The week ending February 9, 2025, saw several regulatory updates across taxation, finance, and trade. In Income Tax, amendments to Rule 2F specified conditions for Infrastructure Debt Funds, while liaison offices must now file Form 49C within eight months. The CBDT authorized data sharing for PMGKAY eligibility, and CPC (TDS) issued reminders for pending filings. Court rulings addressed joint property ownership taxation and the exclusive authority of NFAC for Section 148 notices. GST updates included the withdrawal of voluntary E-Way Bill generation for goods under Chapter 71, Aadhaar-based authentication for new GST applicants in Maharashtra and Lakshadweep, and guidelines for appeals against penalties. AAAR rulings clarified GST treatment on takeaway sales and exemptions for data processing services. Customs issued a corrigendum correcting a tariff code. DGFT prohibited De-Oiled Rice Bran exports until September 2025, updated vintage car import policies, and revised Standard Input-Output Norms for various exports. SEBI introduced new algo trading regulations, extended trading window restrictions to relatives of designated persons, and sought feedback on AIF investment norms and secretarial compliance. RBI revised the repo and bank rates, expanded NDS-OM access to non-bank brokers, and proposed additional authentication for international online transactions. The central bank also set up a working group to review trading and settlement hours. These updates reflect ongoing regulatory refinements to ensure compliance and transparency.
Notifications & Circulars issued during week (3rd – 9th Feb 2025)
A. Income Tax
Amendment Rule 2F for Infrastructure Debt Funds (IDFs): Rule 2F provide guidelines for setting up an IDF for the purpose of exemption under section 10(47). The notification specify that IDFs must operate as Non-Banking Financial Companies (NBFCs) in compliance with RBI regulations. Investment by IDFs is restricted to infrastructure projects that have been operational for at least a year or toll-operate-transfer projects as direct lenders. IDFs can raise funds through rupee or foreign currency bonds, zero-coupon bonds, or external commercial borrowings (ECBs), subject to RBI and FEMA regulations. ECB tenors must be at least five years, and funds cannot be sourced from foreign branches of Indian banks. It also introduce restrictions on IDF investments in projects where their significant shareholders or associated enterprises hold substantial interests. (Income Tax Notification 13/2025 Dated 07/02/2025)
Liaison Office Statement Filings: The changes specifically affect the filing requirements for liaison offices. Rule 114DA has been updated to mandate the submission of Form No. 49C within eight months from the end of the financial year. The form now includes a detailed verification section requiring the declarant to confirm the accuracy of the provided details, such as their Permanent Account Number (PAN) or Aadhaar number. (Income Tax Notification 14/2025 Dated 07/02/2025)
CBDT authorised DGFT (system) to shares taxpayer data for PMGKAY eligibility: The order under Section 138(1)(a) authorises Director General of Income-tax (Systems), New Delhi for furnishing information to Joint Secretary to Government of India, Department of Food and Public Distribution (DFPD), Ministry of Consumer Affairs, Food & Public Distribution as notified by Notification No. 12 /2025 dated 30th January 2025. This collaboration aims to identify eligible beneficiaries under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). (Income Tax CBDT Order dated 07/02/2025)
CPC (TDS) Reminder Communication to Deductor-TDS Statement filed for 26Q Quarter-2 FY 2023-24, not filed yet for Quarter 2 FY2024-25: While records show that the statement was filed for Q2 FY 2023-24, it remains pending for the current fiscal year as of January 24, 2025. Deductors must file the applicable statement or submit a declaration of non- filing via the TRACES portal. Non- compliance with the provisions of Section 200(3) read with Rule 31A, may result in penalties under Section 234E at the rate of ₹200 per day of delay. Such delays also hinder deductees from claiming TDS credits and obtaining TDS certificates, which are valid only if downloaded from TRACES. (Income Tax CPC(TDS) Reminder Dated 08/02/2025)
HC, Assuming joint ownership and taxing income without proving beneficial interest not tenable: Case of Shivani Madan vs PCIT, Delhi HC Judgement Dated 8th January 2025. The appellant explained that the property is essentially owned by the spouse and that her name appears in the instrument solely for and in light of a contribution of INR 20,00,000/-, which was paid by her in AY 2011-12. This explanation was not accepted by the AO, who proceeded to hold that the property would be liable to be viewed as being jointly owned in equal share by the appellant and her spouse and thus taxed the income from house property accordingly. HC held that deeming income from house property @50% merely on the assumption that assessee was signatory to the instrument is untenable in law since assessee doesn’t own beneficial interest in the property. (HC Delhi Judgement Dated 08/01/2025)
HC, NFAC has exclusive power to issue Income Tax Section 148 notice: Case of Gurjinder Singh vs Union of India, HC P&H Judgement Dated 9th January 2025. HC ruled that reopening notices issued by the Jurisdictional Assessing Officer (JAO) under Section 148, were invalid. The petitioner challenged the notices citing a CBDT notification dated 29th March 2022, which mandates that only the National Faceless Assessment Centre (NFAC) has the authority to issue Section 148 notices. The court quashed the notices and order, directing the revenue authorities to follow the prescribed procedure under the Act if they wished to proceed further. (HC P&H Judgement Dated 09/01/2025)
B. GST
Advisory on E-Way Bili generation for Goods under Chapter 71: The goods covered under Chapter 71 viz., Natural or cultured pearls and precious or semi-precious stones; precious metals and metals clad with precious metal, Jewellery, goldsmiths’, and silversmiths’ articles, except those classified under HSN 7117(Imitation Jewellery), are exempt from the mandatory requirement of generating an E-Way Bill. The facility for voluntary generation of EWB previously allowed for goods under Chapter 71 has now been withdrawn. However, for the intrastate movement of such goods within the state of Kerala, the generation of an EWB has been mandated vide Notification No.10/2024-State Tax dated 27th December 2024. An advisory dated 27th January 2025 has already been issued in this regard. (GSTN Advisory Dated 06/02/2025)
Advisory on Biometric-based Aadhaar authentication and document verification for GST registration applicants of Maharashtra and Lakshadweep: CGST rule was amended which provide for identification of applicants on biometric- based Aadhaar authentication, which includes taking the applicant’s photograph and verifying the original documents submitted with the application. The new functionality mandates that after submitting Form GST REG-01, applicants will receive an email with either a link for OTP-based Aadhaar Authentication or a link to book an appointment at a GST Suvidha Kendra (GSK). It has been rolled out in Maharashtra and Lakshadweep effective from 8th February 2025. (GSTN Advisory Dated 08/02/2025)
Procedure to be followed in department appeal filed against interest and/or penalty only, related to Section 128A of the CGST Act: Section 128A read with Rule 164 provides waiver of interest or penalty or both, relating to demands under section 73 Act pertaining to Financial Years 2017-18, 2018-19 and 2019-20, subject to certain conditions. It is decided that in cases where the tax amount has been fully paid by the taxpayer on demands made under section 73 of the CGST Act and the department is in appeal or under the process of filing an appeal only on account of wrong interest calculation and/or wrong imposition or non-imposition of penalty amount, and the taxpayer fulfils other conditions of section 128A and the rules made thereunder, the proper officer may proceed towards withdrawing such appeal filed and in case where the order under section 73 is under review stage only, accept the same. (CGST Instructions 02/2025 Dated 07/02/2025)
AAAR, GST on Takeaway vs Restaurant Sales including pre-packaged food purchased from external vendors: Case of Riddhi Enterprises, AAAR Gujarat Dated 22nd January 2025. The appellant, engaged in the restaurant business, prepared and sold food items for dine-in and takeaway but also sold pre-packaged food purchased from external vendors. They contended that all sales, including pre-packaged items, should be classified under “restaurant services” with 5% GST and no input tax credit (ITC). However, AAR ruled that only food prepared in the restaurant qualifies as restaurant service, while pre-packaged food sold over the counter is a supply of goods, attracting applicable GST with ITC benefits. AAAR upheld the ruling, and concluded that pre-packaged food purchased from the market and sold directly is distinct from restaurant service and should be taxed accordingly. (AAAR Gujarat Ruling Dated 22nd January 2025)
AAAR, GST exemption on Data Processing services to GPSC and GPSSB: Case of Data Processing Forms Pvt Ltd, AAAR Gujarat Ruling Dated 22nd January 2025. The company, engaged in printing and data processing services, had sought exemption under entries 3 and 3A of Notification 12/2017 for services provided to the Gujarat Public Service Commission (GPSC) and the Gujarat Panchayat Service Selection Board (GPSSB). The appellant argued that its services should be considered exempt as they were provided to a government authority or a local authority.
— The services to GPSSB involved a composite supply of goods and services, disqualifying them from being classified as “pure services” required under the exemption. Moreover, it was determined not to be a local authority, nor was it considered a part of the central or state government. The services provided to GPSC, which included ICR/OCR/OMR scanning, data capture, and result processing, were not eligible for exemption. It also did not meet the criteria of a “State Government” or a “local authority.” AAAR upheld the ruling. (AAAR Gujarat Ruling Dated 22/01/2025)
AAAR, GST Classification of Instant Mix Flours: Case of Ramdev Food Products Pvt Ltd, AAAR Gujarat Ruling Dated 22nd January 2025. The appellant contended that these mixes retained their identity as flours and should attract a GST rate of 5%. AAR classified these products under HSN 2106, imposing an 18% GST rate, considering that inclusion of additives like spices and flavoring agents, altered the essential character of the product from flour to a food preparation. It highlighted that the products were labeled as “instant mix,” indicating their readiness for cooking with minimal preparation, and hence were not merely flours. AAAR upheld the classification under HSN 2106, maintaining the 18% GST rate. (AAAR Gujarat Ruling Dated 22/01/2025)
AAAR, GST not Payable on liquidated damages for breach of exploration obligations: Case of GSPC (JPDA), AAAR Gujarat Ruling Dated 22nd January 2025. The case involved the termination of a Production Sharing Contract (PSC) for petroleum exploration in the Joint Petroleum Development Area (JPDA) shared by Timor-Leste and Australia. AAR had ruled that the settlement payment of USD 80 million, representing GSPC’s share, was subject to GST under the reverse charge mechanism, considering that the payment was for services provided by ANP to GSPC, rather than compensation for breach of contract. GSPC contested the ruling, arguing that the payment arose due to a breach of PSC terms and not as consideration for any service. AAAR overturned the decision, ruling that GST was not applicable to the amount paid. (AAAR Gujarat Ruling Dated 22/01/2025)
AAAR, Inclusion of sharpeners & erasers with pencil kits is mixed supply: Case of DOMS Industries Pvt Ltd, AAAR Gujarat Ruling Dated 22nd January 2025. AAAR upheld the ruling that the supply was mixed and should be taxed accordingly. The stationery kits, which include sharpeners, would attract a 12% GST rate, determined by the item with the highest tax rate among the included goods. (AAAR Gujarat Ruling Dated 22/01/2025)
C. Central Excise
No Notification/ Circular during the week.
D. Custom Duty
New Cargo Facility at Rajkot, Gujarat: The notification adds Rajkot, Gujarat, to the list of locations for the unloading of imported goods and loading of export goods or any class of such goods. (Custom Notification 09/2025 (NT) Dated 07/02/2025)
Adjudication Commissioner Appointed for Mundra Cases: The notification appoints the Commissioner of Customs (Adjudication), Mumbai, to exercise powers and discharge duties assigned to the Additional Commissioner of Customs (Import), Mundra, Gujarat. This delegation pertains to adjudication of the supplementary notice involving Shri Nisar Pallathukadavil Aliyar and 29 others. (Custom Notification 08/2025 (NT) Dated 04/02/2025)
Corrigendum to Customs Notification No. 50/2024 Dated 30th December 2024: The correction pertains to a typographical error in the tariff item listed in the notification. As per the revised details, in the table under serial number (4), the tariff code 20042110 has been corrected to 22042110. (Notification (T) 50/2024 Corrigendum dated 03/02/2025)
HC, Seizure of gold bangles worn by foreigner coming to India unjustifiable: Case of Anjali Pandey vs Union of India, Delhi HC Judgement Dated 22nd January 2025. High Court held that gold bangles worn by foreigner coming to India being part of personal effects is not required to be declared. Accordingly, seizure of such gold bangles by customs department is unjustifiable in law. (Delhi High Court Judgement Dated 22/01/2025)
E. Directorate General of Foreign Trade (DGFT)
Amendment in Export Policy of De-Oiled Rice Bran: The export of De-Oiled Rice Bran is ‘Prohibited’ up to 30th September 2025. (DGFT Notification 56/2025 Dated 04/02/2025)
Export of Broken Rice to Senegal through National Cooperative Exports Limited (NCEL): The time period for Export of Broken Rice to Senegal through NCEL has been extended for 1 months up to 28th February 2025. (DGFT Notification 57/2025 Dated 06/02/2025)
Amendment in Import Policy condition for vintage cars: The cars manufactured before January 1, 1950, were free for import by Actual Users, subject to compliance with the Central Motor Vehicles Act. The amendment now classifies vintage motor vehicles as per Rule 81A of the Central Motor Vehicles Rules, allowing their import under similar conditions. The revised policy ensures alignment with existing motor vehicle regulations, for imported vintage cars plying on public roads. (DGFT Notification 58/2025 Dated 07/02/2025)
Amendment in 4.59 of HBP, 2023 and modification in Standard Input Output Norms (SION) M- 1 to M-8 for export of jewellery: The changes specify updated wastage limits for gold, silver, and platinum in handcrafted and mechanized jewellery manufacturing. The allowable wastage for handcrafted gold jewellery is set at 2.25%, while mechanized jewellery is permitted a wastage of 0.90%. These norms apply to various categories, including plain and studded jewellery, ornaments like Mangalsutra, and religious idols of varying carats. As per revised SION, 1 kg of handcrafted plain jewellery requires 1.0225 kg of gold or platinum, while mechanized plain jewellery needs 1.009 kg. Similarly, handcrafted studded jewellery involves 1.04 kg of these metals per kilogram of export. (DGFT Public Notice 45/2025 Dated 04/02/2025)
Amendments in Standard Input Output Norms (SION) A-222 for export of Erythromycin Stearate Tablet: As per the revised norms, each 250 mg Erythromycin Stearate tablet must contain 334 mg of Erythromycin Stearate as an input. For other variants of the export product, input-output norms will be determined on a pro-rata basis. (DGFT Public Notice 46/2025 Dated 06/02/2025)
Amendments in conditions of the Standard Input Output Norms (SION) at E-136 for export of Wheat Flour: The revised conditions require the export item to contain at least 60% wheat flour and 15% millets. Wheat import entitlement under the Advance Authorization scheme will be based on the wheat flour content, with 1.07 kg of wheat allowed for every 1 kg of wheat flour exported. Additionally, millets and other ingredients must be sourced domestically, and export declarations must specify ingredient percentages. (DGFT Public Notice 47/2025 Dated 07/02/2025)
F. Securities and Exchange Board of India (SEBI)
Safer participation of retail investors in Algorithmic trading: SEBI has issued new guidelines to regulate algorithmic (algo) trading by retail investors, outlines the responsibilities of brokers, exchanges, and algo providers. Brokers must act as principals, ensuring all algo orders are tagged with unique identifiers. Retail investors developing their own algos must register them if they exceed a specified order-per-second threshold. Brokers are responsible for API security, implementing authentication measures, and handling investor grievances. Exchanges must supervise algo trading, set empanelment criteria for algo providers, and ensure compliance through surveillance and audits. Two types of algos are defined—Execution (White Box) and Non-Disclosed (Black Box), with additional requirements for black-box algos, including Research Analyst registration. The the new regulations will take effect on 1st August 2025. (SEBI Circular dated 04/02/2025)
Draft Circular on Extension of automated implementation of trading window closure to Immediate Relatives of Designated Persons: It proposes the extension of automated trading window closure to immediate relatives of designated persons. Previously, SEBI introduced a system to freeze PANs at the security level for designated persons during trading window closure periods, initially for NIFTY 50 and SENSEX-listed companies and later extended to all listed companies. With the framework proving effective, SEBI now proposes its extension to immediate relatives of designated persons, defined under PIT Regulations as spouses, dependent parents, siblings, or children who consult on trading decisions. The comments/ suggestions from stakeholders are invited. (SEBI Draft Circular Dated 07/02/2025)
Draft Circular on Management Statement and Auditor’s / Independent Practitioner’s Report on digital assurance based on information obtained from external data repositories: It relates to the requirement of a separate report on digital assurance for financial statements. This report will be based on information obtained from external data repositories and aims to enhance transparency in financial disclosures by listed companies. The management must provide access to external data and ensure compliance with the LODR Regulations. Auditors will be responsible for verifying the financial data and ensuring that the report aligns with the company’s books. The proposal mandates this digital assurance report for the top 100 listed companies by market capitalization, starting from the fiscal year 2024-25, with submissions required by July 31st each year. The comments/ suggestions from stakeholders are invited. (SEBI Draft Circular Dated 03/02/2025)
Consultation Paper on review of Regulation 17 (a) of SEBI Alternative Investment Funds (AIF) Regulations: Currently, these funds are required to invest primarily in unlisted securities. However, amendments to the SEBI LODR Regulations, mandating the listing of certain debt securities, could limit unlisted debt investment options. SEBI now proposes allowing Category II AIFs to allocate over 50% of their investible funds to a mix of unlisted securities and listed debt securities rated ‘A’ or below, to align with their risk profile and market role. The comments/ suggestions from stakeholders are invited. (SEBI Consultation Paper Dated 07/02/2025)
Consultation Paper on aspects relating to secretarial compliance report, appointment of auditors, and related party transactions of a listed entity: The key proposals include revising the Annual Secretarial Compliance Report (ASCR) format for better compliance monitoring, specifying eligibility criteria for statutory auditors, and mandating disclosures at various levels for auditor appointments. The proposals facilitate ease of Related Party Transactions (RPT) approvals by subsidiaries and clarifying RPT provisions. It proposes amendments to SEBI’s LODR and Share-Based Employee Benefits and Sweat Equity Regulations. The comments/ suggestions from stakeholders are invited. (SEBI Consultation Paper Dated 07/02/2025)
G. Ministry of Corporate Affairs (MCA)
No Notification/ Circular during the week.
H. Insolvency and Bankruptcy Board of India (IBBI)
Amendments to IBBI Insolvency Resolution Process for Corporate Persons Regulations: The key changes include provisions for handing over possession in real estate projects, requiring resolution professionals to facilitate the transfer of properties upon approval by 66% of the creditors. The amendments also relates to appointment of facilitators, participation of competent authority in real estate projects, report on real estate development rights and permissions, relaxations for real estate allottees, monitoring committee for implementation of resolution plan and MSME registration status. (IBBI Notification Dated 03/02/2025)
NCLAT, Insolvency application maintainable against Personal Guarantor under section 60(1) even if there was absence of pending CIRP against CD: Case of Anita Goyal vs Vistra ITCL, NCLAT Delhi Judgement Dated 23rd January 2025. Even in cases where NCLT had not yet started or was in the process of liquidating a corporate debtor, an application under section 95 of IBC against the personal guarantor might be maintained before the NCLT under section 60(1) of the code. The view that NCLT had no jurisdiction to entertain Section 95 application filed by the Financial Creditor and the application ought to have been filed before the DRT was not valid. (NCLAT Delhi Judgement Dated 23/01/2025)
NCLAT, Liquidation withdrawal allowed if CoC permits CIRP time extension: Case of Ramesh Jadhav vs Vakati Balasubramanayam Reddy, NCLAT Judgement Dated 28th January 2025. The appellant contended that the Adjudicating Authority had permitted the withdrawal of the liquidation application without a CoC resolution, making the decision invalid. However, NCLAT noted that the CoC had passed a resolution to extend the Corporate Insolvency Resolution Process (CIRP) period by 90 days and filed an application for the same, which was duly approved. The CoC had also voted in favour of issuing a revised Form G to invite fresh resolution applicants. The tribunal ruled that the CoC’s decision justified the withdrawal of the liquidation application, and there was no procedural lapse. (NCLAT Delhi Judgement Dated 28/01/2025)
NCLAT, CoC decision to liquidate accepted as Corporate Debtor has no assets: Case of Amrit Rajni vs Pegasus Assets Reconstruction Private Limited, NCLAT Delhi Judgement Dated 23rd January 2025. The tribunal held that CoC decision to liquidate the Corporate Debtor is acceptable as corporate debtor has no assets and thus CIRP period only implies zero returns. Thus, adjudicating authority order accepting liquidation upheld. (NCLAT Delhi Judgement Dated 23/01/2025)
NCLAT, Liquidation proceeds to be distributed in proportion to admitted claim of secured creditors: Case of State Bank of India vs IDBI Bank Limited, NCLAT Delhi Judgement Dated 28th January 2025. The tribunal held that distribution of liquidation proceeds has to be in proportion to the admitted claim of secured creditors as per section 53(1) of IBC and the same cannot be on the basis of security interest of different secured creditors. (NCLAT Delhi Judgement Dated 28/01/2025)
IBBI suspends registration of Anil Kumar Mittal IP charging fees of 18 lakh against admitted claim of ₹10 lakh: The total admitted claim was ₹10 lakh, but Anil Kumar Mittal IP claimed CIRP costs of Rs 19.9 lakh, including Rs 18 lakh as his fee. The NCLAT had criticized this fee structure, finding it disproportionate to the claims and lacking justification. It ordered no additional fees beyond ₹8 lakh due to the slow progress of the CIRP. The disciplinary committee concluded that he had failed to exercise restraint and had violated professional conduct provisions, and suspends his registration for a period of one year. (IBBI Order Dated 04/02/2025)
IBBI suspends registration of Akash Singhal IP for contravention of IBC provisions and code of conduct: The disciplinary committee concluded that he had contravened IBC provisions and violated code of conduct, and suspends his registration for a period of three year. (IBBI Order Dated 06/02/2025)
I. Reserve Bank of India (RBI)
Liquidity Adjustment Facility – Change in rates: It has been decided by the Monetary Policy Committee (MPC) to reduce the policy repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 6.50 per cent to 6.25 per cent with immediate effect. Consequently, the standing deposit facility (SDF) rate and marginal standing facility (MSF) rate stand adjusted to 6.00 per cent and 6.50 per cent respectively, with immediate effect. (RBI Notification 109/2025 Dated 07/02/2025)
Standing Liquidity Facility for Primary Dealers: The Standing Liquidity Facility provided to Primary Dealers (PDs) (collateralised liquidity support) from the Reserve Bank would be available at the revised repo rate of 6.25 per cent with immediate effect. (RBI Notification 110/2025 Dated 07/02/2025)
Change in Bank Rate: The Bank Rate is revised downwards by 25 basis points from 6.75 per cent to 6.50 per cent with immediate effect. All penal interest rates on shortfall in reserve requirements, which are specifically linked to the Bank Rate, also stand revised. (RBI Notification 111/2025 Dated 07/02/2025)
Access of SEBI-registered non-bank brokers to Negotiated Dealing System – Order Matching (NDS-OM) platform: The NDS-OM is an electronic trading platform for secondary market transactions in government securities. Access to NDS-OM was available to regulated entities and to the clients of banks and standalone primary dealers. With a view to widening access, RBI has updated the access criteria for NDS- OM platform, allowing SEBI-registered non-bank brokers to facilitate retail investor trades in government securities. Now, eligible entities, including banks, financial institutions, mutual funds, pension funds, and insurance companies, can access NDS-OM directly, while others may participate through indirect access or Stock Broker Connect. (RBI Master Directions 127/2025 Dated 07/02/2025)
Draft Directions, Additional Factor of Authentication (AFA) for cross border Card Not Present (CNP) transactions: The requirement of AFA, at present, is mandatory for domestic transactions only. It is proposed to enable AFA for international card not present (online) transactions as well. The draft requires a card issuer to validate AFA for non-recurring cross- border CNP transaction, whenever a request for AFA is raised by the overseas merchant or the overseas acquirer. The comments/ suggestions from stakeholders are invited. (RBI Draft Directions Dated 07/02/2025)
Working Group on Comprehensive review of trading and settlement timings of markets regulated by the RBI: Over the last few years, there have been several developments including increased electronification of trading, availability of forex and certain interest rate derivative markets on a 24X5 basis, increased participation of non-residents in domestic financial markets and availability of payment systems on a 24X7 basis. RBI announced the setting up of a Working Group to undertake a comprehensive review of trading and settlement timings of markets regulated by RBI. (RBI Press Release Dated 07/02/2025)
J. Miscellaneous
SC, Illegal termination of employment is a civil dispute, not criminal intimidation: Case of Madhushree Datta vs State of Karnataka, SC Judgement Dated 24th January 2025. The apes court held that illegal termination of employment constitutes a civil dispute rather than criminal intimidation. Accordingly, appeal allowed and chargesheet against the appellants are quashed. (SC Judgement Dated 24/01/2025)
SC, Criminal acquittal did not automatically clear someone in a workplace disciplinary action, minor penalty was imposable: Case of General Manager Personnel Syndicate Bank vs BSN Prasad, SC Judgement Dated 21st January 2025. The apex court concluded that respondent had already reached the age of superannuation and he worked under pressure, penalty of dismissal was disproportionate to the misconduct established against the respondent and his unblemished career for a long time. However, fact remains that the misconduct alleged and proved against the respondent was of a serious nature considering the fact that a very high standard of conduct was expected from a branch manager of a Bank. In view of the facts of case, a minor penalty, as provided in Regulation 4(e) of the Disciplinary Regulations, would be appropriate. (SC Judgement Dated 21/01/2025)
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