Business
What is the Cannabis Gray Market? – NY Passes Bill to Regulate the Marijuana Gray Market
Not white, not black, but NY passes a bill to regulate the gray market!
The gray market is one that has severely affected the growth of the cannabis industry in many states. New York is not left behind in this reality as the unregulated cannabis market has severely halted the growth of legal businesses. Taxing has also been a nightmare due to the numerous unregulated activities in the industry. However, new dawn might be on the horizon as the New York Senate has just passed legislation to allow officials to curb the activities of gray markets. Read on as we explore what this bill entails and how it will influence the cannabis industry in New York.
The activities of illicit cannabis sellers in New York have been a recurring menace over the years and officials have labored to curb these acts. The lack of proper laws has kept officials shorthanded in this fight for a long but all of that is about to change. The New York Senate just approved a bill to allow regulators to seize illicit cannabis and increase fines levied on unlicensed operators. The bill was introduced to the House on Sunday by Senator Liz Kreuger before it received approval on Wednesday. The timing of this approval shows the seriousness of lawmakers in reducing the activities of gray markets before the start of legal sales of recreational cannabis in the state. Legal recreational cannabis sales are scheduled to commence in the state later this year.
Gray market cannabis bill
A spokesperson of Senator Kreuger, Justin Flagg has stated that the bill is set to empower the two agencies that are concerned with stopping illicit cannabis retailers in the state. The two agencies are the New York Office of Cannabis Management (OCM) and the Department of Taxation and Finance. He states that the activities of unregulated cannabis retailers have grown ubiquitous over the years in Manhattan. He further included that the activities skyrocketed when lawmakers made the move to legalize adult use of cannabis. The bill therefore will address retail cannabis operators that sprung up between the period of legislation and the issuance of licenses.
The situation of the legal recreational cannabis market in New York is that the OCM is still working on rules for the regulated market. This has stopped it from being able to issue licenses and open the market fully for the state. Some overzealous cannabis retailers have however gone ahead to start retail sales without licenses further increasing the circulation of illicit weed in the state.
Flagg explained that Senator Kreuger initiated this bill with the support of the Department of Taxation and Finance and the OCM. Both agencies have complained about their lack of legal backing to close unregulated cannabis businesses under the existing statute in the state. This bill, therefore, comes as a breath of fresh air as it empowers them to do what needs to be done within the confines of the law. Now both agencies can easily find unlicensed cannabis operators and seize weed and properties to cater for tax evasions and licenses that such businesses do not have.
Fines and punishments under this new bill
Illicit pot in New York is defined as any taxable cannabis product for which no tax was paid. There is an increase in the civil penalty for persons who knowingly possess such a type of cannabis product. The legislation also covers cannabis products that aren’t grown by or purchased from a licensed cannabis business of the state. The fine for possession of illicit weed was formerly at $200 per ounce or flower but it has now been increased to $400 per ounce. Consequently, there was also an increase in fines for possession of different forms of cannabis products. Edibles are fined $10 per milligram of THC, concentrates at $100 per gram, and illicit cannabis plants at $1,000.
Along with their fines, the Department of Taxation and Finance is also empowered by this new bill to address licensed businesses that sell illicit cannabis. Such businesses will have their certificate of registration revoked once it can be shown that they sell or purchase illicit weed. Premises where such activities are being carried out can also be closed down and have their properties seized in line with the bill. This improves the effectiveness of the department and also reduces the proliferation of such gray markets.
Menace of proliferating gray markets
Cannabis gray markets pose a major safety issue which Justin Flagg also pointed out while speaking about the recent bill. Unregulated cannabis retailers do not follow necessary safety precautions and packaging rules as stipulated by regulators. They also do not put in measures to keep such products from getting to the hands of children. This means the actions of gray markets further increase the risk of cannabis use by children. This means that for proper use of cannabis to be assured in a state with legal medical and recreational cannabis use, it must be through regulated operators.
Possible oversight in stamping the bill this early?
Not everyone however is in support of this present legislation put forward by Senator Kreuger. Joshua Waterman, co-founder of Legacy Growers Association who is also a grower himself has stated his faults with the legislation. He spoke to local media recently where he stated that officials might use the bill to do more than what it stipulates. Waterman believes the officials of the state are likely to use the bill to penalize and fine minorities and lower-class individuals.
Waterman believes that this move by the state to release and stamp such a bill is more likely to build mistrust between them and legacy growers. The state has repeatedly claimed that it wants legacy people to be included in the legal market. Yet Waterman believes that it is counterproductive for the state to put out such a bill before it releases applications for licensing.
Bottom line
The emergence of this bill is certainly a breath of fresh air for those in enforcement agencies. All that is left is for full implementation to commence and proper structuring to ensure efficiency.
Business
Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light
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.
Business
Alleged Crores Pharma Scam Mastermind Arrested from Surat
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.
Business
EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices
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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