Your Weekly dose of Legal, Technology and Risk Insights
TOP STORY OF THE WEEK
Deepfakes, due diligence and the new compliance burden
The 2026 IT Rule Amendment shifts platforms from passive hosts to active regulators of "Synthetically Generated Information" (SGI). Intermediaries must now proactively detect deepfakes, label synthetic media, and embed metadata for traceability. Significant platforms are further required to implement pre-upload user declarations and verification. By moving to this "preventative" model, the law narrows traditional safe harbor protections and increases corporate liability. This mandate risks "defensive moderation," where platforms over-censor content to avoid legal penalties.
LEGAL & TECH
Delhi HC fines Parle Agro Rs10,00,000 in PepsiCo trademark dispute
The Delhi High Court imposed a Rs10 lakh penalty on Parle Agro for failing to comply with its order to regularly disclose sales data in an ongoing trademark dispute with PepsiCo over the tagline “For The Bold.” While the Court did not find the non-compliance to be wilful, it termed it a serious violation and directed Parle Agro to deposit the penalty and submit an unconditional apology. The Court was lenient regarding old social media posts but took a strict stance on the company’s failure to file sales figures for over two years, stressing that court orders must be followed regardless of a party’s interpretation of their relevance.
AI & Stipend Demand Take Centre Stage In DBA Polls
The increasing use of AI in the legal profession is reducing reliance on junior lawyers for tasks like drafting and research, leading to fewer internships, lower earnings, and limited training opportunities for newcomers. This has sparked demands for a government-backed stipend, which has become a key issue in the upcoming District Bar Association elections in Nagpur. Young lawyers are prioritizing candidates who address these professional challenges, marking a shift away from traditional factional politics.
CORPORATE COMPLIANCE
India regulator scrutinising how banks unwound rupee arbitrage, sources say
The Reserve Bank of India is scrutinising how major banks unwound up to Usd40 billion in rupee arbitrage trades after it directed them to exit such positions to stabilise the currency. The regulator is investigating whether banks shifted these trades to corporates or related parties, potentially breaching rules and undermining efforts to support the rupee. The review includes examining treasury operations and client transactions, though any penalties remain unclear.
India: MCA Launches 'CCFS 2026'
The Ministry of Corporate Affairs officially operationalized the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026) on April 15. This provides a 90% waiver on additional fees for overdue filings like MGT-7 and AOC-4.
Risk Intelligence
ED Flags Rs11,600 Crore in RHFL-RCFL Corporate Loan Scam Probe
The Enforcement Directorate has identified over Rs11,600 crore as suspected “proceeds of crime” in its probe into Reliance Home Finance Limited and Reliance Commercial Finance Limited, highlighting a major corporate lending irregularity. The agency alleges large-scale fund diversion through shell companies, weak due diligence, and bypassed lending norms, with nearly 90% of loans routed via questionable entities. Despite involvement of multiple banks and restructuring efforts, recoveries remain limited, prompting deeper forensic scrutiny.
Banks take cautious approach to acquisition financing under new RBI norms
The Reserve Bank of India has introduced new acquisition financing guidelines, prompting banks to adopt a cautious, phased approach starting with smaller deals. While the rules allow funding up to 20% of capital, they include strict safeguards like debt-to-equity caps, profitability requirements, and limits on funding share to ensure strong due diligence. Overall, the framework offers flexibility but is designed to prevent excessive risk, with banks viewing it as a long-term growth opportunity rather than an immediate expansion area.