This week in Indian law: The Supreme Court delivered a landmark constitutional judgment striking down the Tamil Nadu Governor's prolonged withholding of assent to state bills, and the RBI cut the repo rate for the second consecutive time, shifting to an accommodative stance. Two major developments with far-reaching implications for federalism and the economy. 4 significant legal developments this week across constitutional rights and regulatory policy.
Top story
SC Strikes Down TN Governor's Withholding of Assent to State Bills
Category: constitutional-rights | Date: 8 April 2025 | Source: Supreme Court of India
The Supreme Court, in State of Tamil Nadu v. Governor of Tamil Nadu, unanimously held that Governor R.N. Ravi's prolonged withholding of assent to ten state legislative bills — some pending for over 17 months — was illegal and erroneous under Articles 200 and 201 of the Constitution. A Division Bench of Justice J.B. Pardiwala and Justice R. Mahadevan ruled that the Governor had exceeded his constitutional authority. The Court invoked Article 142 to deem the pending bills as having received assent.
Why it matters: This judgment fundamentally clarifies the scope of gubernatorial discretion under Article 200. Governors across India must now act on state bills within a reasonable timeframe — indefinite withholding of assent is unconstitutional. The ruling strengthens state legislative autonomy and has immediate implications for Governor-State standoffs in multiple states.
Read more: Veritect analysis
Regulatory updates
RBI Cuts Repo Rate to 6%, Shifts Stance to Accommodative
Regulator: RBI | Date: 9 April 2025 | Source: RBI
The Reserve Bank of India's MPC cut the policy repo rate by 25 basis points to 6.00% — the second consecutive reduction — and shifted its monetary policy stance from neutral to accommodative. The accommodative stance signals that further rate cuts are more likely than rate hikes, creating a strong easing trajectory. The cumulative reduction since February 2025 now stands at 50 basis points.
Key point: The accommodative stance is a significant signal — banks should prepare for further lending rate reductions, and borrowers can expect cheaper credit in the coming quarters.
Also this week
- Parliament inter-session period — With the Budget Session adjourned sine die, the legislative focus shifts to regulatory and executive action.
- SEBI Specialised Investment Fund — SEBI issued procedural specifications for the new Specialised Investment Fund (SIF) category introduced earlier in the year.
By the numbers
- 17 months — Duration the TN Governor withheld assent to state bills, held illegal by SC
- 6.00% — New repo rate after RBI's second consecutive cut
- 10 — Number of state bills deemed to have received assent by SC order
Looking ahead
- April 14-18: SC to hear child trafficking and criminal law matters
- Mid-April: SEBI enforcement actions on insider trading cases expected
- Late April: SC Constitution Bench to consider arbitral award modification question
This is the Veritect Weekly Legal Roundup for Week 15 of 2025. For daily updates, visit our legal news page. Subscribe to receive this roundup every Monday morning.
Veritect provides this content for informational purposes and does not constitute legal advice.