This week in Indian law: The Supreme Court delivered its first major interpretation of the Bharatiya Nagarik Suraksha Sanhita (BNSS), clarifying the prior sanction requirement for prosecuting public servants under Section 175. The NCLAT issued a significant ruling excluding EPF dues entirely from the IBC liquidation waterfall, protecting workers' retirement savings. SEBI eased compliance for listed companies by raising the HVDLE disclosure threshold to Rs 5,000 crore. Five significant legal developments this week across criminal law, corporate insolvency, regulatory updates, and High Court judgments.
Top story
SC Interprets BNSS Section 175 on Public Servants
Category: Criminal Law | Date: 23 January 2026 | Source: sci.gov.in
The Supreme Court delivered its first substantive interpretation of Section 175 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), which replaced Section 197 of the Code of Criminal Procedure, 1973 as the provision requiring prior sanction before prosecuting public servants for acts done in the discharge of official duty. The Court clarified the scope of the protection, holding that the test remains whether the act complained of has a reasonable nexus with the discharge of official functions, and that the transition from CrPC to BNSS does not alter the fundamental threshold for when sanction is required. The bench also addressed the interplay between Section 175 BNSS and Section 17A of the Prevention of Corruption Act, noting that the two provisions operate in distinct spheres.
Why it matters: This is the first authoritative Supreme Court guidance on the new criminal code's public servant prosecution framework. Investigating agencies, prosecutors, and defence counsel handling cases against government officials now have clarity on how Section 175 BNSS will be interpreted, and can rely on this ruling in pending matters where the CrPC-to-BNSS transition has created procedural uncertainty.
Read more: Veritect analysis
Court judgments
SC Reaffirms Corroboration Standard for Confessions Under NDPS
Court: Supreme Court of India | Date: 24 January 2026
The Supreme Court reaffirmed that confessions recorded under Section 67 of the Narcotic Drugs and Psychotropic Substances Act, 1985 require independent corroboration before they can form the basis of a conviction. The Court held that the statutory presumption under the NDPS Act does not relieve the prosecution of its obligation to produce corroborating evidence, particularly where the accused retracts the confession at trial.
Key point: Retracted confessions under the NDPS Act cannot sustain a conviction without independent corroborating evidence, reinforcing the higher standard required in narcotics prosecutions.
sci.gov.in · Veritect analysis
Punjab and Haryana HC: ART Act No Bar to IVF With One Child
Court: Punjab and Haryana High Court | Date: 25 January 2026
The Punjab and Haryana High Court ruled that the Assisted Reproductive Technology (Regulation) Act, 2021 does not bar couples who already have one child from accessing IVF treatment. The Court held that the Act's restrictions must be read in harmony with the reproductive autonomy of individuals guaranteed under Article 21, and that a blanket reading barring IVF for couples with existing children would be unconstitutional.
Key point: The ART Act does not prohibit IVF for couples with one child; reproductive autonomy under Article 21 prevents a blanket restriction on assisted reproduction based on existing family size.
Regulatory updates
SEBI Raises HVDLE Threshold to Rs 5,000 Crore Under LODR
Regulator: SEBI | Date: 22 January 2026 | Source: sebi.gov.in
SEBI raised the high-value-deal-linked-entity (HVDLE) disclosure threshold to Rs 5,000 crore under the Listing Obligations and Disclosure Requirements Regulations, easing compliance burdens for listed companies. Under the earlier lower threshold, mid-cap and several large-cap companies were required to make detailed disclosures for transactions with linked entities that many considered disproportionate to the materiality of the transactions.
Why it matters: Listed companies and their compliance teams should immediately review their HVDLE reporting frameworks. Companies that previously crossed the lower threshold but fall below Rs 5,000 crore will see significant reduction in disclosure obligations, freeing up compliance resources.
sebi.gov.in · Veritect analysis
NCLAT: All EPF Dues Excluded From IBC Liquidation Estate
Tribunal: National Company Law Appellate Tribunal | Date: 26 January 2026
The NCLAT held that Employees' Provident Fund dues are completely excluded from the liquidation estate under the Insolvency and Bankruptcy Code, 2016. The Tribunal reasoned that EPF amounts held by the corporate debtor are held in trust for employees and do not form part of the debtor's assets available for distribution to creditors under Section 53 of the IBC. This resolves a recurring dispute in insolvency proceedings where liquidators and financial creditors have argued that EPF dues should be subject to the statutory waterfall.
Why it matters: Workers' retirement savings in EPF are now confirmed to be entirely ring-fenced from the IBC liquidation process. Resolution professionals, liquidators, and financial creditors must account for EPF exclusion when computing the liquidation estate. The EPFO can recover its full dues outside the waterfall.
By the numbers
- Rs 5,000 crore — New HVDLE disclosure threshold set by SEBI, up from the earlier lower limit
- 175 — The BNSS section number that replaces CrPC Section 197 on public servant prosecution sanction, now authoritatively interpreted by the Supreme Court
- 100% — Proportion of EPF dues excluded from IBC liquidation estate as per the NCLAT ruling
Looking ahead
- Republic Day week: Courts observe a holiday on 26 January; reduced judicial activity expected around the national holiday
- Budget Session preparation: Parliament's Budget Session typically commences in the last week of January or first week of February, with the Economic Survey and Union Budget expected shortly
- SEBI: Market participants await detailed FAQs on the revised HVDLE threshold and its application to pending disclosures
- BNSS transition: The Section 175 ruling will likely prompt further litigation testing other provisions of the new criminal codes, with several matters already pending before various High Courts
This is the Veritect Weekly Legal Roundup for Week 4 of 2026. 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.