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New marijuana guidelines prompt New York retailers, applicants to adjust business plans again

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Another late-inning policy shift by marijuana regulators in New York has rattled the industry as the potential billion-dollar market preps for adult-use sales within weeks.

This time, a new real estate allowance threw retail license holders and other stakeholders for a loop, prompting aspiring entrepreneurs to take over the challenging task of finding their own retail space instead of relying on state regulators.

Under new guidance issued Dec. 9 by the Office of Cannabis Management (OCM), Conditional Adult-Use Retail Dispensary (CAURD) license holders – New York’s version of social equity – can now submit their own proposed store locations in prequalified areas to set up shop rather than relying on and waiting for regulators to slot their stores in state-selected properties.

This significant regulatory shift – one of several in the past few months – is a big win for well-capitalized operators, according to New York cannabis attorney David Feder, because they can negotiate lease agreements and create retail designs on their terms.

“The ones who are capitalized view this as a home run,” said Feder, who represents CAURD licensees and applicants on all sides of the financial spectrum.

This option, however, appears to carry more financial risk.

Some operators might forfeit state funding dedicated to real estate procurement, construction and other related startup and operational costs once promised to all CAURD licensees and applicants under New York’s developing adult-use program.

The new guidance states provisional license holders who submit their proposed retail location “may still qualify for financial support for renovations,” a departure from previous assurances.

Scrambling for solutions

Until last week, social equity license holders and applicants in line to open the first adult-use cannabis stores in New York were under the assumption that regulators would find suitable retail locations and negotiate favorable lease terms – with state funding covering rent and other initial operating costs.

That was essentially the state’s initial rollout plan detailed in late June by Gov. Kathy Hochul, who also announced a proposed $200 million fund to support those initiatives.

The fund, which aimed to support as many as 150 CAURD licensees, planned to pool $50 million from adult-use licensing fees and revenue and “up to $150 million from the private sector.”

The equity fund is managed by Social Equity Impact Ventures, led by former NBA star Chris Webber, cannabis entrepreneur Lavetta Willis and an firm affiliated with financial services company Siebert Williams Shank.

The Dormitory Authority of the State of New York (DASNY) is overseeing property leasing and facility construction.

The fund has yet to disclose any private investments or general progress.

The DASNY told MJBizDaily last month the agency is in discussions with “well over 50 property owners” but did not respond to several inquiries for this story.

Feder said some of his existing and potential clients feel the rug was pulled from under them.

“Many of them are scrambling trying to figure out what to do,” he said.

“It puts them in a very challenging position. Now they have to replace all of those support mechanisms.”

This latest development followed another significant turn in November, when the OCM announced it would allow qualifying businesses to launch delivery services before opening their retail stores, another significant contrast from the state’s original plan and other recreational market roll outs.

In that same announcement, the OCM issued the state’s first 36 marijuana retail licenses to applicants convicted of a marijuana-related offense (or had an immediate family member with a conviction) and had owned at least a 10% stake in a profitable business for two years – a rather high barrier for verification.

New rules, new hope

The latest rule change was among several new guidelines issued to New York retailers to kick-start delivery operations.

Others include:

  • Store owners can secure a warehouse to fulfill delivery orders for one year while building permanent retail locations.
  • Businesses can employ as many as 21 delivery staffers.
  • Deliveries can be handled via bicycle, scooter, similar modes of transportation and cars.
  • Customers must place online/phone orders only; no in-person pickups.
  • Customers are required to make online prepayments only; no cash transactions.

CAURD applicant Jillian Dragutsky welcomes the opportunity to select her own retail location and build-out plan but is also depending on some state funding.

“Right now, we’re kind of in limbo as to what they’re going to offer,” said Dragutsky, a Suffolk County resident and one of 903 qualified social equity applicants.

“There’s really no clear-cut information on that.”

She applied for a license in Manhattan, one of the jurisdictions unaffected by an ongoing federal lawsuit challenging residency requirements that’s halted the issuance of dozens of licenses throughout the state, including Brooklyn, Central New York, the Finger Lakes, the mid-Hudson area and Western New York.

Like many applicants and market watchers, Dragutsky was caught off guard by the regulatory shift to allow delivery sales before store openings.

“It is a complete departure from the business plan I had in mind,” she said. “I’m just hoping to get one of the licenses.”

Opportunity knocks

Gregory Tannor’s phone has been ringing constantly since the OCM issued the new guidelines.

His commercial real estate brokerage firm in New York City has fielded dozens of requests seeking real estate for cannabis delivery spaces and retail locations for license holders and applicants.

“We haven’t been able to take a breath,” said Tannor, the executive managing director and principal at Lee & Associates.

“The landscape is going to be competitive.”

All the policy shifts and changes leading up to the launch of recreational sales, expected by year’s end, has Dragutsky a bit on edge – but excited about the market’s potential.

New York adult-use retailers are projected to generate $1 billion-$1.2 billion in sales next year and growing to $2.2 billion-$2.7 billion by 2026, according to the 2022 MJBiz Factbook.

“The New York market is set to explode,” said Dragutsky, admitting it’s a nerve-wracking time with so much uncertainty looming.

“You just have to be ready to adapt and change and go with the flow since it is an emerging market.”

Source: https://mjbizdaily.com/new-marijuana-guidelines-prompt-new-york-retailers-applicants-to-adjust-business-plans-again/

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Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light

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Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).

The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.

India’s Indigenous LEO Satellite Vision

Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.

The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.

According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.

The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.

Regulatory Process Moves Forward

Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.

The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.

Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.

Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.

Broadband, Mobile Connectivity, and Strategic Applications

Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.

The company also intends to establish 20 to 22 ground stations across India to support network operations.

Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.

Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.

Major Step for India’s Space and Telecom Sectors

Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.

The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.

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Alleged Crores Pharma Scam Mastermind Arrested from Surat

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After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.

Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.

Fake Business Deals and Dishonoured Cheques Used in Fraud

Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.

In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”

Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.

Multiple Identities and Repeated Fraud Pattern

Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.

Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.

Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.

Multi-State Surveillance Leads to Arrest in Surat

A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.

Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.

Growing Threat of Corporate Identity Fraud

The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.

Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.

Experts Urge Stronger Due Diligence in High-Value Transactions

Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.

Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.

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EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

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A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.

Investigation Under Digital Markets Act Gains Momentum

The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.

Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.

Industry Groups Demand Swift Action

Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.

Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.

In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.

Google Denies Allegations

Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.

However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.

Potential Billion-Euro Penalties

If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.

Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.

Wider Implications for Big Tech

The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.

A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.

As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.

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