Legal & Industry Updates - March 2025
SPECIAL EVENTS
Intellectual Property Rights (“IPR”) and Sustainable Cities and Communities, March 29, 2025
The team at Ivy Law participated in an International webinar on the “IPR and Sustainable Cities and Communities” organized by the University of Mysore, Department of Studies in Law. The webinar highlighted an important concept of smart cities and the role of IPR in integrating technological innovation for sustainability in various countries, and how India could benefit from these models. It focused on topics regarding protection of green technologies through IPR and exploring IPR as a driver of sustainable transport, patents, and green technologies. How to balance IPR protection and public access to renewable technologies were also deliberated upon.
LEGAL & INDUSTRY UPDATES
Reserve Bank of India (“RBI”) Lists Out Measures to Manage Liquidity Conditions source)
RBI, on 5th March, 2025, has announced a slew of measures to supervise the liquidity conditions in the banking sector through Open Market Operations purchase auctions of Central Government (“CG”) securities for an aggregate amount of INR 1 lakh crore in two tranches of INR 50,000 crore each to be held on 12th March, 2025, and 18th March, 2025 and also the USD/INR Buy/Sell Swap auction of USD 10 billion for a tenor of thirty-six months to be held on 24th March, 2025. RBI has further assured that it will continue to monitor evolving liquidity and market conditions and take appropriate measures to ensure orderly liquidity conditions.
Insolvency and Bankruptcy Board of India (“IBBI”) Mandates Enhanced Disclosure of Carry Forward Losses for Resolution Professionals (“RPs”) (source)
The IBBI, on 17th March, 2025, has mandated the disclosure of carry forward of losses for RPs as per the Income Tax Act, 1961 (“IT Act”), in the Information Memorandum, wherein, it has been specifically stated that post the amendment, it would highlight the quantum of carry-forward losses available to the corporate debtor, the breakdown of these losses under specific heads as per the IT Act, applicable time limits for utilizing these losses, and explicitly acknowledging if there is non-existence of carry forward of losses available to the corporate debtor. IBBI has further advised the insolvency professionals to ensure a comprehensive capture of details related to carrying forward of losses with the aim to enable informed decision-making and building a robust mechanism for the insolvency process.
Competition Commission of India (“CCI”) Signs Memorandum of Understanding (“MoU”) With Global Regulators to Strengthen Competition Law Cooperation (source)
The CCI, on 24th March, 2025, has signed several bilateral and multilateral MoUs with global regulators in in Egypt, Mauritius, Japan, Brazil, Canada and Australia, among others, with the aim to enhance cooperation in competition law enforcement and strengthen collaboration in tackling anti-competitive practices across borders. CG has also incorporated competition-related provisions in 14 Free Trade Agreements with trading partners wherein the agreements ensure that participating countries take appropriate measures against anti-competitive activities to facilitate smooth trade and investment.
All-India Consumer Products Distributors Federation (“AICPDF”) CCI Against Quick Commerce
(source)The AICPDF, a body representing 4 lakh retail distributors, has filed a petition with CCI to regulate the quick commerce platforms alleging unfair pricing, monopolizing the market and how they are adversely impacting Kirana stores in tier 1 cities. AICPDF has alleged that the platforms have deep pocket and are indulging in deliberate losses by way of predatory pricing to expand in the market. Therefore, in the petition, AICPDF has demanded a minimum support price on maximum retail price to prevent unfair pricing strategies. It has also proposed a mandatory 10% price floor on fast-moving consumer goods (“FMCG”) products and a 2-3% price floor on non-FMCG items sold via quick commerce platforms. It has further urged the CCI to introduce regulatory measures to curb excessive discounts and promotional offers by these quick commerce platforms.
Ministry of Law and Justice (“Law Ministry”) Withdraws the Advocates (Amendment) Bill, 2025 (“Bill, 2025”) (source)
The Law Ministry has withdrawn the draft Bill, 2025 from public consultation after facing threats of protests from lawyers’ bodies. The Bill, 2025 proposed to take disciplinary action against any lawyer for disrupting court functioning, even cancelling their license to practice, while also laying down standards of professional conduct and etiquette and further prescribed regulations as it may deem necessary. However, considering the number of suggestions and concerns received, it has been decided to conclude the consultation process and based on the feedback, the draft Bill, 2025 would be processed afresh for consultation with stakeholders.
Bar Council of India (“BCI”) Condemns Unethical Legal Advertising, Misleading Social Media Promotions by Advocates (source)
The BCI has warned lawyers and legal influencers against unethical advertising and misleading promotional activities on social media or through promotional videos and influencer endorsements, and has further denounced the involvement of actors, celebrities, and digital media platforms as promotional tools, which clearly violates Rule 36, Chapter II, Part VI (Duty to Colleagues) of the BCI Rules. Also, a judgement taking in consideration the said case categorically denied these online platforms any protection under the safe harbor provisions outlined in Section 79 (Exemption from liability of intermediary in certain cases) of the Information Technology Act, 2000 (“IT Act”), considering their involvement in facilitating practices expressly prohibited by law.
Supreme Court (“SC”) Issues Notice to High Courts (“HCs”) to Revisit Rules to Designate ‘Senior Advocates’ (source)
SC has sought response from HCs on the issue of reconsideration of the process of designation of senior advocates. Section 16 (Senior and other advocates) of the Advocates Act, 1961 creates a class of “senior advocate”, who would be designated by the constitutional courts by virtue of their ability, standing at the Bar or special knowledge or experience in law. Currently, the procedure for designation of senior advocates currently follows two decisions of the SC passed in 2017 and 2023, both by three-judge benches, however, in January 2025, a two-judge bench raised doubts over certain norms laid down in these two decisions and referred the matter to the Chief Justice of India for constituting a bench of “appropriate strength” to modify or revise the parameters set by the two judgments.
SC Reserves Judgement on Whether Courts Can Modify Arbitral Awards Under Section 34 and Section 37 of the Arbitration and Conciliation Act, 1996 (“A&C Act”) (source)
SC has reserved the judgement on whether courts can modify arbitral awards under section 34 (Application for setting aside arbitral awards) and 37 (Appealable orders) of the A&C Act. The decision which could have a significant implications for India’s arbitration framework is pending before a constitution bench. While one line of decisions of SC has answered the aforesaid question in the negative, there are decisions which have either modified the awards of the arbitral tribunals or upheld orders under challenge modifying the awards.
Securities and Exchange Board of India (“SEBI”) Proposes to Remove Digital Performance Tracking From Employee Appraisals (source)
SEBI has decided to remove the linkage of its digital Management Information System (“MIS”) from employee appraisals, with the aim to bring in a more balanced approach by modifying its review process and not discarding the older methods, rather re-evaluating them for improvement, therefore an internal circular has been issued in this regards. Previously, the SEBI employees' performance appraisals were significantly influenced by the digital MIS, however, this approach led to concerns as few departments felt that their work was not accurately represented through numerical targets and therefore this shift has been duly suggested.
Public Sector Banks Eyes Financial Technology Companies (“Fintech”) Tie-Ups for Micro, Small and Medium Enterprises (“MSMEs”) Loans (source)
Public sector banks and non-banking finance companies are increasingly strengthening and pursuing fintech partnerships to boost MSME lending amid CG push in the budget for accelerating credit flow to the MSME sector and priority sector loans. Co-lending models and digital solutions are driving growth, though operational challenges remain in scaling supply chain financing. Also, a slowdown in unsecured consumer lending, which saw the most fintech partnerships, has led to a sharpened focus by these banks on supply chain finance, loan against property, and term loans for businesses.
Renowned Social Media Platform Sues CG Over Alleged Censorship, IT Act Violations (source)
A well-known social media platform has launched a legal challenge against CG, accusing the Ministry of Electronics and Information Technology (“MeitY”) of unlawfully expanding its censorship capabilities. The lawsuit claims that MeitY has encouraged other government departments to use a content-blocking website launched by the Ministry of Home Affairs which enables countless government officials to issue content removal orders without the stringent safeguards traditionally required under Indian law, thereby creating an impermissible parallel system that facilitates unrestrained censorship of information in India. Therefore, the platform is now seeking to have the directive quashed, citing it as an overreach of governmental power.
Disclaimer: The updates provided in this document is not a legal opinion and does not claim to capture all legal developments related to the subject matter stated herein. It is advisable to seek legal advice for accurate applicability, prior to relying on the updates for any legal matter.