Civil Courts Cannot Grant Injunctions Against SARFAESI Action: Karnataka High Court

The Karnataka High Court has set aside a Commercial Court order that had stopped lenders from taking action under the SARFAESI Act, holding that such directions cannot be issued by civil courts. Referring to Section 34 of the SARFAESI Act, which bars courts from granting injunctions in such matters, the Court said: “A plain reading of the said section indicates that it proscribes any Civil Court from issuing any injunction not only with respect to the action taken, but also to an action that...

Delhi High Court Dismisses Stock Broker's Plea Against Order Summoning Him In ₹42,000 Crore DHFL Fraud Case

The Delhi High Court has dismissed a petition filed by stockbroker Jalaj Batra challenging an order dated April 27, 2024 of a Special Judge (PC Act) at Rouse Avenue Courts, New Delhi, summoning him as an accused in the Rs 42,000 crore DHFL loan fraud and alleged share price manipulation case. The order involves taking cognisance of offences under the IPC and Prevention of Corruption Act, including criminal conspiracy, cheating, forgery and corruption. A bench of Justice Manoj Jain held that...

BREAKING | Bombay High Court Quashes FIR Against HDFC Bank CEO Sashidhar Jagdishan By Lilavati Trust

The Bombay High Court on Tuesday quashed the FIR registered against Sashidhar Jagdishan, Managing Director and CEO of HDFC Bank, in connection with allegations of bribery made by the Lilavati Kirtilal Mehta Medical Trust, which manages the Lilavati HospitalA division bench of Justices M. S. Karnik and N. R. Borkar allowed Jagdishan's plea seeking quashing of the FIR lodged by the Bandra police on along with the magistrate's order that had directed registration of the case.The FIR had been...

RBI Warns Public Against Misleading Campaigns Promising Loan Waivers

The Reserve Bank of India on Monday cautioned the public against misleading campaigns promising loan waivers, warning that such activities continue despite its earlier press release dated December 11, 2023. “Such campaigns not only mislead the general public but also interfere with the orderly functioning of the credit system of the country,” the RBI said. In a press release dated May 4, 2026, the central bank said certain individuals and entities are falsely claiming they can secure waivers...

Kerala HC Dismisses Challenge To Kerala Co-operative Laws, Says Co-op Banks Not Outside Banking Regulation

The Kerala High Court has dismissed a plea seeking to strike down the Kerala Co-operative Societies Act, 1969 and the Kerala State Co-operative Agricultural Development Banks Act, 1984, rejecting a challenge to the legal framework governing co-operative banks and holding that they do not operate outside the banking regulatory regime. The petitioner had argued that the Acts unlawfully exclude the jurisdiction of civil courts and vest adjudicatory powers in arbitrators, thereby depriving citizens...

RBI Exempts NBFCs With Assets Below ₹1,000 Crore Without Public Funds Or Customer Interface From Registration

The central bank’s amendment to the Non-Banking Financial Companies – Registration, Exemptions and Framework for Scale Based Regulation Directions, introducing the changes, will come into effect from July 1, 2026

Karnataka High Court Upholds DICGC's Priority Right To Recover Depositor Payouts From Insured Banks

The Karnataka High Court has upheld the law allowing the Deposit Insurance and Credit Guarantee Corporation (DICGC) to recover amounts paid to depositors directly from a failed bank, with priority over other liabilities, ruling that the premium charged need not be proportionate to the insured amount. A Division Bench of Chief Justice Vibhu Bakhru and Justice C.M. Poonacha dismissed a writ appeal filed by a depositors' society (Sangha) arising from the collapse of Sri Guru Raghavendra Sahakara...

RBI Imposes ₹80 Thousand Penalty On Muthoot Housing Finance For Fair Practice Code Violation

The Reserve Bank of India has imposed a monetary penalty of Rs. 80,000 on Muthoot Housing Finance Company Limited for non-compliance with RBI directions on the Fair Practice Code.The penalty was imposed by an order dated April 21, 2026. The action follows a statutory inspection conducted by the National Housing Bank with reference to the company's financial position as of March 31, 2025, which revealed regulatory lapses.RBI found that the company had failed to disclose the approach for gradation...

RBI Imposes ₹41.80 Lakh Penalty On Bandhan Bank For KYC, Regulatory Lapses

The Reserve Bank of India has imposed a monetary penalty of Rs.41.80 lakh on Bandhan Bank Limited for contravention of provisions of the Banking Regulation Act, 1949 and non-compliance with certain directions on Know Your Customer. The penalty was imposed by an order dated April 21, 2026. The action follows the Statutory Inspection for Supervisory Evaluation conducted with reference to the bank's financial position as on March 31, 2025, which revealed supervisory findings of non-compliance. ...

RBI Cancels Paytm Payments Bank Licence, Cites Harm To Depositors' Interests

The Reserve Bank of India (RBI) on Friday cancelled the banking licence of Paytm Payments Bank Limited, citing serious regulatory breaches and conduct that it said was harmful to depositors' interests. With the cancellation taking effect from the close of business on April 24, 2026, the bank is barred from undertaking any banking activity as defined under Section 5(b) of the Banking Regulation Act, 1949, or any additional business under Section 6, with immediate effect. The regulator said it...

Banks Must Halt Online Money Game Transactions On Regulator's Direction Under Online Gaming Rules, 2026

Banks and payment intermediaries will be required to suspend or block transactions linked to online money games when directed by the regulator, under the Online Gaming Rules, 2026.The Rules were notified by the centre on Wednesday.Rule 19(2) says that once the Online Gaming Authority issues directions in respect of an online money game, banks, financial institutions, and entities facilitating transactions must suspend, restrict, or close such transactions and stop authorising funds tied to those...

Bombay High Court Upholds RBI's 2019 Stressed Assets Framework, Finds No Arbitrariness

The Bombay High Court recently upheld the Reserve Bank of India's June 7, 2019 circular on the Prudential Framework for Resolution of Stressed Assets, refusing to interfere with the policy decision that repealed multiple earlier restructuring circulars. The court found no arbitrariness in the RBI's decision to withdraw earlier schemes, including those relating to corporate debt restructuring, restructuring of advances by banks, and restructuring of dues of small and medium enterprises, holding...