panel if its investment and/or profits are at risk on account of some domestic regulation." The treaty includes broad definition of investment, covering every aspect from financial transactions to intellectual property to any form of asset, added Dhar.

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