bruary 2nd, 2025, several significant notifications and circulars were issued across various sectors. Key amendments to income tax rules were introduced for venture funds and finance companies in International Financial Services Centres (IFSCs), while tax deductions were clarified for Shri Chaitanya Health and Care Trust. The CBDT allowed income tax data sharing for PMGKAY beneficiaries, and specific income tax systems were declared protected under the IT Act. GST updates included clarifications on co-insurance premiums, penalties, exemptions, and GST rates for services. The extension of deadlines for certain excise duties and import regulations were also noted. The Customs department revised the tariff values for various products, while new cargo facilities were established in Rajasthan. In insolvency, several amendments to liquidation processes and grievance handling regulations by IBBI were introduced. Additionally, RBI set new guidelines for NCDs issued by Housing Finance Companies, and updates were made to penalties for payment system violations. The introduction of the Unified Pension Scheme for Central Government employees, set to launch in April 2025, also featured prominently.
A. Income Tax
Amendments in Income Tax Rules for Venture Funds & Finance Companies: The key amendments include the addition of Rule 2DAA, specifying that venture capital funds under Section 10(23FB) are to be regulated as Category I Alternative Investment Funds within International Financial Services Centres (IFSCs). Rule 21ACA outlines permitted activities for finance companies in IFSCs, such as lending, factoring, and treasury management, with the condition that interest payments to non-residents must be in foreign currency. Rule 21AIA introduces conditions for retail schemes and exchange-traded funds (ETFs) under Section 10(4D). Retail schemes must maintain specific diversification limits, while ETFs must be listed on recognized stock exchanges and adhere to IFSC regulations. (Income Tax Notification 10/2025 Dated 27/01/2025)
Shri Chaitanya Health and Care Trust for its unit ‘Bhaktivedanta Hospital & Research Institute’, Thane, notified under section 35(1)(ii) for Scientific Research: The notification notifies Shri Chaitanya Health and Care Trust for its unit ‘Bhaktivedanta Hospital & Research Institute’, Thane, Maharashtra, for Scientific Research under the category of University, college or other institution, for the purposes section 35(1)(ii) of the Income-tax Act, read with rules 5C and 5E of the Income-tax Rules. This section allows for deduction equal to one and half times while computing taxes for expenses relating to scientific research. (Income Tax Notification 11/2025 Dated 27/01/2025)
CBDT allows Income Tax data sharing for PMGKAY beneficiaries: The notification permit the sharing of income tax data with the Department of Food and Public Distribution (DFPD) to be used for identification of eligible beneficiaries under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), a food security program aimed at providing free food grains to disadvantaged sections of society. The authorization is granted under Section 138(1)(a)(ii), specifies that the Joint Secretary of the Government of India in the DFPD is designated to receive this information. (Income Tax Notification 12/2025 Dated 30/01/2025)
Income Tax systems declared protected under Information Technology (IT) Act: The specific computer resources of the Directorate of Income Tax (Systems) have been declared as protected systems under Section 70 of the IT Act. The protected systems include the TRACES web portal, e-filing infrastructure, the Income Tax Business Application (ITBA), and Project Insight databases, all critical for tax processing, compliance, and data management. Access to these systems is restricted to authorized personnel, including designated employees, contracted service providers, third-party vendors, consultants, auditors, and government officials. (Fin Min Notification dated 28/01/2025)
B. GST
Regularizing payment of GST on co-insurance premium and on ceding /re-insurance commission: The apportionment of co- insurance premiums by the lead insurer to co-insurers and ceding or reinsurance commissions deducted from premiums paid by insurers to reinsurers, have been added to Schedule III of the CGST Act. Now, these activities are deemed neither a supply of goods nor services, provided applicable taxes on the gross amounts are paid by the lead insurer or reinsurer, as required. (CGST Circular 244/2025 Dated 28/01/2025)
Clarifications on Penal Charges, Exemptions & GST on certain Services: The key highlights include: no GST on penal charges levied by regulated entities as per RBI’s directions replacing penal interest; GST exemption extended to Payment Aggregators handling card transactions below ₹2,000; regularization of GST on R&D services provided by government entities against grants from 2017–2024. Exemptions for skilling services by NSDC-approved training partners have been reinstated for past and future compliance. Facility management services provided to the MCD Headquarters are taxable. The Delhi Development Authority (DDA) is clarified not to qualify as a “local authority” under GST law. Taxpayers under composition levy are excluded from reverse charge GST on renting commercial property from unregistered persons, with interim payments regularized. Finally, incidental services related to electricity transmission or distribution utilities are exempt. (CGST Circular 245/2025 Dated 28/01/2025)
Clarification on applicability of late fee for delay in furnishing of FORM GSTR-9C: The circular explains that if the reconciliation statement is required and not filed along with the annual return, the return is incomplete, and late fees are applicable. It further clarifies that late fees are not separately levied for the delayed filing of FORM GSTR-9 and FORM GSTR-9C, but calculated for the entire period until the complete annual return is filed. Moreover, a notification waives the late fees for delayed filings of FORM GSTR-9C for the financial years up to FY 2022-23, provided the reconciliation statement is submitted by March 31, 2025. (CGST Circular 246/2025 Dated 30/01/2025)
Corrigendum to Notification 05/2025 relating to GST Rate Changes for Hotels and Restaurant Services: The notification 05/2025 Dated 16th January 2025, links the GST rate for restaurant services in hotels to the value of hotel accommodation supplied in the previous financial year. If the accommodation exceeds Rs 7,500 per unit per day, the GST rate for restaurant services will be 18% with Input Tax Credit (ITC), and 5% without ITC otherwise. It also allows hotels to opt for 18% GST with ITC for restaurant services, provided they file a declaration before the start of the financial year or upon registration. The corrigendum now issues, makes certain modifications to page 9 and 10 of the notification: (i) replacing “ii” with “i” on line 2 of page 9; (ii) updating references from “See para 4(xxxvi)” to “See para 5(xxxvi)” on lines 18 and 41 of page 9, and line 13 of page 10. (IGST Notification 05/2025 Corrigendum Dated 31/01/2025)
Advisory on the Introduction of E-Way Bill (EWB) for Gold in Kerala State: It is hereby informed that a new option for generating E-Way Bills (EWB) for gold has been introduced in the EWB system, effective from January 20, 2025. This feature has been made available to facilitate taxpayers in Kerala State to generate EWB for goods classified under Chapter 71, excluding Imitation Jewellery, for intrastate movement, in compliance with the notification issued by the Government of Kerala. (GSTN Advisory Dated 27/01/2025)
Advisory Hard Locking of auto-populated liability in GSTR-3B: Refer advisory dated 17th October 2024, regarding the restricting the editing of auto-populated liability in GSTR-3B from the January 2025 tax period. In view of various requests received from the trade seeking time for the same, the decision of making non-editable of auto-populated liability in GSTR-3B is currently not being implemented from January tax period, on the GST Portal. (GSTN Advisory Dated 27/01/2025)
Advisory on Biometric-based Aadhaar authentication and document verification for GST registration applicants of Tamil Nadu and Himachal Pradesh: 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 Tamil Nadu and Himachal Pradesh effective from 28th January 2025. (GSTN Advisory Dated 28/01/2025)
SC, Service Tax is not chargeable on reimbursement of expenses: Case of CCGST vs Hindustan Construction Company Ltd, SC Judgement Dated 20th January 2025. The apex court held that service tax cannot be levied on the reimbursement of expenses since such reimbursements lack the necessary service element. (SC Judgement Dated 20/01/2025)
SC, Employees Not Liable to GST Penalty for company’s tax liabilities: Case of Union of India vs Shantanu Sanjay Hundekari, SC Judgement Dated 24th January 2025. The apex court held that authorized signatories of a company cannot be held personally liable for penalties under Sections 122(1-A) and 137 of CGST Act. The High Court had quashed the notice, stating that the GST provisions do not impose vicarious liability on employees for a company’s tax liabilities. It held that the Revenue lacked jurisdiction to adjudicate the notice and deemed the demand against the employee as excessive and unjustified. (SC Judgement Dated 24/01/2025)
C. Central Excise
Extension of date for implementation of Additional Duty on Unblended Diesel: The notification extends the deadline for implementing the additional excise duty relating to High Speed Diesel (HSD), which is intended for retail sale to consumers, not so blended with alkyl esters of long chain fatty acids obtained from vegetable oils, commonly known as bio-diesels as conforming to Bureau of Indian Standards specifications from time to time for blended diesel, to 1st April 2026 instead of earlier 1st April 2025. (Central Excise Notification 01/2025 Dated 01/02/2025)
D. Custom Duty
New Cargo Facility at Kishangarh, Rajasthan: The notification adds Kishangarh, Rajasthan, to the list of locations for the unloading of imported goods and loading of export goods or any class of such goods. (Custom Notification 05/2025 (NT) Dated 28/01/2025)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver: CBDT notified the Tariff Values of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver, which shall come into force w.e.f. 1st February 2025. The tariff value for crude palm oil is set at USD 1109 per metric ton, while gold and silver have tariff values of USD 897 per 10 grams and USD 1001 per kilogram, respectively. The tariff value for areca nuts is fixed at USD 6448 per metric ton. (Custom Notification 06/2025 (NT) Dated 31/01/2025)
Quarterly reporting for importers availing concessional duty benefits: The notification amends Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules. The definition of “quarter” has been introduced as three consecutive calendar months, and all references to “monthly” reporting in the rules have been substituted with “quarterly.” It now requires quarterly submissions instead of monthly, and the timeline for maintaining certain records has been extended from six months to one year. Form IGCR-3 has also been updated to reflect the quarterly reporting requirement. (Custom Notification 07/2025 (NT) Dated 01/02/2025)
Export Duty Reduced on Crust Leather: The notification amends existing notification 27/2011 dated 1st March 2011, the changes primarily relates to reducing export duty on crust leather, which will now attract zero export duty. It amends entries concerning tanned hides and skins of bovine and equine animals, tanned skins of sheep and lambs, and other animal hides, and a new entry, “Crust leather (hides and skins),” has been included with a nil duty rate. (Custom Notification 03/2025 (T) Dated 01/02/2025)
Customs Duty exemptions on rationalized tariff goods: The notification exempts specified goods from customs duty or reduces the duty rate on several categories of items. It include goods such as marble slabs, PVC flex films, bicycles electronic toy parts, and electricity meters, which will now attract a reduced duty of 20%. Waste and scrap of metals like tin, tungsten, cobalt, and others have been entirely exempted from import duties. Certain vehicles, personal-use goods, and dutiable items for passengers in baggage will attract higher rates of up to 70%, while exemptions under earlier notifications remain applicable for specific cases. (Custom Notification 04/2025 (T) Dated 01/02/2025)
Amendments relating to BCD: The notification amends existing notification 50/2017 dated 30th June 2017, relating to Basic Customs Duty (BCD) adjustments for various goods. It include new entries such as frozen fish paste and fish hydrolysate, both subject to a 5% BCD when used for specified manufacturing purposes. The BCD has been reduced on lifesaving drugs, medicines, and diagnostic kits listed under specified categories. It also made changes for industrial goods like components for electric lamps, wood polish materials, and certain parts for wind-operated electricity generators, which now attract revised duties. (Custom Notification 05/2025 (T) Dated 01/02/2025)
Amendments in rates of AIDC to certain goods: The notification amends existing notification 11/2018 dated 1st February 2021, prescribing updated Agriculture Infrastructure and Development Cess (AIDC) rates for various goods. The amendments include new entries and revised rates for several items, such as marble slabs, candles, PVC flex films, footwear, and gold, silver, and platinum findings. The marble slabs now attract 20% AIDC, candles 7.5%, and footwear 18.5%. The PVC flex films, including banners and sheets, are levied at 7.5%. It also amends classifications of goods like electronic components, vehicles, and furniture, with rates ranging from 5% to 70%. (Custom Notification 06/2025 (T) Dated 01/02/2025)
Exemption for specified goods from levy of Social Welfare Surcharge: The notification amends existing notification 11/2018 dated 2nd February 2018, the changes involve product categories including vehicles, jewellery, medical equipment, and electronic items. It introduces new duty rates for goods such as PVC flex films, electric components, and automobiles while omitting certain prior exemptions. It revises duty structures for medical instruments under headings 9018 to 9022. The specific tariff items related to gold, silver, and platinum jewellery, as well as motorcycles and smart meters, are reclassified for duty adjustments. (Custom Notification 07/2025 (T) Dated 01/02/2025)
Amendments relating to Import Duty: The notification amends existing notification 22/2022 dated 30th April 2022, the changes involve removal of multiple serial numbers from Table I, impacting various tariff items. The new serial numbers have been added to Table II, revising import duty rates for goods such as stone materials, candles, PVC products, footwear, and motor vehicles. Some items, including certain plastic and PVC products, now have zero import duty, while motor vehicles, both conventional and electric, are subject to revised tax structures based on their assembly conditions. (Custom Notification 08/2025 (T) Dated 01/02/2025)
Exemption for specific drugs supplied under Patient Assistance Programs by pharmaceutical companies: The notification amends existing notification 16/2017 dated 20th April 2017, and exempts customs duties on specific drugs supplied under Patient Assistance Programs (PAP) run by pharmaceutical companies. The updated list includes Pembrolizumab, Lorlatinib, Ribociclib, and others from companies like MSD Pharmaceuticals, Pfizer, Novartis, AstraZeneca, and Johnson & Johnson. It also incorporates additional drugs like Velaglucerase Alpha and Alectinib, ensuring broader access to life-saving treatments. It covers drugs for cancer, genetic disorders, and other severe health conditions, supplied through PAP initiatives like Key-PAP 1.0, LorbriquaCare, and The Blue Tree. (Custom Notification 09/2025 (T) Dated 01/02/2025)
Changes in BCD rates for mobile parts and telecom equipment: The notification amends existing notification 57/2017 dated 30th June 2017, to change basic customs duty (BCD) rates for inputs and parts used in manufacturing components for cellular mobile phones and high-technology telecom equipment. The duty rate of 2.5% has been replaced with NIL rate under entries 6A, 6B, 6C, and 6D. The serial number 6D’s column was updated to include “Any Chapter” for broader applicability. In serial number 7, The existing 2.5% duty in serial number 7 was also revised to NIL. The item (g) under serial number 20 was substituted to explicitly cover Packet Transport Node (PTN) and Multiprotocol Label Switching- Transport Profile (MPLS-TP) products, related to telecom sector. (Custom Notification 10/2025 (T) Dated 01/02/2025)
Amendments relating to Exemptions for Lithium Battery: The notification amends existing notification 25/2002 dated 1st March 2002, to expand the scope of basic customs duty exemptions for capital goods used in manufacturing lithium-ion batteries. It replaces and adds new entries under Serial No. 69 and introduces Serial No. 69A to accommodate advanced manufacturing processes, and gives an extensive list of machinery and equipment, such as powder dryers, automatic feeding systems, slurry transfer systems, and vacuum pumps, crucial for producing batteries used in mobile phones and electric vehicles (EVs). (Custom Notification 11/2025 (T) Dated 01/02/2025)
Amendments relating to Ammunition classification: The notification amends existing notification 19/2019 dated 6th July 2019, to revise import regulations for specific goods. The term “Ammunition” has been omitted, and a new category is introduced for ammunition related to the listed goods. (Custom Notification 12/2025 (T) Dated 01/02/2025)
Amendment to Import Rules: The notification amends existing notification 153/94, dated 13th July 1994, updates classification references in the table by substituting “chapter 88 or 89” with “chapter 86 or chapter 88 or chapter 89” in the proviso to clause (ii) under serial number 1. It expands the scope of applicable tariff classifications. (Custom Notification 13/2025 (T) Dated 01/02/2025)
Mandatory additional qualifiers in import/export declarations in respect of Synthetic or Reconstructed Diamonds: The previous circular 21/2024 mandated importers and exporters to include additional qualifiers in their declarations for better identification of these goods. However, exporters of Lab Grown Diamonds (HPHT/CVD) weighing less than one carat faced challenges in meeting this requirement, leading to increased dwell time during exports. The now issued circular states that for Lab Grown Diamonds (HPHT/CVD) weighing less than one carat, the declaration of additional qualifiers will be voluntary, while it remains mandatory for all other cases. (Custom Circular 03/2025 Dated 29/01/2025)
E. Directorate General of Foreign Trade (DGFT)
Import Policy of Patrol/surveillance boats & related vehicles revised to “Free”: The import policy for patrol or surveillance boats, air-cushion vehicles, and remote-operated vehicles (89069010), as well as other items under (89069090), has been changed from “Restricted” to “Free” with immediate effect. (DGFT Notification 55/2025 Dated 29/01/2025)
Amendments to HBP, in line with the Implementation of the eCertificate of Origin System: The changes align with the implementation of the eCertificate of Origin (eCoO) system, streamlining the issuance of Non-Preferential Certificates of Origin (CoO). Exporters must now apply online for CoO issuance, replacing the earlier manual processes. Applications require uploading invoices, packing lists, and a fee of ₹200 per certificate. The agencies are now authorized to issue back-to-back Non-Preferential CoOs for goods not of Indian origin, provided documentary evidence is submitted. (DGFT Public Notice 43/2025 Dated 27/01/2025)
Track and Trace System provisions for pharmaceutical exports withdrawn: The Public Notice withdraw Para 2.76 from the Handbook of Procedures relating to procedure for the Track and Trace system for drug formulation exports. The responsibility for implementing the authentication system for drug exports now falls to the Ministry of Health and Family Welfare, in accordance with the provisions under the Drug Rules. ( Public Notice No. 44/2024-25-DGFT | Dated: 31st January, 2025)
Introduction of online module for filing Annual RoDTEP Return (ARR): DGFT has introduced an online module for filing the Annual Remission of Duties and Taxes on Exported Products (RoDTEP) Return. The module is now accessible on the DGFT portal under the ‘Regulations > RoDTEP’ section. To assist exporters, a user guideline along with frequently updated FAQs has been provided on the same portal. (DGFT Trade Notice 27/2025 Dated 29/01/2025)
F. Securities and Exchange Board of India (SEBI)
Development of Web-based portal iSPOT for reporting of technical glitches: SEBI has developed a new web-based portal called iSPOT (Integrated SEBI Portal for Technical Glitches) to streamline the reporting of technical glitches by Market Infrastructure Institutions (MIIs) such as Stock Exchanges, Clearing Corporations, and Depositories. MIIs will be required to submit both preliminary and final Root Cause Analysis (RCA) reports through iSPOT instead of emailing them to SEBI. The portal has been integrated with SEBI’s Intermediary portal for easy access. (SEBI Circular Dated 28/01/2025)
Format of Due Diligence Certificate to be given by the DTs: SEBI has issued due diligence certificate format for debenture trustees (DTs) handling unsecured debt securities. Issuers must now submit due diligence certificates from DTs at two stages: when filing the draft offer document (as per Annex-A) and when submitting the listing application (as per Annex-B). These certificates confirm that disclosures in the offer document are fair, all covenants are included in the debenture trust deed, and required agreements are executed before listing. (SEBI Circular Dated 28/01/2025)
Clarifications on Association of Persons & MIIs with Prohibited Activities: The circular clarify the provisions regarding the association of persons regulated by the Board (including stock exchanges, clearing corporations, and depositories) and their agents with individuals or entities engaged in prohibited activities. Such persons or their agents are prohibited from associating with anyone who provides advice or recommendations on securities without being registered by the Board or makes performance claims about securities unless authorized. The association includes any financial transactions, referrals, or information-sharing related to prohibited activities. These regulations exclude entities involved solely in investor education. (SEBI Circular Dated 29/01/2025)
Guidelines for Performance Evaluation of MIIs and Statutory Committees: The circular emphasizes external evaluations by independent agencies, conducted every three years, and internal annual evaluations. Statutory committees, including Functional, Oversight, and Investment Committees, will be assessed based on roles, meeting effectiveness, and governance, with defined weightages for each criterion. The first external evaluation, covering FY 2024-25, must be completed and reported by September 30, 2025. Internal evaluations must also follow SEBI guidelines, with reports submitted within three months of the fiscal year-end. (SEBI Circular Dated 30/01/2025)
Framework for Monitoring and Supervision of System Audit of Stock Brokers (SBs) through Technology based Measures: Stock exchanges must develop web- based platforms within six months to oversee the entire audit lifecycle, including pre-audit, audit, and post-audit phases. The key measures include capturing geo- locations during auditor visits, standardized audit reporting templates, and the inclusion of third-party vendor compliance. Auditors will undergo eligibility scrutiny, emphasizing independence and qualifications, with reappointment restricted after three consecutive years to ensure impartiality. Exchanges will conduct surprise visits and assess compliance with technical standards, such as logging and monitoring mechanisms and disaster recovery protocols. (SEBI Circular Dated 31/01/2025)
Draft Circular, Investor Charter for Stock Brokers: The Investor Charter outlines investor rights, stockbroker obligations, service timelines, and grievance redressal mechanisms. SEBI is revising the charter, in view of recent developments such as the introduction of the Online Dispute Resolution (ODR) platform and SCORES 2.0. It mandate stock brokers to disclose investor grievances and resolution data on their websites, ensuring better accountability. It emphasizes investor rights, such as access to accurate account statements, clear communication of service charges, and protection against fraudulent schemes. The comments/ feedback from stakeholders is invited. (SEBI Draft Circular Dated 28/01/2025)
Draft Circular for Safe and Efficient Transfers on UPI: SEBI first introduced UPI as a payment mode in 2019, leading to its adoption in various financial processes. However, unregistered entities have misused UPI for unauthorized fund collection, often diverting money for personal gains. The circular proposes a unique UPI address exclusively for registered market intermediaries, enabling investors to verify and direct payments only to authorized entities. This measure is expected to curb fraud, improve transparency, and safeguard investor interests. The comments/ feedback from stakeholders is invited. (SEBI Draft Circular Dated 31/01/2025)
Extension of suspension in trading in seven key Commodities Derivatives: The suspension in trading in derivative contracts has been extended till 31st March 2025, for commodities i.e. Paddy (non-basmati), Wheat, Chana, Mustard seeds and its derivatives (its complex), Soya bean and its derivatives (its complex), Crude Palm Oil, and Moong. (SEBI Press Release Dated 31/01/2025)
G. Ministry of Corporate Affairs (MCA)
MCA Funding Guidelines for Research, Workshops & Conferences under ‘Corporate Data Management’: MCA has introduced funding guidelines for research, workshops, conferences, and similar initiatives under the “Corporate Data Management” scheme. The program facilitates knowledge extraction through external research projects and in-house studies. The proposals evaluation by a Technical Committee, which oversees grant approvals, ensures compliance with guidelines, and monitors progress. Eligible applicants include institutions and individuals with at least three years of relevant expertise and a focus on data-driven research. Funding is capped at ₹15,00,000 for institutions and ₹5,00,000 for individuals, with disbursal linked to project milestones. The scheme excludes projects with commercial or international funding ties. (MCA Guidelines Dated 29/01/2025)
NFRA Penalizes Statutory Auditor of Religare Finvest CA Neeraj Bansal for Misconduct: The NFRA identified significant failures in the audit as Engagement Partner (EP). These included delay in reporting a fraud of ₹2,036 crores in RFL’s Corporate Loan Book to the Central Government as required under Section 143(12) of the Companies Act. Other major lapses included the improper evaluation of Deferred Tax Assets (DTA) worth ₹495.63 crores and a lack of scrutiny over investments worth ₹200 crores in non-convertible debentures of OSPL Infradel Private Limited. The company had minimal net worth, yet the EP failed to question the rationale behind these investments or verify impairment and interest income. NFRA imposed a monetary penalty of ₹5,00,000 and barred him from conducting audits for five years. (NFRA Order Dated 30/01/2025)
H. Insolvency and Bankruptcy Board of India (IBBI)
Amendments to IBBI Liquidation Process Regulations: The key changes include the inclusion of compromise or arrangement under Section 230 of the Companies Act, as an alternative to selling a corporate debtor as a going concern. It mandate liquidators to file prescribed forms electronically with the IBBI, specifying strict timelines and penalties for delays. A Corporate Liquidation Account is to be maintained with a scheduled bank. The regulations now require bidders to submit an undertaking affirming their eligibility under Section 29A of IBC, with provisions for forfeiting deposits if found ineligible. Liquidators must conduct due diligence on the highest bidder within three days and consult a committee before declaring a successful bidder. It also update auction processes, bidder eligibility verification, and unclaimed dividend reporting. (IBBI Notification Dated 28/01/2025)
Amendments to IBBI Voluntary Liquidation Process Regulations: The key changes include the omission of Regulation 33 and revisions to Regulation 39, mandating the Board to maintain a Corporate Voluntary Liquidation Account with a scheduled bank. The Regulation 41A introduces electronic filing of forms (VL1 to VL4) for different stages of liquidation, with specified timelines and penalties for delay. It also modify Form G in Schedule I to capture detailed information on stakeholders entitled to unclaimed dividends or undistributed proceeds, specifying their identification details and tax-related requirements. (IBBI Notification Dated 28/01/2025)
Amendments to IBBI Grievance and Complaint Handling Regulations: The notification modifies Regulation 3(4) of the 2017 Grievance Handling Regulations. Previously, complaints had to be filed within 30 days, but under the revised rule, the period will now start only after the closure of all proceedings related to the insolvency process before the Adjudicating Authority, Appellate Authority, High Court, or Supreme Court, as applicable. (IBBI Notification Dated 28/01/2025)
Amendments to IBBI Inspection and Investigation Regulations: The amendment adds an explanation to regulation 2(1)(c) clarifying the term “associated.” It defines “associated” as involvement in the conduct of investigation, inspection, consideration of related reports, or issuance of show-cause notices. (IBBI Notification Dated 28/01/2025)
Amendments to IBBI Model Bye-Laws and Governing Board of Insolvency Professional Agencies Regulations: The amendments mainly relates to Schedule, paragraph VI, clause 12A. It extends the timelines replacing the period of “forty-five” days with “ninety” days and “fifteen” days with “ninety” days. (IBBI Notification Dated 28/01/2025)
Amendment to Guidelines for Information Utilities: IBBI has made amendments to the Guidelines for Technical Standards regarding the performance of core and other services by Information Utilities (IUs), under IBBI Information Utilities Regulations. The key amendments include the adoption of Permanent Account Number (PAN) and other verified identity documents for user registration, along with the mandatory use of UIDAI’s demographic authentication system by IUs. It also refine the procedures for submitting supporting documents, establishing the status of debt information, and enhancing the preservation and purging of data. (IBBI Guidelines Dated 29/01/2025)
NCLAT, Central Excise claims not secured debt: Case of Asstt Comm CGST & CE vs Pradeep Kobra, NCLAT Delhi Judgement dated 23rd January 2025. The appellant argued that its claim of Rs. 11.76 crore, arising under the Central Excise Act, should have been treated as a secured debt, entitled to higher payment in the Resolution Plan, similar to other secured creditors. However, the tribunal held that the dues under the Central Excise Act are considered operational debts and not secured debts under IBC. (NCLAT Delhi Judgement Dated 23/01/2025)
NCLAT, Commercial wisdom of CoC in rejecting resolution plan and opting for liquidation non-justiciable: Case of Fortune Chemicals Limited vs Ashok Kumar Jaiswal, NCLAT Delhi Judgement Dated 6th January 2025. The tribunal held that the commercial wisdom of the Committee of Creditors [CoC] in rejecting resolution plan and opting for liquidation is non-justiciable. Thus held that NCLT rightly refused to intervene in decision of CoC. (NCLAT Delhi Judgement Dated 06/01/2025)
NCLAT, Absolute right of Corporate Debtor over property established hence it is part of liquidation estate: Case of Wockhardt Ltd vs Eurolife Pvt Ltd, NCLAT Delhi Judgement Dated 7th January 2025. The tribunal held that assignment agreement establishes absolute right of the corporate debtor over the property hence it is part of liquidation estate. Payment of unauthorised sub-letting charges doesn’t mean any valid sub-letting of property. (NCLAT Delhi Judgement Dated 07/01/2025)
I. Reserve Bank of India (RBI)
Private Placement of Non-Convertible Debentures (NCDs) with maturity period of more than one year by HFCs: The guidelines have been updated in line with the guidelines for Non-Banking Financial Companies (NBFCs) as stated in the Master Direction, RBI (NBFC- Scale Based Regulation) Directions, 2023. It standardizes the treatment of private placement rules for both HFCs and NBFCs, ensuring consistency across the financial sector. (RBI Notification 107/2025 Dated 29/01/2025)
Framework for imposing monetary penalty and compounding of offences under the Payment and Settlement Systems Act: The framework outlines various contraventions that can result in penalties, such as unauthorized operation of payment systems, false statements, failure to comply with RBI directions, and non-compliance with data storage norms. Penalties for such offences can range from ₹10 lakh to twice the amount involved, with daily fines for continuing defaults. The framework also allows for compounding of contraventions, offering an option for resolution without further legal proceedings, provided the contravener applies for it. It also sets a clear procedure for imposing penalties, including show-cause notices and personal hearings. (RBI Notification 108/2025 Dated 30/01/2025)
J. Miscellaneous
Unified Pension Scheme (UPS) notified for Central Govt Employees: UPS has been introduced as an option under the National Pension System (NPS), applicable from 1st April 2025, for Central Government employees. This optional scheme offers assured payouts based on qualifying service, with minimum payouts starting at ₹10,000 per month for 10 years of service. Employees can contribute 10% of their basic pay and Dearness Allowance, matched by an equivalent government contribution. Additional Central Government contributions of 8.5% will support a pooled corpus for assured payouts. Investment choices are available for individual corpus management, while the pooled corpus is centrally managed. UPS ensures payouts under conditions such as superannuation, voluntary retirement, or retirement under FR 56(j). Family payouts are assured at 60% of the employee’s payout in the event of death post-retirement. The scheme does not apply to employees dismissed, removed, or resigning from service. Employees opting for UPS transfer their existing NPS corpus to the new scheme. Past retirees can also opt in, receiving arrears and top-ups. (Fin Min Notification Dated 24/01/2025)
******
Disclaimer: The contents of this article are for informational purposes only. The user may refer to the relevant notification/ circular/ decisions issued by the respective authorities for specific interpretation and compliances related to a particular subject matter)
Author Bio
