August 2026 brought several notable developments to India’s legal and regulatory landscape, spanning legislation, judicial accountability, taxation, financial regulation, corporate compliance, legal education and professional regulation. Parliament enacted several important measures during the month, while ministries, statutory bodies and regulators introduced or clarified measures affecting businesses, professionals, students and other stakeholders.
The month also saw developments beyond the legislative sphere, including new laws made in Monsoon session and the findings of the Inquiry Committee constituted in relation to Justice Yashwant Varma, changes to the regulatory framework for MSMEs and tribunals, and measures concerning banking, taxation and food safety.
HIGHLIGHT OF THE MONTH
Inquiry Committee Finds All Three Charges Against Justice Yashwant Varma Proved: Key Findings of the Report
On 12 August 2026, the report of the Inquiry Committee constituted under the Judges (Inquiry) Act, 1968 in relation to Justice Yashwant Varma was laid before the Lok Sabha, along with the oral and documentary evidence recorded during the inquiry.
The Inquiry Committee found all three Articles of Charge against Justice Yashwant Varma proved, concluding that substantial unexplained currency notes were present within his official residential premises, material evidence was not preserved, and the explanations furnished by him were evasive and unsatisfactory.
MONSOON SESSION 2026
SOME BILLS THAT WERE INSTRODUCED/PASSED DURING MONSOON SESSION
Delayed Birth and Death Registrations to Now Require Magistrates’ Approval; Lok Sabha Passes Bill
On 31 July 2026, the Lok Sabha passed the Registration of Births and Deaths (Amendment) Bill, 2026, seeking to amend the Registration of Births and Deaths Act, 1969.
Lok Sabha Passes Bill Raising Supreme Court Judge Strength to 38 Amid Mounting Pendency
On 3 August 2026, the Lok Sabha passed the Supreme Court (Number of Judges) Amendment Bill, 2026, increasing the sanctioned strength of judges of the Supreme Court of India.
The amended provisions will take effect retrospectively from 16 May 2026.
MSME Development (Amendment) Bill, 2026 proposes Digital registration, mandatory TReDS, faster dispute resolution and graded penalties
On 28 July 2026, the Micro, Small and Medium Enterprises (MSME) Development (Amendment) Bill, 2026, was introduced in the Rajya Sabha, seeking to amend the MSME Development Act, 2006, in line with technological advancements and the evolving business environment.
Lok Sabha Replaces 135-Year-Old Banking Evidence Law; Passes Bankers’ Books Evidence Bill, 2026
On 5 August 2026, the Lok Sabha passed the Bankers’ Books Evidence Bill, 2026, which seeks to provide a contemporary legal framework governing the evidentiary value of bankers’ records and align the law with digital banking practices.
National Tribunals Commission, Data Grid and Uniform Appointment Rules: Lok Sabha Passes Tribunals Reforms Bill
On 10 August 2026, the Lok Sabha passed the Tribunals Reforms Bill, 2026, seeking to improve the efficiency, independence, transparency and uniformity of tribunals across the country. The Bill proposes the establishment of a National Tribunals Commission (NTC) and introduces a common framework governing appointments, qualifications, service conditions and administration of various tribunals.
From Kerala to Keralam: Parliament Clears Name Change Bill
On 11 August 2026, the Lok Sabha passed the Kerala (Alteration of Name) Bill, 2026, which seeks to rename the State of Kerala as ‘Keralam’.
The Bill follows the Union Cabinet’s approval on 24 February 2026 of the proposal to rename the State from ‘Kerala’ to ‘Keralam’. The proposal originated from a resolution passed by the Kerala Legislative Assembly on 24 June 2024, requesting the Central Government to amend the First Schedule to the Constitution under Article 3 and officially adopt the name ‘Keralam’.
Lok Sabha Passes Taxation and Other Laws (Amendment) Bill, 2026: Wide-Ranging Reforms for Digital Payments, Funds and Manufacturing
On 6 August 2026, Lok Sabha passed the Taxation and Other Laws (Amendment) Bill, 2026, which seeks to introduce a series of tax and regulatory measures aimed at providing tax certainty, promoting fund management activities, supporting electronics manufacturing, facilitating diamond trading, encouraging investment in Government securities and simplifying the framework governing digital payments.
SOME OF THE ACTS MADE DURING MONSOON SESSION
TReDS Now Mandatory: What the MSMED Amendment Act, 2026 actually changes for MSME Payments
On 13 August 2026, the Micro, Small and Medium Enterprises Development (Amendment) Act, 2026 received Presidential assent, introducing significant changes to the MSME regulatory framework. The amendments provide for mandatory routing of certain MSME receivable settlements through the Trade Receivables Discounting System (TReDS), tighter timelines for dispute resolution, stronger enforcement of awards and revised penalties.
Mines and Minerals (Development and Regulation) Amendment Act, 2026 restricts State levies on Mineral Rights and Mineral-Bearing Lands
On 17 August 2026, the President assented to the Mines and Minerals (Development and Regulation) Amendment Act, 2026, introducing significant changes to the regulatory framework governing mineral rights and mineral-bearing lands.
A New Framework for Tribunals: Tribunals Reforms Act, 2026 comes into force
On 25 August 2026, the Ministry of Law and Justice notified the commencement of the Tribunals Reforms Act, 2026, bringing all provisions of the legislation into force with effect from the same date.
FOOD SAFETY AND STANDARDS AUTHORITY OF INDIA (FSSAI)
Why FSSAI Is Acting Against ‘Rum-Flavoured Rum’ and ‘Whisky-Flavoured Whisky’
On 2 August 2026, the Food Safety and Standards Authority of India (FSSAI) issued a clarification regarding enforcement action taken against certain alcoholic beverage manufacturers for allegedly using identical flavouring substances and making misleading age-related claims.
Also Read: Food safety in India: From adulteration to misleading labels, what does the law say?
RESERVE BANK OF INDIA (RBI)
RBI Repeals 628 Supervisory Circulars After Consolidating Instructions into 64 Directions
On 31 July 2026, the Reserve Bank of India (RBI) issued a circular repealing 628 supervisory circulars following the release of 64 Consolidated Directions administered by the Department of Supervision (DoS).
RBI Keeps Repo Rate Unchanged at 5.25%; Retains Neutral Stance
On 5 August 2026, the Reserve Bank of India (RBI) released the Monetary Policy Statement following the 62nd meeting of the Monetary Policy Committee (MPC) held from 3 to 5 August 2026 under the chairmanship of RBI Governor Mr. Sanjay Malhotra. The decision follows the Committee’s assessment of evolving domestic and global macroeconomic and financial conditions.
BAR COUNCIL OF INDIA (BCI)
From Ban to Closure in Hours: BCI Clears NALSAR’s 2026 Graduates for Enrolment
On 13 August 2026, the Bar Council of India (BCI) Chairman Manan Kumar Mishra that, after considering representations and reactions from senior advocates, members of the Bar, law students and public-spirited citizens, stated that the 2026 batch of NALSAR, Hyderabad, had no role in any disturbance or movement, thus withdraws enrolment ban.
Not automatic, not for everyone: BCI’s One-Year Window for AIBE XIX enrolment, Explained
On 23 June 2026, the Bar Council of India (BCI) issued a communication to all State Bar Councils regarding the submission of enrolment certificates by candidates who appeared for and successfully cleared AIBE XIX under the undertaking-based eligibility framework.
While retaining the six-month submission requirement as the general rule, the BCI has permitted a one-year outer limit from the date of declaration of the AIBE XIX result for certain eligible candidates who were unable to complete enrolment formalities within the prescribed period due to reasons beyond their control, subject to specified conditions and documentary proof.
UNIVERSITY GRANTS COMMISSION (UGC)
UGC-NET Re-Exam for English, Commerce, Sociology on September 9-10: What Went Wrong, and What Happens Next
On 16 August 2026, the National Testing Agency (NTA) announced the re-conduct of the UGC-NET June 2026 examination for English, Commerce and Sociology, following complaints regarding multiple errors in the question papers. A committee constituted by NTA identified several factual, typographical and translation errors, as well as repetition of previously administered questions.
UGC clears One-Year PG Programmes in Open and Distance Learning and Online Mode under NEP 2020
On 28 July 2026, the University Grants Commission (UGC) issued a circular clarifying the framework for offering One-Year Postgraduate Programmes through Open and Distance Learning (ODL) and/or Online mode under the National Education Policy (NEP), 2020.
CENTRAL BOARD OF DIRECT TAXES (CBDT)
394 Entities, 36 Professionals: CBDT launches Nationwide Verification of Suspicious Foreign Remittances
On 18 August 2026, the Central Board of Direct Taxes (CBDT) announced that the Income Tax Department had undertaken a nationwide verification exercise into suspicious foreign remittances identified through data analytics and ground intelligence.
CABINET DECISIONS
Jammu & Kashmir High Court’s Third Bench to Come Up in Ladakh
On 20 August 2026, the Union Cabinet headed by Prime Minister Mr. Narendra Modi approved the sitting of a bench of the High Court of Jammu and Kashmir in Ladakh, a move aimed at improving access to justice for residents of the Union Territory.
Cabinet Approves Revamped Khelo India Scheme with ₹36,441 Crore Outlay Till 2031
On 31 July 2026, the Union Cabinet chaired by Prime Minister Narendra Modi approved an expanded Khelo India Scheme and a strengthened Assistance to National Sports Federations (ANSFs) Scheme with a combined outlay of ₹36,441 crore for the period 2026-27 to 2030-31.
The revamped scheme seeks to create a structured pathway for athletes from grassroots sports to international competition, while expanding sports infrastructure, talent identification, coaching, sports science support and athlete development across the country.
MINISTRY OF LABOUR AND EMPLOYMENT
Govt revises Offence Compounding Rules under Code on Wages, 2019
On 19 August 2026, the Ministry of Labour and Employment issued a notification revising its earlier notification relating to the compounding of offences under the Code on Wages, 2019, clarifying that offences other than those punishable with imprisonment only or with imprisonment and fine may be compounded, while offences carrying imprisonment remain outside the scope of compounding.
Centre notifies Bonus eligibility and Calculation rules under Code on Wages, 2019
On 25 August 2026, the Ministry of Labour and Employment issued two notifications under the Code on Wages, 2019 clarifying who is eligible to receive statutory bonus and how the bonus amount is to be calculated.
While the one notification specifies that employees earning up to ₹21,000 per month will be eligible for bonus, the other lays down the method for calculating bonus for eligible employees whose monthly wages exceed ₹7,000.
EPF Inspection Charge Rate reduced to 0.18%; Minimum Inspection Charge remains unchanged
On 20 August 2026, the Ministry of Labour and Employment issued a corrigendum to its earlier notification prescribing inspection charges payable by certain exempted establishments under the Code on Social Security, 2020. The corrigendum revises the rate of inspection charges applicable to establishments exempted under the Employees’ Provident Fund Scheme, 1952, reducing the notified rate from 0.35% to 0.18% of wages.
MINISTRY OF LAW AND JUSTICE
Centre Establishes Mediation Council of India Under Mediation Act, 2023
On 27 August 2026, the Ministry of Law and Justice issued a notification establishing the Mediation Council of India under the provisions of the Mediation Act, 2023.
Court by Court, category by category: Inside the Centre’s fresh guidelines on becoming Panel Counsel for the Union of India
On 20 August 2026, the Department of Legal Affairs issued fresh guidelines governing the empanelment of advocates as Panel Counsel for the Union of India before the Supreme Court, High Courts, District and Subordinate Courts, Tribunals and other forums.
The guidelines introduce a structured framework for the appointment of Government counsel, making qualification in the All-India Bar Examination (AIBE) and possession of a valid Certificate of Practice (CoP) mandatory for empanelment.
MINISTRY OF FINANCE
No Charges on UPI Payments: Government Clarifies What the PSS Act Amendment Really Means
On 8 August 2026, the Ministry of Finance clarified that UPI users will continue to make payments without any transaction charges, despite the proposed amendment to Section 10A of the Payment and Settlement Systems Act, 2007 through the Taxation and Other Laws (Amendment) Bill, 2026.
IMPORTANT NOTIFICATIONS
Paper Leak Fast-Track Court Gets a New Judge as Delhi HC Reshuffles Judicial Postings
On 1 August 2026, the Delhi High Court issued posting and transfer orders in the Delhi Higher Judicial Service. Under the new arrangement, Judge Anu Grover Baliga, who was designated as Fast-Track Court dealing with offences under the Public Examinations (Prevention of Unfair Means) Act, 2024, has been transferred to a newly created Special Exclusive Court-04 (National Investigation Agency Act, 2008 and Unlawful Activities (Prevention) Act, 1967).
STATE LEGISLATION
No Coaching for under-13s, no classes beyond 5 hours: Maharashtra proposes tough Rules for Coaching Centres
On 20 August 2026, Maharashtra’s School Education and Sports Department published the draft Maharashtra Private Coaching Centers (Registration and Regulation) Act, 2026, inviting suggestions and objections from stakeholders before finalisation of the proposed law.
The draft Act seeks to establish a regulatory framework for private coaching centres across the State, with a focus on the quality of education, student mental wellbeing, infrastructure and safety standards, fee regulation and grievance redressal mechanisms.
Schools, Colleges and Hospitals in Maharashtra Covered Under ESI Scheme: ESIC Clarification
On 27 July 2026, the Employees’ State Insurance Corporation (ESIC) issued a circular regarding coverage of educational institutions, medical institutions and other establishments in Maharashtra under the Code on Social Security, 2020.
FOREIGN LEGISLATION
Birth Tourism Under Scrutiny: US Tightens Visa Rules Through Executive Order
On 6 August 2026, the White House announced an executive order aimed at curbing birth tourism and strengthening enforcement of immigration rules governing temporary visa categories.
