Reserve Bank of India Act, 1934

The Supreme Court examined the corporate insolvency resolution of Dewan Housing Finance Corporation Ltd (DHFL), where Piramal Capital submitted a resolution plan (RP) that allocated recoveries from Section 66 applications to itself. The plan was approved by the Committee of Creditors (CoC) and the National Company Law …

The Supreme Court considered a batch of writ petitions filed by several banks challenging the Reserve Bank of India's directions to disclose confidential information under the Right to Information Act, 2005. The banks argued that the directions conflicted with Section 8 of the RTI Act, the RBI Act and the Banking Regul…

The petitioners, including acid‑attack survivors with facial disfigurements and a blind individual, challenged the mandatory digital KYC/e‑KYC/video‑KYC procedures for being inaccessible and discriminatory. They argued that requirements such as capturing a live photograph and performing a liveness check (e.g., eye‑blin…

The Supreme Court examined the constitutional validity of the amendment to Section 2(1)(o) of the SARFAESI Act, which altered the definition of a non‑performing asset (NPA) to allow different regulators to prescribe classification guidelines for their respective creditors. The petitioners argued that this amounted to c…

New Horizon Sugar Mills Ltd and its directors, who had guaranteed a bank loan, defaulted and faced attachment of their properties under the Pondicherry Protection of Interest of Depositors in Financial Establishments Act, 2004. They challenged the validity of that Act and a government order attaching properties, arguin…

The Supreme Court examined civil appeals filed by State Bank of India and other banks challenging the classification of borrowers' accounts as fraudulent under the RBI's 2016 Master Directions on Frauds. Borrowers contended that the directions denied them a hearing before such classification, violating the principles o…

The Association of Leasing and Financial Service Companies challenged the levy of service tax under Section 66 of the Finance Act, 1994 (as amended) on financial leasing, equipment leasing and hire‑purchase services, arguing that Parliament lacked competence under Entry 97 of List I because Article 366(29A) treated suc…

The Association for Democratic Reforms and Common Cause filed two interlocutory applications seeking a stay on the sale of electoral bonds under the Electoral Bond Scheme, 2018, alleging that the scheme permits donor anonymity and violates transparency in political funding. The Court examined the scheme’s statutory bas…

The appellant SEPCO, a Chinese corporation, was awarded a large arbitration award in favour of the Indian respondent Power Mech Projects. The High Court, under Section 9 of the Arbitration Act, directed SEPCO to furnish a Rs 30 crore bank guarantee from a "scheduled bank located in India". SEPCO complied by obtaining a…

The Small Scale Industrial Manufactures Association and several other industry groups filed writ petitions under Article 32 seeking a mandamus directing the Union of India, the Ministry of Finance and the Reserve Bank of India (RBI) to grant a total waiver of interest, extend the loan moratorium, provide sector‑wise re…

Indiabulls Housing Finance Ltd (appellant) sought to enforce loan recovery against Deccan Chronicle Holdings Ltd and others under the SARFAESI Act after the original lender, Indiabulls Financial Services Ltd (IBFSL), merged into Indiabulls Housing Finance. The High Court held that SARFAESI could not be invoked because …

The appellants borrowed money from the respondent, securing the loan with seven immovable properties. Their loan account was declared a non‑performing asset and the parties’ contract contained an arbitration clause, leading the respondent to initiate arbitration while also issuing notices under Section 13 of the SARFAE…

The Supreme Court examined a consumer complaint filed by two trusts on behalf of credit‑card users alleging that banks were charging exorbitant interest rates of 36%‑49% p.a., which the National Consumer Disputes Redressal Commission (NCDRC) had deemed an unfair trade practice and capped at 30% p.a. The Court held that…

The State Bank of Patiala discounted bills of exchange and, when the drawee defaulted, levied a daily overdue charge as compensation. The revenue argued that this charge constituted "interest" under Section 2(7) of the Interest Tax Act, 1974 and was therefore taxable, while the bank contended it was merely compensation…

The Supreme Court admitted a batch of writ petitions challenging the demonetisation notification of 8 November 2016 and issued interim directions. It examined the legality of the RBI's power to demonetise under the Reserve Bank of India Act and its compatibility with constitutional provisions. The Court considered the …

The Supreme Court examined whether the Reserve Bank of India (RBI) could refuse to disclose information obtained from banks under the Right to Information (RTI) Act on the grounds of fiduciary relationship, economic interest, or commercial confidence. The Court held that RBI does not have a fiduciary relationship with …

Integrated Finance Co. Ltd., a non‑banking financial company, was inspected by the RBI which found multiple violations and issued a circular prohibiting it from accepting deposits. The company, facing profitability problems, proposed a scheme of compromise under Section 391 of the Companies Act to convert deposits into…

The Board of Directors of the District Cooperative Central Bank, Panna was superseded by the Joint Registrar of Co-operative Societies without prior consultation with the Reserve Bank of India, contrary to the second proviso of Section 53(1) of the Madhya Pradesh Co-operative Societies Act, 1960. The Board challenged t…

The Supreme Court of India struck down the Electoral Bond Scheme and related amendments to the Finance Act 2017, which had introduced anonymous financial contributions to political parties. The Court held that the scheme violated the right to information of voters under Article 19(1)(a) of the Constitution, as informat…

The Kerala State Co‑operative Agricultural and Rural Development Bank Ltd. (KSCARDB) claimed a deduction under s.80P(2)(a)(i) of the Income Tax Act for profits earned by providing credit facilities to its member co‑operative societies. The Assessing Officer held that KSCARDB was a "co‑operative bank" within the meaning…

PGF Limited, which sold and developed agricultural land and ran joint‑venture schemes, was directed by SEBI to cease collecting money and to refund investors, on the ground that its activities constituted a collective investment scheme (CIS) under Section 11AA of the SEBI Act. PGF challenged the SEBI order and the cons…

The Supreme Court examined whether the Reserve Bank of India's Master Circular on wilful default applies to defaults arising from derivative transactions or is limited to traditional lender‑borrower relationships. Kotak Mahindra Bank had classified Hindustan National Glass and other parties as wilful defaulters for non…

The case concerned whether a Non‑Banking Financial Company (NBFC) could treat the "Provision for NPA" debited to its profit‑and‑loss account, as required by RBI Directions 1998, as income under s.2(24) of the Income Tax Act or claim a deduction under s.36(1)(vii). The Supreme Court held that the RBI Directions are mere…

The Supreme Court examined whether Non‑Banking Financial Companies (NBFCs) regulated under Chapter III‑B of the Reserve Bank of India Act, 1934 are also subject to the Kerala Money Lenders Act, 1958 and the Gujarat Money Lenders Act, 2011. The NBFCs argued that the RBI Act, especially after its 1997 amendment, constitu…

The Supreme Court examined petitions seeking to shift investigation of the multi‑state chit‑fund (Ponzi) scam, which defrauded lakhs of depositors of roughly Rs 10,000 crore, from the State Police to the Central Bureau of Investigation (CBI). The scam involved companies operating across West Bengal, Tripura, Assam and …

The appellant, a managing director of a pharmaceutical firm, sought to execute an international Merchanting Trade Transaction (MTT) for PPE products, but the Reserve Bank of India (RBI) denied permission under Clause 2(iii) of the 2020 MTT Guidelines because the Indian government had banned PPE exports during the COVID…

The Court examined whether co‑operative banks, which are societies registered under State legislation, fall within the Union List entry 45 (banking) or the State List entry 32 (co‑operative societies) for the purposes of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act,…

The Reserve Bank of India (RBI) issued a Statement and a Circular in April 2018 directing banks and other regulated entities to cease dealing with persons or entities dealing in virtual currencies (VCs) and to exit existing relationships within three months. The petitioners – a trade association and several cryptocurre…

The petitioners challenged the constitutional validity of the Tamil Nadu Protection of Interests of Depositors (in Financial Establishments) Act, 1997 (as amended in 2003), arguing that it encroached upon Union legislative competence (entries 43‑45 of List I) and violated Articles 14, 19(1)(g) and 21 of the Constitutio…

The Supreme Court examined whether the Reserve Bank of India's (RBI) communication dated 9 June 1997 to SIDBI was a binding directive under the RBI Act, 1934 and the Banking Regulation Act, 1949, and whether SIDBI was justified in withholding interest on bonds issued by CRB Capital. The Court held that RBI’s directions…

The petitioners, led by Dharani Sugars and Chemicals Ltd., challenged the constitutional validity of the Banking Regulation (Amendment) Act, 2017 which introduced sections 35AA and 35AB, and contended that the RBI circular of 12‑02‑2018 directing banks and NBFCs to resolve stressed assets within six months was ultra vi…

The Supreme Court, by a 4:1 majority, upheld the constitutional validity of the Central Government's notification dated 8th November 2016 demonetising all series of Rs.500 and Rs.1,000 bank notes under Section 26(2) of the Reserve Bank of India Act, 1934. The majority held that the word 'any' in Section 26(2) includes …