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TOP STORY OF THE WEEK
Supreme Court Flags NCLT Delays as 'Grim', Puts IBC Timelines Back in Focus
The Supreme Court has taken suo motu cognisance of delays by NCLT benches in approving resolution plans under the Insolvency and Bankruptcy Code. The Court noted that 383 resolution plans were pending across India, with delays ranging from over one month to more than 700 days. It also flagged manpower and infrastructure shortages across NCLT benches, warning that such delays could defeat the purpose of the IBC. The development is highly relevant for lenders, resolution applicants, insolvency professionals, and distressed-asset investors. Separately, the NCLT has also moved to streamline proceedings by allowing Single Judicial Member Benches to handle certain procedural, urgent, and uncontested matters.
LEGAL & TECH
Madras High Court Stays Antitrust Probe Against SAIL Over Procedural Concerns
The Madras High Court has put the Competition Commission of India’s antitrust investigation against Steel Authority of India Ltd. on hold. SAIL challenged the probe on procedural grounds, arguing that it was earlier exonerated and later implicated without adequate notice. The case relates to an alleged steel-sector cartel investigation involving major steel companies. The company argued that reopening or altering the investigation without proper notice violated principles of natural justice. The next hearing is scheduled for June 10, making this a key matter to watch for competition-law and corporate litigation teams.
Indian Law Firms Move Toward Responsible AI Adoption in Legal Workflows
Talwar Thakore & Associates has partnered with Lucio AI to strengthen how its lawyers access institutional knowledge and execute matters across practice areas. The firm said the objective is to help lawyers review and prepare work faster, while maintaining professional judgment and quality standards. This reflects a broader shift in India’s legal market from AI experimentation to structured, workflow-based legal AI adoption. The focus is no longer only on legal research; firms are increasingly looking at drafting, review, knowledge access, and internal process improvement.
CORPORATE COMPLIANCE
MCA's CCFS-2026 Opens Compliance Cleanup Window for Defaulting Companies
The Ministry of Corporate Affairs’ Companies Compliance Facilitation Scheme, 2026 is now active from 15 April to 15 July 2026. The scheme gives eligible companies a one-time opportunity to regularise pending annual filings and statutory documents. It covers key filings such as annual returns, financial statements, auditor appointment forms, and certain foreign-company filings. Companies can file delayed documents by paying normal filing fees plus only 10% of the applicable additional fees. The scheme also allows inactive or defunct companies to explore dormancy or strike-off options at reduced cost.
RBI Finalises Expected Credit Loss Rules for Banks from April 2027
The Reserve Bank of India has finalised its expected credit loss framework for banks, with implementation scheduled from 1 April 2027. The new framework requires lenders to assess credit risk more proactively and create buffers for likely losses. Banks will classify assets into stages depending on whether credit risk has increased since initial recognition. Where risk has not significantly increased, banks must recognise 12-month expected credit losses; where risk has increased, lifetime expected losses will apply. The RBI has retained the existing 90-day norm for classifying an account as a non-performing asset.
RISK INTELLIGENCE
ED Attaches Rs3,034.90 Crore in Reliance Communications Bank Fraud Case
The Enforcement Directorate has provisionally attached assets worth Rs3,034.90 crore in the Reliance Communications bank fraud case. According to ED, this takes the total attachment in Reliance Anil Ambani Group-related cases to over Rs19,344 crore. The agency said the investigation involves alleged diversion and laundering of bank/public funds. The attached assets include promoter-group properties and shares, with the stated objective of preventing dissipation of assets. ED also stated that the action is intended to protect the interests of banks and the public, subject to due legal process.
Finance Ministry Asks Banks to Adopt RBI's MuleHunter.AI to Detect Mule Accounts
The Finance Ministry has asked banks to adopt RBI’s AI-based tool, MuleHunter.AI, to identify and prevent mule accounts used in digital financial frauds. The direction came during a high-level meeting on Operation Octopus, attended by officials from DFS, RBI, CBI, I4C, banks, and Hyderabad Police. The meeting focused on the growing use of bank accounts opened through weak or bypassed KYC checks to move cybercrime proceeds. Hyderabad Police’s recent action reportedly involved arrests linked to mule-account networks, including bank officials accused of enabling account openings. For banks and fintechs, this signals stronger scrutiny around account opening, KYC quality, transaction monitoring, and branch-level accountability.