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RBI Sets Up 30-Member Cell to Clean Up 8,000 Pending Financial Regulations
RBI Sets Up 30-Member Cell to Clean Up 8,000 Pending Financial Regulations

The Reserve Bank of India has launched a 30-member Regulatory Review Cell (RRC) to review 8,000 existing financial regulations, aiming to reduce outdated rules and cut compliance costs.

Nearly 5,000 provisions are deemed obsolete. The RRC will consolidate them into around 3,000 clear, modern regulations, starting with 33 core subjects. The Cell will assess relevance, consumer impact, and regulatory gaps every 5–7 years.

This internal, Governor-backed initiative marks a shift from past clean-up efforts like RRA 2.0, embedding reform into RBI’s system.

Experts welcome the move for boosting transparency, reducing friction, and aligning regulation with evolving financial sector needs.

Read Details / 11 days ago

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Bank Guarantee Is an Independent Contract, Cannot Be Affected by Side Agreements: Delhi High Court
Bank Guarantee Is an Independent Contract, Cannot Be Affected by Side Agreements: Delhi High Court

The Delhi High Court has held that banks cannot avoid liability under an unconditional and irrevocable bank guarantee by invoking side arrangements not reflected in the guarantee itself.

Justice Jyoti Singh held that a bank guarantee is an independent contract, enforceable solely on its written terms, regardless of disputes in underlying agreements. 

The Court dismissed Kotak Mahindra Bank’s ₹48.77 crore recovery suit against the Union of India, finding no escrow condition in the guarantees and rejecting claims under Sections 133 and 139 of the Contract Act. 

However, Kotak was permitted to pursue claims in the defaulting contractor’s liquidation proceedings.

[Kotak Mahindra Bank v Union of India]

Judgement Copy / 16 days ago

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Banking Laws (Amendment) Act, 2025 Comes Into Force from August 1 With Major Governance Reforms
Banking Laws (Amendment) Act, 2025 Comes Into Force from August 1 With Major Governance Reforms

The Banking Laws (Amendment) Act, 2025 will come into force from August 1, bringing significant changes across India’s banking sector.

The amendments span five major laws, including the Banking Regulation Act and the Reserve Bank of India Act. Key changes include raising the threshold for “substantial interest” in cooperative banks to ₹2 crore and extending director tenure in cooperative banks to 10 years, excluding chairpersons and full-time directors.

Public sector banks can now transfer unclaimed investor funds to the Investor Education and Protection Fund (IEPF) and pay statutory auditors directly. RBI reporting requirements have also been eased by replacing weekly submissions with fortnightly or monthly reports.

The reforms aim to strengthen governance, improve audit standards, and safeguard depositors. The Act was notified on April 15, 2025..

Read Details / 16 days ago

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Karnataka High Court Affirms Right to Dependency Compensation Regardless of Cohabitation
Karnataka High Court Affirms Right to Dependency Compensation Regardless of Cohabitation

The Karnataka High Court has held that cohabitation is not a necessary condition for a spouse to claim compensation under the Motor Vehicles Act.  

Justice Ravi V. Hosmani allowed an appeal filed by Ningappa, stating that the onus lies on the insurance company to prove that the spouses were living separately, and not on the claimant to prove cohabitation.

The Court found no evidence that the deceased, Yallawwa, was living apart from her husband, or that she had lost dependency due to remarriage or infertility. The Court called the tribunal's earlier denial of compensation unlawful.

Applying the 2021 notional income chart, the Court awarded over ₹14.9 lakh with 6% annual interest from the claim's filing date.

Read Details / 19 days ago

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Teacher/Headmaster Not ‘Employee’ Under Gratuity Act, Not Entitled To Benefits: Allahabad High Court
Teacher/Headmaster Not ‘Employee’ Under Gratuity Act, Not Entitled To Benefits: Allahabad High Court

The Allahabad High Court has held that teachers and headmasters in institutions under the U.P. Basic Education Board do not qualify as “employees” under Section 2(e) of the Gratuity Act, 1972, and are thus ineligible for its benefits.

The Court clarified that their appointments and service conditions, including gratuity, are governed solely by the U.P. Basic  Education Teacher Service Rules, 1981, and relevant government orders.

Since the petitioner retired at 64, exceeding the state’s 60-year limit, he was deemed ineligible.

The Court affirmed that state-specific schemes take precedence over the central Gratuity Act for such teachers and dismissed the appeal. [Bindra Prasad Patel v. State Of UP and 3 Others]

Judgement Copy / 21 days ago

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Kerala High Court: No 138 NI Act Case for Cash Loans Above ₹20K Without Valid IT Act Explanation
Kerala High Court: No 138 NI Act Case for Cash Loans Above ₹20K Without Valid IT Act Explanation

The Kerala High Court held that cheque bounce cases under Section 138 of the NI Act are not maintainable if based on cash loans above ₹20,000 made in violation of the Income Tax Act, unless there’s a clear and valid explanation as per Section 273B of the IT Act.

Justice P.V. Kunhikrishnan said such cash dealings can't be treated as “legally enforceable debts.” 

The presumption under Section 139 NI Act still applies but can be rebutted. The ruling will apply prospectively, except where the issue has already been raised in pending cases. 

(P.C. Hari v. Shine Varghese and Anr)

Read Order / 22 days ago

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Himachal Pradesh High Court Orders Enquiry Against Lawyer for Misusing Client’s Signature
Himachal Pradesh High Court Orders Enquiry Against Lawyer for Misusing Client’s Signature

The Himachal Pradesh High Court has ordered an enquiry against an advocate accused of misusing a client’s signature to withdraw an application without proper authorisation.

A widow accused her lawyer of fraudulently withdrawing ₹4.16 lakh Motor Accident Claim Tribunal compensation by misusing her signature on blank documents and filing an unauthorised withdrawal affidavit.

Taking serious note of the alleged breach of professional ethics, the Court directed the Chairman, Bar Council of Himachal Pradesh, as well as the Superintendent of Police, Shimla, to conduct a detailed enquiry and submit a report in a time-bound manner. The matter will be listed for further orders on September 10, 2025.

(Rama Devi & Others. v. Shri Ram General Insurance)

Read Judgement / 25 days ago

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Chanda Kochhar Found Guilty of Bribery in ₹64 Crore Videocon Loan Case: Appellate Tribunal Upholds ED Action
Chanda Kochhar Found Guilty of Bribery in ₹64 Crore Videocon Loan Case: Appellate Tribunal Upholds ED Action

A PMLA appellate tribunal has found former ICICI Bank CEO Chanda Kochhar guilty of receiving a ₹64 crore bribe in exchange for sanctioning a ₹300 crore loan to the Videocon Group. 

The tribunal noted the bribe was routed to her husband Deepak Kochhar’s firm, NuPower Renewables, a day after the loan was disbursed. The appellate tribunal upheld the Enforcement Directorate’s attachment of the Kochhars’ assets and criticised a 2020 adjudicating authority decision to release them. 

The Tribunal held the ED had provided strong documentary evidence and statements recorded under Section 50 PMLA, which were legally admissible.

The tribunal found strong evidence of quid pro quo, misuse of position, and breach of ICICI Bank's rules. 

Read Details / 26 days ago

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Supreme Court Clarifies: Tenant’s SARFAESI Protection Depends On Establishing Pre-Mortgage Tenancy
Supreme Court Clarifies: Tenant’s SARFAESI Protection Depends On Establishing Pre-Mortgage Tenancy

The Supreme Court held that tenants cannot claim protection under the SARFAESI Act unless they prove their tenancy existed before the property was mortgaged.

The case involved PNB Housing Finance taking possession of a property after the borrower defaulted. A tenant who claimed to be living there since 1987 couldn’t produce proof showing the tenancy predated the 2017 mortgage.

The Court overturned a Calcutta High Court order that had restored possession to the tenant, holding that oral agreements or unregistered leases aren’t enforceable under the SARFAESI Act.

The court reaffirmed that tenants must present clear evidence, like rent receipts or tax bills, to resist eviction. (PNB Housing Finance Limited vs. Sh. Manoj Saha & Anr.)

Judgement Copy / 27 days ago

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Writ Jurisdiction Can't Be Invoked When Party Has Already Approached DRT Under SARFESI Act : Delhi High Court
Writ Jurisdiction Can't Be Invoked When Party Has Already Approached DRT Under SARFESI Act : Delhi High Court

The Delhi High Court ruled that a writ petition under Article 226 of the Constitution cannot be invoked when the Debt Recovery Tribunal (DRT) is already examining a One-Time Settlement (OTS) proposal between a borrower and a bank.

The bench dismissed the plea of a borrower who challenged the classification of his account as a Non-Performing Asset (NPA) and claimed violation of RBI guidelines.

The Court held that since the DRT was already seized of the matter and deliberating on the OTS, the High Court should not intervene using its writ jurisdiction.

27 days ago

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Delhi High Court Quashes CBI Order Directing Bentley Dealer to Furnish ₹50 Lakh Demand Draft
Delhi High Court Quashes CBI Order Directing Bentley Dealer to Furnish ₹50 Lakh Demand Draft
  • Case Name: Exclusive Motors Pvt Ltd v CBI

The Delhi High Court has set aside a CBI directive asking Bentley dealer Exclusive Motors to furnish a ₹50 lakh demand draft to the central agency in connection with a case involving Samruddha Jeevan Foods.

The company had paid the amount as an advance for a Bentley car, but later defaulted, leading to forfeiture of the sum. 

Justice Neena Bansal Krishna held that a demand draft isn’t a “document” under Section 91 CrPC, which only covers existing documents or items.

The Court noted that CBI’s order was like a recovery and not the production of documents for investigation or trial as envisaged under the CrPC. The CBI’s request was, therefore, invalid, and the order was quashed. 

Read Order / 29 days ago

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Bank Must Prove Customer’s Liability in Unauthorized Transactions: Allahabad High Court
Bank Must Prove Customer’s Liability in Unauthorized Transactions: Allahabad High Court

The Allahabad High Court ruled that in cases of unauthorised electronic banking, the burden to prove a customer’s liability lies on the bank, as per the RBI’s June 6, 2017 circular.

However, in a case involving a father-son duo, the Court found no evidence of cyber fraud. The petitioners alleged embezzlement after transferring ₹37.85 lakh but failed to report it promptly. The Court, after reviewing IP logs and transaction details, noted that they were aware of the transactions.

The court dismissed the petition, clarifying that the RBI circular protects genuine/bona fide victims, not those attempting to misuse it for personal disputes.

Read Order / 30 days ago

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Can a Passenger in a Vehicle Claim Under Third-Party Insurance? Supreme Court Refers to Larger Bench
Can a Passenger in a Vehicle Claim Under Third-Party Insurance? Supreme Court Refers to Larger Bench
  • Case Name: The Divisional Manager v Radha Santhosh & Ors

The Supreme Court of India has referred to a larger bench the legal question of whether a passenger travelling in a private vehicle can claim compensation under a third-party insurance policy in motor accident cases. 

A bench comprising Justices Justice Pankaj Mithal and Justice PB Varale observed that there is a conflict in earlier decisions of the Court on this issue.

The Court observed that legal clarity is essential, as it directly affects the rights of accident victims under the Motor Vehicles Act.

The referral aims to resolve whether such passengers are considered “third parties” entitled to insurance coverage in private vehicle accidents.

30 days ago

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Supreme Court Refuses to Entertain PIL on Fraudulent Loan Transactions, Directs Petitioner to Approach RBI
Supreme Court Refuses to Entertain PIL on Fraudulent Loan Transactions, Directs Petitioner to Approach RBI

The Supreme Court has dismissed a PIL seeking a probe into alleged fraudulent loan transfers and the formation of an expert committee to regulate such transactions.

During the hearing, the petitioner's counsel submitted, "People are given personal loans which go much over their income, the EMIs go much over their income...".

During the July 14 hearing, the petitioner withdrew the plea and was directed to approach the Reserve Bank of India (RBI) for appropriate relief.

The Court emphasised that matters related to lending norms and financial transactions fall within the RBI's regulatory purview, not judicial forums. (Usteen Barwa V UOI & Ors)

a month ago

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Delhi High Court Restrains Disclosure of Axis Max Life Insurance Customer Data on Dark Web, Online Platforms
Delhi High Court Restrains Disclosure of Axis Max Life Insurance Customer Data on Dark Web, Online Platforms

The Delhi High Court restrained any disclosure, transmission, or sale of confidential personal data of Axis Max Life Insurance’s 20 lakh customers on online platforms and the dark web.

Justice Saurabh Banerjee passed the interim order in a suit filed by Axis Max Life against unknown entities threatening to publish the data unless paid.

The Court emphasised the serious risk to the company’s brand, customer trust, and regulatory obligations if the data were misused.

The court ordered blocking the defendants’ email accounts and directed them to permanently delete all digital and physical copies of the data, with an affidavit of compliance due in two weeks. The matter will be heard on November 11.

Order Copy / a month ago

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