This week in Indian law: The Supreme Court delivered a landmark judgment declaring menstrual health and hygiene a fundamental right under Article 21 of the Constitution. The Union Budget 2026-27 proposed a complete replacement of the Income-Tax Act alongside revised tax slabs and new startup incentives. MeitY amended IT intermediary guidelines to introduce AI-specific compliance obligations for digital platforms. 10 significant legal developments this week across constitutional rights, legislative policy, regulatory updates, and technology law.
Top story
SC Declares Menstrual Health a Fundamental Right Under Article 21
Category: constitutional-rights | Date: 30 January 2026
The Supreme Court held that menstrual health and hygiene constitutes a fundamental right under Article 21 of the Constitution, marking a significant expansion of health rights jurisprudence. The Court directed both state and central governments to ensure free sanitary pad availability in all government schools and workplaces, recognising that lack of menstrual hygiene access impedes the right to life and dignity. The judgment builds on the Court's established line of authority that the right to health is an integral component of the right to life, extending it specifically to menstrual health as a distinct constitutional entitlement. This is the first occasion on which the Supreme Court has explicitly recognised menstrual health as a standalone fundamental right rather than subsuming it within broader health rights.
Why it matters: Employers, educational institutions, and state governments must now treat menstrual hygiene provision as a constitutional obligation — non-compliance could attract writ challenges under Article 226 or Article 32.
Court judgments
SC: Compensatory Allowances Part of Wages Under Factories Act
Date: 29 January 2026
The Supreme Court clarified that compensatory allowances form part of "wages" under the Factories Act for the purpose of calculating overtime entitlements. The ruling resolves a longstanding ambiguity that had led to inconsistent practices across states and industries regarding overtime computation.
Key point: Employers must recalculate overtime pay to include compensatory allowances — past underpayments could face retrospective claims under the Factories Act.
Delhi HC: Marital Discord Valid Ground for Abortion Under MTP Act
Date: 31 January 2026
The Delhi High Court permitted termination of pregnancy based on marital discord, expanding the interpretation of "grave injury to mental health" under the Medical Termination of Pregnancy Act. The Court held that the emotional and psychological distress arising from severe marital discord falls within the statutory ground of risk to mental health.
Key point: The ruling broadens access to legal abortion by recognising marital conflict as a qualifying ground under the MTP Act's mental health provision.
SC: Prior Written Demand Not Required for Industrial Dispute
Date: 30 January 2026
The Supreme Court held that a formal written demand is not a precondition for raising an industrial dispute under the Industrial Disputes Act. The Court reasoned that imposing such a technical requirement would defeat the protective purpose of the legislation.
Key point: Workers and trade unions can raise industrial disputes without first serving a written demand — oral demands or conduct indicating a dispute suffice.
Legislative and policy developments
Union Budget 2026-27: New Income-Tax Act and Key Fiscal Measures
Date: 1 February 2026
The Union Budget 2026-27 introduced the most significant fiscal overhaul in recent years: a complete replacement Income-Tax Act to simplify the tax code. Key measures include revised income tax slabs offering relief to the middle class, enhanced startup incentives, and an expanded MSME credit guarantee framework. The Budget also proposed changes to customs duty structures and introduced new provisions for digital economy taxation.
Why it matters: Tax practitioners must begin preparation for the transition to the new Income-Tax Act regime — implementation timelines, transitional provisions, and savings clause applicability will dominate advisory work through the year.
Customs Baggage Rules 2026: Revised Duty-Free and Import Framework
Date: 1 February 2026
The government notified the Customs Baggage Rules 2026, replacing the existing framework with revised duty-free allowances for incoming travellers. The new rules update permissible quantities and value thresholds for personal imports.
Key point: International travellers and customs practitioners should note the revised duty-free limits effective from the date of notification.
Regulatory updates
RBI Rationalises FPI Investment Under Voluntary Retention Route
Date: 3 February 2026
The Reserve Bank of India simplified the regulatory framework governing foreign portfolio investor investments under the Voluntary Retention Route. The revised norms streamline operational requirements and reduce compliance friction for FPIs choosing longer investment horizons in Indian debt markets.
Why it matters: Foreign investors and fund managers gain operational flexibility under the simplified VRR framework, potentially increasing FPI flows into Indian fixed-income markets.
MCA Notifies 10 New ROC Offices Nationwide
Date: 2 February 2026
The Ministry of Corporate Affairs expanded its registrar network by notifying 10 new Registrar of Companies offices across India. The expansion aims to reduce processing times and improve accessibility for company registration and annual filing compliance.
Key point: Companies incorporated in the jurisdictions of new ROC offices should verify their filing requirements and any transitional arrangements for pending applications.
Offshore Mineral Mining Prevention Rules 2026 Notified
Date: 3 February 2026
The central government notified new rules governing offshore mineral mining, establishing a regulatory framework for prevention and regulation of mineral extraction in territorial waters and the exclusive economic zone.
Key point: Mining companies with offshore interests must review the new compliance requirements before commencing or continuing extraction activities.
MeitY Amends IT Intermediary Guidelines for AI Compliance
Date: 4 February 2026
The Ministry of Electronics and Information Technology amended the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules to introduce AI-specific compliance requirements. Social media platforms and digital intermediaries deploying AI systems must now meet additional transparency, labelling, and accountability obligations.
Why it matters: Platform operators, AI developers, and technology counsel must audit existing AI deployments against the new compliance framework — non-compliance risks intermediary safe harbour protection under Section 79 of the IT Act.
By the numbers
- 10 — New ROC offices notified by MCA, the largest single expansion of the registrar network in recent years
- 2026-27 — First Union Budget to propose a complete replacement of the Income-Tax Act since the 1961 legislation
Looking ahead
- Budget implementation: Parliament to debate and pass the Finance Bill 2026, which will enact the new Income-Tax Act provisions
- SC hearings resume: Multiple Constitution Bench matters listed for February, including pending challenges on electoral bonds and environmental clearances
- SEBI board meeting: Expected in mid-February, likely to consider amendments to listing obligations and disclosure requirements
This is the Veritect Weekly Legal Roundup for Week 05 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.