Tax Proposal On REITs And InvITs (Video)

India's private capital market is attracting significant investor interest across manufacturing, digital infrastructure, energy, healthcare and private credit sectors. However, deploying capital effectively requires increasingly sophisticated structuring that addresses interconnected regulatory, financing, governance and exit considerations. Success demands coordination across multiple disciplines and collaboration between advisers with deep local knowledge and international cross-border experience.

SEBI's new framework for ESG debt securities establishes comprehensive disclosure requirements, third-party verification standards, and alignment with international principles for green bonds, social bonds, sustainability bonds, and sustainability-linked bonds. How will these regulatory requirements reshape India's sustainable finance market and address concerns about greenwashing while mobilizing capital for climate and social development goals?

The Maharashtra Stamp (Fourth Amendment) Act, 2026 introduces a new dedicated stamp duty framework for financial and bank guarantees in Schedule I of the Maharashtra Stamp Act, 1958. This amendment establishes differentiated duty rates based on guarantee value and type, addressing long-standing ambiguities in how such instruments were previously taxed under generic security bond provisions. The reform has significant implications for banks, NBFCs, and entities dealing with government contracts, though quest

India's Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) were conceived in the aftermath of the 2008 global financial crisis as vehicles to channel long-term institutional capital into India's chronic infrastructure and real estate funding gaps.

In the world of finance, the term insider trading often evokes images of shady deals and hidden agendas. But what exactly is insider trading? Why is it illegal, and how do laws in India seek to prevent it? Let's dive into this intriguing subject, simplifying the complexities surrounding insider trading laws in India, while exploring the impact of these laws on the financial markets and their role in maintaining fairness.

The Debts Recovery Tribunal, also known as DRT, follows certain rules which relate to the time limits mentioned in the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act or the Act). These limits are not merely procedural requirements and instead are factors which influence the right of the borrower or guarantor depending on the stage of recovery proceedings in question.

Private equity exits from India have reached record levels, but converting investment value into liquidity requires careful navigation of regulatory frameworks, tax structures, and strategic route selection. How can sponsors optimise exit readiness throughout the investment lifecycle to maximise deal certainty and preserve optionality across strategic sales, IPOs, secondary transactions, and public market sell-downs?

On 10 August 2026, the Securities and Exchange Board of India (SEBI) issued a consultation paper titled “Review of provisions related to ISIN for Debt Securities” (Consultation Paper), proposing the following key changes.

An accredited investor is a person SEBI recognises as having the financial capacity and sophistication to bear the risks of complex investment products. Accredited status acts as a gateway to SEBI-regulated products, including Alternative Investment Funds (AIFs) and Portfolio Management Services (PMS), and relaxes minimum ticket sizes. To qualify, an investor must meet an income or net worth threshold and obtain certification from a SEBI-recognised accreditation agency.

The law of secured asset recovery in India has long been dominated by the binary contest between borrower and bank. Yet every so often a case arises that exposes the fragility of third-party interests caught in the crossfire. One such matter came before the Debt Recovery Tribunal in Chennai on 06.08.2026, when Presiding Officer Smt. S.V. Gowramma was called upon to decide whether a successful auction purchaser could be shut out of proceedings that would determine whether it ever obtained the property it had paid for.

In Aerocom Cushions Private Limited v. Assistant Commissioner (Anti-Evasion), CGST & CX, Nagpur-1, the Nagpur Bench of the Bombay High Court quashed a Show Cause Notice demanding Goods and Services Tax (“GST”) on the assignment of leasehold rights in an industrial plot allotted by the Maharashtra Industrial Development Corporation (“MIDC”). The Court held that such an assignment constitutes a transfer of benefits arising out of immovable property and does not amount to a “supply of service” under the Central Goods and Services Tax Act, 2017 (“CGST Act”).

India’s Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) were designed as tax-efficient ways to invest in income-producing assets through a regulated, transparent structure. That promise remains, but three successive legislative reforms between 2023 and 2026 have changed the tax structure for these business trusts and their investors.

Recently, in Eurochem North-West-2 v. Tecnimont SPA, the Hon'ble Bombay High Court rejected Eurochem's application seeking an injunction to restrain Tecnimont from disposing of its assets in India up to the value of Eurochem's claim, as evidenced by a judgement it secured from the Commercial Court of the City of Moscow ("Moscow Court").

The article summarises recent Supreme Court judgment that provides important clarity on the law governing post facto environmental clearances by reaffirming the primacy of prior environmental clearance and delineating the narrow circumstances in which statutory regularisation may be permissible. It also draws a clear distinction between delegated legislation and executive action, limiting the scope for future administrative regularisation.

The determination of whether a person qualifies as a “person resident in India” under the Foreign Exchange Management Act, 1999 (“FEMA”) is fundamental to it’s regulatory framework. Residential status determines whether a person is governed by the regulatory regime applicable to residents or by the restrictions applicable to persons resident outside India in relation to foreign investment, acquisition of immovable property, capital account transactions, and the establishment of a place of business in India.

India’s real estate sector has witnessed unprecedented growth over the last decades, driven by institutional investment, large-scale urbanization and increasingly sophisticated contractual structures. As projects become larger and transaction timelines longer, contracting parties are placing greater emphasis on contractual risk allocation. Among the provisions attracting increased attention are force majeure clauses and contractual protections against unforeseen circumstances.

The dispute arose from competing claims to agricultural land in Karnataka, but the principles reaffirmed by the Court extend well beyond the facts of the case. The judgment clarifies the limited operation of Section 43 of the Transfer of Property Act, 1882, outlines the permissible scope of rectification deeds, and reaffirms the limits of the High Court's jurisdiction under Section 100 of the Code of Civil Procedure, 1908.

In July 2026, reports emerged that the Reserve Bank of India (RBI) is set to introduce standardised guidelines for property title searches that banks must perform before approving secured loans. The proposed framework is expected to specify a minimum period for title searches, identify essential documents and records to be verified, and outline uniform standards for preparing title search reports. If implemented, it will be the first time India’s banking regulator applies a uniform minimum standard for title due diligence across all scheduled commercial banks.

The Supreme Court's decision in Kolkata Municipal Corporation v. Bimal Kumar Shah marks a significant development in Article 300A jurisprudence. While upholding the concurrent findings of the Single Judge and the Division Bench of the Calcutta High Court, the Supreme Court identified seven constitutional requirements for a valid compulsory acquisition of immovable property. The ruling reaffirms that, although the right to property is no longer a fundamental right after the 44th Constitutional Amendment, it remains constitutionally protected under Article 300A against arbitrary deprivation by the State.

India’s competition law framework has long recognised follow-on private compensation claims. However, nearly two decades since inception, this remedy remains largely dormant, with only 11 applications filed and just one decided on merits. Compensation applications are now moving towards substantive hearings, the Competition (Amendment) Act, 2023 (2023 Amendment) has expanded the statutory gateway, and the Competition Commission of India (CCI) is showing growing appetite for technical analysis that compensation adjudication demands.