Your Weekly dose of Legal, Technology and Risk Insights
TOP STORY OF THE WEEK
HDFC Bank Chairman Quits Citing 'Ethical' Concerns, Shares Fall, RBI Reacts
Atanu Chakraborty resigned as part-time chairman and independent director of HDFC Bank with immediate effect, citing certain practices over the past two years that were not aligned with his personal values and ethics. He clarified that his decision was not due to any specific wrongdoing but stemmed from a mismatch in ideologies. Chakraborty, who joined the board in 2021, highlighted key developments during his tenure, including the merger with HDFC Ltd that made the bank one of India's largest, though he noted its full benefits are yet to materialize. He also expressed gratitude to the board and management despite reports of internal differences.
LEGAL & TECH
OpenAI sued for practicing law without a license
OpenAI has been sued by Nippon Life Insurance Co. of America for allegedly practicing law without a license. The lawsuit claims that ChatGPT advised a woman, Graciela Dela Torre, to challenge a settled disability case, prompting her to fire her lawyer, file multiple motions, and initiate a new lawsuit—despite a binding settlement agreement. Nippon argues this caused legal misuse and reputational harm, while OpenAI has dismissed the claims as meritless and noted that its policies prohibit using ChatGPT for legal advice without a licensed professional.
The Supreme Court of India upholds the right to die with dignity; allows withdrawal of life support
The Supreme Court of India upheld the right to die with dignity for Harish Rana, allowing withdrawal of life-sustaining treatment after he remained in a vegetative state for 13 years. The Court acknowledged the family's prolonged care and emotional struggle, directed his transfer to AIIMS Delhi for palliative care, and clarified that 'withholding or withdrawing medical treatment' replaces the term passive euthanasia, while active euthanasia continues to be illegal.
IPL name controversy: BCCI faces legal showdown, Kerala HC steps in
A plea challenging the use of the name Indian Premier League (IPL) by the BCCI for its annual T20 tournament has been dismissed by the Kerala High Court. The plea was filed by Ashique from Ernakulam, who argued that the IPL is not an official cricket tournament of the country, and therefore the BCCI’s use of the name “Indian Premier League" is illegal. However, according to a report in The Hindu, a Division Bench comprising Chief Justice Soumen Sen and Justice Syam Kumar V.M. concluded that there was no merit in the argument and, as such, refused to entertain the plea.
CORPORATE COMPLIANCE
Large consumer companies are expanding their legal teams in response to rising compliance risks
Major consumer companies are rapidly strengthening their legal leadership teams as tighter regulations and evolving labour laws increase operational complexity. With business expansion, M&A activity, and global exposure, firms are hiring senior legal professionals with strong business acumen, digital expertise, and stakeholder management skills to handle legal, compliance, and governance functions.
India notifies Income Tax Rules, 2026
India has notified the Income-tax Rules, 2026 to implement the new Income-tax Act, 2025 from April 1, 2026. The rules tighten compliance across capital gains, reporting, and non-resident taxation, introduce clearer valuation and disclosure norms, and enhance reporting for financial instruments—aimed at improving transparency and aligning with global tax standards.
Risk Intelligence
Government, RBI strengthen measures against fraudulent loan apps
Reserve Bank of India (RBI) had constituted a Working Group on Digital Lending including lending through Online Platforms and Mobile Apps. Based on its recommendations, RBI has issued regulatory guidelines on digital lending, which aims at firming up the regulatory framework for digital lending, including loans through mobile apps, while enhancing customer protection and making the digital lending ecosystem safe and sound.
ED attaches Rs 35 crore assets in a bank fraud case
The Enforcement Directorate (ED) has attached assets worth Rs35 crore in a bank fraud case involving BNR Infra and Elite Infra Projects. The firms allegedly secured loans from SBI and Bank of Maharashtra using forged documents, fake land records, and misrepresented collateral, causing losses of over Rs35 crore. Investigations revealed fund diversion through multiple entities and misuse of bank guarantees, with proceeds used to acquire assets and repay unrelated liabilities.