Connect with us

Business

The Illegal Cannabis ‘Whack-A-Mole’ Problem Finally Solved? – NYC to Go After Landlords That Rent to Illegal Weed Shops

Published

on

New York says why chase the mouse when you can go after the mouse trap maker instead!

Lynn C. Schulman, a councilman for New York City, filed a measure in April 2023 that would make it illegal for landlords to lease to business tenants who are engaged in the unauthorised sale of cannabis. On Thursday, June 22, the bill was sent to and passed by the entire Council after being authorised by the Committee on Public Safety. The bill will now be delivered to Mayor Eric Adams’ desk, having been given 30 days to sign it into law or veto it.

If passed, the bill would dispatch city inspectors to the thousands of alleged unlicensed cannabis outlets. The landlord might be fined between $5,000 and $10,000 if the inspector discovers that illegal cannabis is being sold on the property. The penalty can be avoided if the landlord can show evidence that eviction proceedings have started since the initial inspection. A second inspection would then happen. The measure would permit the mayor to select any state agency to inspect for such offences in addition to the state agencies already allowed to do so. Even though the imposition of fines on landlords may significantly lower the number of unauthorised cannabis outlets, several provisions of the bill may allow for these illegal stores to take advantage of a loophole.

Since Governor Kathy Hochul gave the Office of Cannabis Management (OCM) authority to enforce recently authorised by the state’s FY 2024 Budget, actions against the illegal enterprises themselves have already started in earnest. The Governor’s report that roughly $11 million worth of illegal cannabis goods have been seized so far around the state, and the passage of the bill comes at the same time. It’s been suggested for a long time that the extra step of imposing penalties on landlords who intentionally rent to unregistered operators should serve as a disincentive to the black market.

The Coexistence Challenge: Legal and Illegal Cannabis Markets

The Marijuana Regulation and Taxation Act (MRTA) established the legal cannabis industry in New York in March 2021, and the strict regulatory framework of the OCM constrains it. In contrast, the illegal cannabis industry is much larger, older, and unconstrained by the limitations placed on valid license holders, such as the payment of taxes and public safety restrictions on operating in areas of concern or selling to underaged children.

It was obvious that the two industries could not really coexist before the first state-licensed dispensaries opened their doors. Since the MRTA legalised cannabis throughout the state, the unlicensed market (also known as the legacy market, the grey market, or the black market) has opportunistically exploded. It has continued to spread at an alarming pace in contrast to the legal market, whose rollout has sputtered along under the weight of bureaucracy. Even California, which has one of the oldest adult-use (recreational) cannabis programs in the country, sees up to $8 billion in illegal sales annually, bringing in a lot more money than the legal industry does.

In response to the issue, politicians at different levels of state government have proposed measures to hold landlords accountable for leasing unlicensed cannabis businesses. The aim is to discourage landlords from entering into such leases or to impose penalties if they do. By doing so, operators would struggle to find suitable space or face eviction if they have already signed a lease. This would force illicit operators to either go completely underground, cease their operations, or consider entering the legal marketplace by obtaining a dispensary license. However, many existing operators may find this option unfeasible.

New York took the lead by prioritising justice-involved license applicants through its Conditional Adult-Use Retail Dispensary (CAURD) program. Despite this, after over two years since the passage of the Marijuana Regulation and Taxation Act (MRTA) and the submission of thousands of adult-use cannabis applications, only a limited number of legally compliant dispensaries are operational in New York. Landlords who lease to unlicensed operators cannot claim ignorance to evade fines. The proposed bill poses a significant risk of enforcement action against such landlords, especially after receiving warning letters from city agencies that undermine any claims of ignorance. Falcon Rappaport & Berkman can assist landlords in drafting leases with stronger use restrictions to discourage unlicensed cannabis sales and simplify eviction procedures in case of any illicit activities.

Challenges and Considerations

Imposing fines on commercial landlords and encouraging them to evict illicit cannabis tenants is a crucial step in the implementation of New York’s legal cannabis market. Without these measures, legitimate license holders would remain at a disadvantage, and both consumers and the general public would miss out on the advantages of a well-regulated marketplace.

However, it is essential to carefully consider the approach to fining commercial landlords or implementing other enforcement actions. A specific provision in the proposed bill, section C.1., states that written notices and potential fines apply only to properties exclusively used for selling illicit cannabis and “not occupied for any other licensed or lawful purpose.” While the bill may still result in fines for landlords of unlicensed cannabis stores, this provision means that if the premises are used for another lawful purpose alongside illicit activities, the fines may not apply. This creates a potential loophole where landlords of bodegas and convenience stores selling cannabis products could potentially avoid penalties under this bill.

We must recognise the complexity and adaptability of the unregulated market. This bill would certainly hinder significant competitors to licensed adult-use dispensaries if enacted. However, it falls short of addressing the entire unregulated cannabis market in New York. Regular reassessment of enforcement actions and implementing well-crafted policies will be necessary to foster a thriving adult-use cannabis industry in New York.

Bottom Line

Approving the measure in New York City to fine landlords and encourage evictions for unlicensed cannabis sales is a crucial step in regulating the legal cannabis market. While it addresses the issue of illicit operators, some potential loopholes and challenges need to be carefully considered. Ongoing evaluation, reassessment of enforcement actions, and well-crafted policies will be necessary to ensure the success of the legal adult-use cannabis industry and effectively curb the unlicensed market in New York.

Source: https://cannabis.net/blog/news/the-illegal-cannabis-whackamole-problem-finally-solved-nyc-to-go-after-landlords-that-rent-to-i

Business

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

Published

on

By

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.

Continue Reading

Business

Alleged Crores Pharma Scam Mastermind Arrested from Surat

Published

on

By

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.

Continue Reading

Business

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

Published

on

By

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.

Continue Reading

Trending

Copyright © 2022 420 Reports Marijuana News & Information Website | Reefer News | Cannabis News