Posted On - 25 March, 2025

AL Insights – February 2025

This monthly legal roundup is a compilation of our thought leadership articles published in the month of February 2025 on key legal and regulatory topics. Please download the PDF or click on the access links to read more.

Delhi High Court Ruling: Charge Holders can now register Charges without Company’s Digital Signature

The Delhi High Court's ruling in Union of India v. Alliage Engineering permits charge holders to register charges without the company's digital signature under Section 78 of the Companies Act, 2013.

Specific Due Diligence for AIF Investors and Investments

SEBI's 2024 circular outlines specific due diligence measures for investors and investments in Alternative Investment Funds (AIFs). AIF managers and key personnel must verify investor eligibility, particularly for Qualified Institutional Buyers (QIBs) and Qualified Buyers (QBs) and ensure compliance with regulations regarding asset classifications and stressed loans.

Decoding the Foreign Exchange Regulations 2025 Amendments: RBI’s Step Towards Rupee Internationalization

The RBI's 2025 amendments to the Foreign Exchange Regulations aim to promote the use of the Indian Rupee (INR) in global transactions. Key changes include allowing NRIs to use Rupee accounts for foreign investments, enabling Indian exporters to hold foreign currency accounts, and expanding the scope of Special Non-Resident Rupee (SNRR) accounts.

Quick Commerce, Slow Compliance? Decoding Food Safety Regulations for EFBOs in India

The rapid growth of food delivery services in India has raised concerns about food safety, leading to new regulations for e-commerce Food Business Operators (EFBOs). The Food Safety and Standards Authority of India (FSSAI) has introduced guidelines to ensure food safety, including mandatory training for delivery staff, proper food handling, and hygiene practices.

Key Amendments to RBI’s Master Directions on Foreign Investment

The RBI's amendments to the Master Directions on Foreign Investment provide greater clarity for Foreign Owned and Controlled Companies (FOCCs) regarding downstream investments, deferred payment arrangements, and the filing of Form DI.

Supreme Court: No Vicarious Liability on Directors

The Supreme Court's ruling in Sanjay Dutt & Anr. v. State of Haryana clarifies that directors cannot be held vicariously liable for corporate offenses without direct involvement. The court emphasized that unless a statute expressly provides for vicarious liability, directors cannot be blamed merely for their supervisory role.

Extension of Deadline for Dematerialisation of Securities

The Ministry of Corporate Affairs has extended the deadline for private companies to dematerialize their securities to June 30, 2025, from the earlier September 2024 deadline.

Clearing the Air: Consent Guidelines for Air Pollution, 2025

The Ministry of Environment, Forest, and Climate Change introduced the 2025 Consent Guidelines for industrial plants that may cause air pollution. These guidelines outline processes for obtaining, renewing, and potentially losing consent, with incentives for timely renewals and penalties for delays.

Decoding Budget 2025 – Tax and Legal Insights

The 2025 - 2026 Union Budget introduces several key tax reforms. Direct tax proposals include a higher personal income tax rebate and streamlined withholding tax provisions, reducing compliance burdens. The budget also clarifies the taxation of investment funds and business trusts, including REITs and AIFs, by treating their securities as "capital assets."

Delhi High Court GST Judgment: A Game-Changer for Regulatory Commissions!

The Delhi High Court ruled that fees collected by the Central Electricity Regulatory Commission and Delhi Electricity Regulatory Commission for regulatory functions are not subject to GST. The court emphasized that these commissions, performing statutory duties, are not engaged in business activities, and their fee collections are not considered a commercial supply of services.

Assignment of leasehold rights in an immovable property – GST not leviable

The Gujarat High Court ruled that GST is not applicable on the assignment of leasehold rights in immovable property. The court clarified that such assignments are considered a transfer of immovable property, which falls outside the scope of GST.