Enrolled Agent Course: Providers, Fees & Career Guide

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November 26, 2025

Enrolled Agent Course in India: Compare top EA course providers, fees, exam registration process & career opportunities. Complete guide for Indian professionals. This article is written by Medha Vinod, Senior Associate at LawSikho.

If you’re an Indian accounting professional looking to break into the lucrative US taxation market without relocating, the Enrolled Agent (EA) credential might be your most strategic career move. Unlike the CPA, which requires 150 credit hours and state licensing, the EA is a federal credential that authorizes you to represent taxpayers before the IRS across all 50 states. What makes it particularly attractive for Indian professionals is the lack of educational prerequisites beyond high school and the ability to work remotely for US clients while based in India.

As of September 2024, India has 2,683 active Enrolled Agents, reflecting a remarkable 19% year-on-year growth. This surge isn’t coincidental; US tax preparation and advisory firms are increasingly outsourcing to India, creating thousands of high-paying remote opportunities. But here’s the catch: while the IRS allows self-study using free publications, navigating thousands of pages of dense tax code without guidance typically results in failed attempts and wasted exam fees. This is where structured EA courses become game-changers, dramatically improving your pass rates while cutting preparation time by half.

What is the Enrolled Agent Credential?

Federal Authorization to Practice Before the IRS

The Enrolled Agent represents the highest credential the Internal Revenue Service awards to tax professionals. Unlike CPAs, who are state-licensed, your EA credential is federally recognized and valid nationwide without geographical restrictions. This means you can represent clients before any IRS office in America, regardless of where you’re physically located—a massive advantage for Indian professionals working remotely.

To earn this credential, you must pass the three-part Special Enrollment Examination (SEE) covering –

Individual taxation (Part 1),
Business taxation (Part 2), and
Representation practices and procedures (Part 3).

Each exam is comprehensive, testing both theoretical knowledge and practical application of US tax law through multiple-choice questions and task-based simulations. The Prometric-administered exam is computer-based and available year-round at testing centers across India.

Maintaining Your EA Status

Once certified, you’re not finished; the IRS requires enrolled agents to obtain 72 hours of continuing education every three years. A minimum of 16 hours must be earned per year, two of which must be on ethics. Enrolled agents must use an IRS-approved CE provider. This ensures EAs stay current with constantly evolving tax laws, new IRS procedures, and emerging compliance requirements.

The ongoing education commitment separates serious tax professionals from those who merely passed an exam. Clients and employers value EAs specifically because this continuing education requirement guarantees you’re not operating on outdated knowledge. For Indian professionals, many US-based providers offer online continuing education courses that fit conveniently into your schedule without requiring travel.

Top 1EA Course Providers: US vs India

US-Based Premium Providers

Gleim EA Review stands out with the industry’s largest question bank, offering over 3,800 practice questions that cover every conceivable exam scenario. Their Premium Review package includes SmartAdapt technology that identifies your weak areas and creates customized practice sessions. The course provides 12 months of access with video lectures, simulations, and unlimited instructor support. Gleim’s philosophy is comprehensive coverage—they don’t predict exam content but ensure you’re prepared for anything the IRS throws at you.

Surgent EA Review revolutionized EA preparation with A.S.A.P. Technology, the most sophisticated adaptive learning system available. Their algorithm analyzes your performance across thousands of data points to create a truly personalized study path that adjusts in real-time. Surgent claims their average student passes using just 61 hours of study time per part—dramatically lower than the 100-hour industry standard.

Becker EA Review brings CPA review expertise to the EA market with their AI-powered Newt assistant. This artificial intelligence study companion answers your tax questions in real-time, provides additional examples when concepts are unclear, and can quiz you conversationally.

India-Based Providers with Local Support

LawSikho has the 6-month Certificate Program in Tax Advisory and Representation for Enrolled Agent Preparation. This is designed around the official three-part Special Enrollment Examination (SEE). The program follows a structured curriculum covering Part 1 (Individuals), Part 2 (Businesses), and Part 3 (Representation, Practices & Procedures), with detailed modules that mirror the SEE domain structure. Students are expected to commit around 6–8 hours per week, and the course is priced at ₹75,000. The curriculum is delivered through online classes, reading modules, and assessments aligned with IRS-prescribed question domains. The program is also recognised by the National Skill Development Corporation (NSDC), and students receive a Skill India–backed certificate upon successful completion.

Simandhar Education serves as Becker’s authorized Indian partner, offering the complete Becker course with rupee pricing (₹85,000-1,10,000), EMI options through Indian banks, and faculty support in Indian time zones. They conduct regular classroom and live online sessions with Indian instructors who understand both US and Indian taxation, helping you make conceptual connections. The added benefit is local payment convenience and career counseling specifically for the Indian job market.

The Wall Street School (TWSS) provides end-to-end EA training with a strong emphasis on placement assistance. Their program (₹50,000-80,000) includes recorded lectures, live doubt-clearing sessions, Gleim study materials, and a structured curriculum designed for Indian students. TWSS claims strong placement records with US tax firms and includes interview preparation as part of their package, making you job-ready beyond just exam-ready.

Hi-Educare operates as Gleim’s official Indian partner, providing access to Gleim’s extensive question bank with local faculty support and weekend batch options specifically for working professionals. Their pricing is competitive, and they offer additional India-specific career counseling focusing on remote work opportunities with US firms.

EA Course Fees in India: Complete Cost Breakdown

Understanding Your Investment Options

Direct purchases from US providers like Gleim, Becker, and Surgent cost approximately ₹50,000-1,20,000 at current exchange rates. While these require international payment methods (credit cards or PayPal), you get direct access to the latest course updates, cutting-edge technology, and 24/7 US-based support teams. The premium pricing reflects sophisticated adaptive learning systems, extensive question banks, and continuous content updates aligned with IRS changes.

Indian providers offer more accessible pricing ranging from ₹40,000 to ₹1,10,000, with significant advantages beyond just lower cost. Rupee pricing eliminates foreign exchange volatility concerns; you know exactly what you’re paying without currency fluctuation surprises. Flexible EMI options through Indian banks let you spread payments over 6-12 months (typically ₹5,000-10,000 monthly), making EA training accessible without large upfront payments. Most importantly, local faculty support in convenient Indian time zones means your questions get answered during reasonable hours, not at 2 AM.

Hidden Costs to Budget For

Beyond course fees, factor in exam registration costs of approximately $267 per part, totaling ₹60,000+ for all three parts. Retake fees match original exam costs, so failed attempts quickly become expensive, a strong argument for investing in quality course preparation. If you plan to take exams at Prometric centers requiring travel, budget for accommodation and transportation. Additionally, once certified, you’ll need to budget for continuing education..

When evaluating course costs, calculate the return on investment timeline. If a premium course helps you pass faster and start earning EA-level salaries (₹4.5-6.5 lakhs for freshers) three months earlier, that additional salary far exceeds the extra course cost. This ROI calculation makes premium courses particularly attractive for working professionals who can immediately leverage the credential for raises or new opportunities.

How to Choose the Right EA Course for Your Needs

Match the Course to Your Background

Your educational foundation significantly influences which course style works best. Commerce graduates (B.Com, M.Com) with solid accounting fundamentals can handle courses like Becker or Surgent that move quickly through basics and dive deeper into US-specific rules. These courses assume accounting literacy and won’t feel remedial or overwhelming if you understand fundamental concepts like depreciation, basis, and capital gains.

For those without formal accounting education—perhaps transitioning from engineering, science, or other fields- you’ll benefit from courses including accounting basics. Indian providers like TWSS and Simandhar often include preliminary modules covering fundamental accounting concepts before jumping into US taxation. These foundational sections are invaluable if accounting terminology feels unfamiliar.

If you have US taxation experience from KPO/BPO roles but lack formal credentials, you’re in a unique position. You understand practical return preparation but may need structured knowledge of the theory and regulations behind your work. Prioritize courses with strong simulation components and real-world scenario practice that resonate with your hands-on experience while filling theoretical gaps.

Consider Your Available Study Time

Full-time students or those taking career breaks can dedicate 4-6 hours daily, making comprehensive courses ideal. With this time investment, you can complete all three parts in 3-4 months following a structured daily schedule. The extensive study material doesn’t feel overwhelming when you have time to work through it systematically, and thoroughness ensures a strong foundational understanding.

Working professionals managing only 1-2 hours daily on weeknights and weekends need efficiency-focused courses with adaptive learning. When time is scarce, you cannot afford to waste it on topics you’ve already mastered. Surgent’s adaptive technology becomes particularly valuable here, focusing your limited hours on weak areas while skipping what you know. Look for courses offering 18-24 months of access rather than standard 12 months, giving flexibility to pause during busy work seasons.

Evaluate Technology and Support Features

Quality mobile apps transform wasted time into productive study sessions—commutes, lunch breaks, and waiting rooms become opportunities for progress. The best EA course apps offer full functionality, including video streaming, question banks, performance tracking, and note-taking. Offline capability is crucial for India, where internet connectivity can be inconsistent. Apps allowing downloaded content for offline use ensure uninterrupted study regardless of data availability.

Personal study counselors who check in regularly, adjust your study plan based on progress, and provide motivation during difficult periods dramatically increase completion rates. These counselors help with time management, study strategy, exam anxiety, and psychological challenges of multi-month preparation. Indian providers often facilitate India-specific WhatsApp groups where students discuss timezone-appropriate schedules, share local exam center experiences, and celebrate successes together.

How to Register and Schedule Your EA Exam

Creating Your Prometric Account

Before you can schedule your EA exam, you must create an account on the Prometric website and apply for IRS authorization to test. Visit the IRS Special Enrollment Examination page and complete the online application, including your personal information, educational background, and professional history. The IRS conducts a background check before approving your application—this typically takes 2-4 weeks, but can extend to 6-8 weeks during peak seasons.

Once the IRS approves your application, you’ll receive a Notice to Schedule containing your authorization number. This notice is valid for 12 months from issuance, meaning you must take all three exam parts within this window or your authorization expires. Many candidates schedule all three parts strategically, some prefer consecutive scheduling (all three within 2-3 months), while others space them out for thorough preparation of each section.

Scheduling at Indian Test Centers

Prometric operates multiple testing centers across India. Bangalore, Hyderabad, and New Delhi are the Exam Centres for 2025-26. Visit the Prometric website and use your authorization number to search available dates and locations. Exam appointments fill quickly during peak tax season (January-April), so schedule early to secure your preferred date and center. Each exam part costs $267, payable via credit card during scheduling.

The EA exam is offered year-round in two testing windows: May 1 through February 28 of the following year (testing window closes March-April for annual updates). You can take the three parts in any order, though most candidates start with Part 1 (Individuals) since it’s foundational. Schedule your exam at least 3-4 weeks after completing your course preparation to allow final review time without rushing.

What to Expect on Test Day

Arrive at the Prometric center 30 minutes before your scheduled time with two forms of identification, including one government-issued photo ID (passport, Aadhaar card). You’ll be assigned a locker for personal belongings—only your ID will enter the testing room. The center provides scratch paper and a calculator; you cannot bring your own materials. Each exam part consists of 100 multiple-choice questions delivered in three sections called “testlets,” and you have 3.5 hours to complete it.

The computer-based exam displays questions on screen with multiple answer choices. You can flag uncertain questions for review and move back through questions within each testlet, but once you submit a testlet, you cannot return to it. The exam software includes a basic calculator and access to authoritative IRS publications for reference. Expect your preliminary pass/fail result immediately upon completing the exam, with your official score report available within 24-48 hours through your Prometric account.

Career Opportunities After EA in India: Beyond Tax Preparation

Remote Work with US Tax Firms

The most common career path for Indian EAs is remote employment with US tax preparation firms, CPA practices, and accounting companies that outsource to India. These positions typically start at ₹4.5-6.5 lakhs annually for freshers and scale to ₹6-10 lakhs within 3-4 years of experience. You’ll prepare individual tax returns (Form 1040), business entity returns (partnerships, S-Corps, C-Corps), handle tax research questions, and communicate directly with US-based clients and partners.

Remote EA positions offer significant lifestyle advantages, including work-from-home flexibility, exposure to complex US tax scenarios, and earning US-competitive salaries while maintaining Indian living costs. During peak tax season, expect 50-60-hour work weeks with overtime pay, followed by lighter summer months. Many firms offer benefits, including health insurance, performance bonuses, and sponsored continuing education to maintain your credential.

Building Your Own Practice Serving NRIs

Entrepreneurial EAs can establish independent practices serving Non-Resident Indians (NRIs) and US citizens living in India. This growing market includes software professionals in the US needing Indian tax expertise, Indian residents with US income sources, and US citizens working for multinational companies in India. Your unique position, understanding both tax systems, makes you invaluable for cross-border taxation issues that purely US-based or India-based advisors struggle to navigate.

Starting your own practice requires business development skills beyond tax knowledge. You’ll need to market your services through professional networks, build a client base through referrals, handle your own business administration, and maintain professional liability insurance. Initial years can be challenging with irregular income, but established practices can generate ₹15-20 lakhs annually with proper client relationships and reputation building.

Corporate Tax Departments and Consulting

Large Indian corporations with US subsidiaries, international operations, or American parent companies increasingly need EA expertise for transfer pricing, international tax compliance, and cross-border transaction structuring.

Consulting firms, including Big 4 (Deloitte, PwC, EY, KPMG) and mid-tier practices, hire EAs for their international tax advisory divisions. These roles focus on high-complexity tax planning for corporate clients, mergers and acquisitions tax structuring, and international tax compliance projects. The intellectual challenge is greater than pure return preparation, and compensation reflects this, expect ₹10-18 lakhs with 5+ years of EA experience in consulting environments.

Conclusion

The Enrolled Agent credential opens doors to lucrative US taxation careers without requiring relocation, extensive prerequisites, or years of additional education. While self-study remains possible, investing in a structured EA course dramatically improves your pass rates, reduces preparation time, and often pays for itself through avoided retake fees and faster credential completion. Choose your course based on your educational background, available study time, and career goals rather than focusing solely on price differences that become irrelevant once you’re earning EA salaries.

Whether you select US providers like Gleim, Becker, or Surgent for cutting-edge technology, or Indian partners offering localized support and EMI options, prioritize course quality, adaptive learning features, and proven outcomes. Remember that the EA journey doesn’t end with passing exams; maintaining your credential through continuing education and building practical experience transforms that certification into a thriving international career. Start your EA preparation today, and you could be representing US taxpayers before the IRS within 6-12 months.

Why POSH compliance is more than just an HR checklist

By

Anshi Mudgal

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November 26, 2025

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Why POSH compliance is more than just an HR checklist — Image Source: https://shorturl.at/4MRVe

This article is written by Adv. Ankit Tiwari. Partner at Lawyers Space and a Corporate Lawyer specialising in POSH compliance, audits and workplace policy frameworks. With over six years of experience, he helps organisations build a legally sound, respectful and harassment free workplace while strengthening their overall compliance culture.

Table of Contents

Introduction

As we know, the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, which is also known as the POSH Act, is not just paperwork in workplaces. It is a very important constitutional protection of a woman’s dignity working in a corporate office. This Act was begun from the famous case of Vishaka v. State of Rajasthan, (1997). The POSH Act placed a statutory duty on employers, ICCs, and district authorities to prevent sexual harassment against women in workplaces. It also obligates the employers, ICCs, and district authorities to conduct an investigation and provide a remedy to the victim. Though many organisations treat the Act as just paperwork but the law gives a clear process of implementation.

So, let’s discuss how a firm should use the POSH Act that will actually solve the problem and minimise the risks of offences against women.

Legal framework: The main purpose of the Act.

The statute and its provisions give multiple obligations:

Constitution of ICCs

Section 4 of the Act says that the organisation will form an Internal Complaints Committee consisting of ten or more members. The main role of the committee is to launch complaints if there is a breach, conduct an investigation and provide a remedy to the victim.

Employer duties

Section 19 of the Act talks about the obligations of the employers. Their responsibilities are generally to organise awareness programmes and assist the ICCs in procedural steps. And to maintain fairness and confidentiality.

Reporting & disclosure

Section 21-22 says that the ICCs will submit an annual report to the employer and the district officer. There are many recent amendments to the Act’s provisions that expand the scope of the statute.

Statutory baseline

Many organisations are being confused between constitution and effectiveness. The Act talks about a clear and active process. It talks about spreading awareness, interim relief, a timeline for inquiry and annual reporting. On the other hand, legal compliance requires documented, functioning processes and a proper legal backup, not just a committee.

The implementation challenge: According to the data

National and sectoral data are incomplete, but instructive. According to the Centre for Economic Data & Analysis (CEDA), Ashoka University, the number of reported complaints in India have increased over the last decades. But the number of reported cases is much higher than the number of solved cases. I think it shows improvement in awareness, but there is still a gap in resolution.

The Ministry of Corporate Affairs amended the Companies (Accounts) 2025 Rules, showing that the new practice requires detailed disclosures of reported complaints, resolved, pending (over 90 days) cases and workforce gender composition.

Data reality

The number of raw complaints is huge. An initial rise in complaints is generally a sign of trust building, but there are so many unsolved cases that clearly indicate systematic failure. The people who are analysing the report must keep a close eye on both the number of resolved cases and complaints made, including repeat offenders, and interim relief usage to understand the situation better.

Judicial enforcement: courts demand substance over form

The judicial decisions in recent years clarify that the ICC, on paper, means nothing if the inquiry and resolution process is weak.

Courts have held in so many cases that no perpetrators will be saved or shielded for their seniority or prestige. They cannot use their power or position to dominate a woman in the workplace. The judiciary has ordered independent probes and even Special Investigation Teams to investigate cases where internal enquiries were obstructed. For example, the Madhya Pradesh High Court in 2025 ordered an SIT to investigate allegations against the Vice-Chancellor of Rani Durgavati Vishwavidyalaya when the court found there were material gaps and an unexplained absence of CCTV evidence.
High-profile workplace criminal proceedings (e.g., the KEM Hospital matter in Mumbai, 2025) show that the court denies anticipatory bail to influential accused. Because in cases like this, there is always a chance of evidence tampering and frightening the victim.

Judicial trend

Judicial tolerance for technical compliance has less scope now. Employers cannot rely on forms alone. During the review process, if the committee finds that evidence was not preserved properly, interim relief was ignored, or there is a dominant influence of the management, the courts intervene directly.

Why the checklist mentality fails in practice

Common failure modes:

Superficial training

One-hour webinars do not change norms. The organisations need to take an approach towards adult learning and scenario-based programmes.

Under-resourced ICCs

Lack of upgraded investigation skills, absence in record keeping and lack of procedural fairness leave a significant gap. These gaps need to be fulfilled to meet the purpose of the Act.

Breach of confidentiality and fears of reprisals

Victims often fail to trust in HR-led procedures. Because they sometimes seem to appear that they have conflicting intentions. Also, the HR works for the company, so in some cases, they can be biased about an incident. And it can cause negative consequences for the victim.

Ecosystem blind spots

The employees need to interact with contractors, interns, vendors, and visitors. It leaves a gap where any incident can happen at the act of a third party. There is no strict process of resolution mentioned in the Act for situations like this, so I think it’s the organisation’s responsibility to come up with some new features in their internal policy.

Lack of outcome metrics

The organisation considers how many sessions they took on POSH and how quickly they constituted the ICCs. But I think their first priority should be the resolution of complaints, interim relief provided and statistics on repeat offenders.

Invalid in the practice

The core structure of complaints is mentioned in the Act. Still, there are so many gaps when it is time to implement the law. I think it’s the failure of the management. To fix this issue, the organisation need to make a systematic investment plan. Like, Appointing Independent members, keeping audit records, taking enforceable temporary measures, and hiring skilled investigators can be a good decision to regulate POSH compliance. If the organisation ignores it, it can face serious reputational loss, and it can also lead to litigation.

Reframing POSH as governance and risk management

Board oversight & KPIs

The ICCs need to submit a report on the number of complaints received, median resolution time, pending cases >90 days, interim relief uptake, and repeat offences on a quarterly basis. The MCA 2025 disclosure amendment increases the need for such reporting.

Leadership accountability

In case of POSH complaints, people from higher positions should prioritise non-interference, ICC recommendations, and visible action to make the implementation prominent. It will help to build trust in the organisation.

Expert ICCs

Certified trauma-informed training is really necessary for staff members. The management needs to think about strong, independent membership and rotation. Also, SLAs for acceptance and interim support.

Analysis from the outside

Every year, an independent review of a sample of ICC files and procedures is conducted to understand the growth and movements.

There should be an internal dashboard that will help to maintain the data, but we have to keep in mind that the privacy of the victim is a top priority.

Strategic payoff

There are so many benefits of adopting this approach, like better reporting to show trust, faster resolutions, fewer offenders and better employee branding that will help to reduce the number of offences. And the most important thing is that the cost of implementation is much higher than legal, reputational and operational expenses in a high-profile failure.

Operational plan 12-month plan (actionable steps)

The plan is structured in four steps to make the complaint process stronger. Let’s begin with the first step: the first and most important step should be taken is I think, governance and diagnosis, which means briefing the board, conducting a baseline audit of the current system, fixing the policy, and ensuring the internal committee meets all legal requirements.

The next phase (Months 3–6) is under development. Here, providing scenario-based training for committee members and managers, and creating simple tools like contract templates and induction, will help to make people aware of the problem.

Between Months 6 and 9, pilot and measure the success by launching an anonymous safety survey and dashboard. And also, having an external group audit will be effective. It will handle recently filed complaints.

Finally, in the last quarter (Months 9–12), report and embed these changes permanently.

Implementation hazards

Pilot paralysis is one of the most common failures. Organisations conduct a single pilot, declare it successful, and then switch back to passive maintenance. Measurement of needs, reallocation of resources, and ongoing executive attention are necessary to make real change.

Emerging issues: remote work, ecosystem coverage and gender scope

Remote & hybrid contexts

The Act’s definition of “workplace” (and judicial interpretation) covers work-related events and locations. So, in the remote work culture, there is a chance of harassment via messaging apps, video calls and client sites. Here, the employer needs to confirm digital conduct policies, such as an evidence preservation process and remote reporting channels.

Ecosystem coverage

In contractual work scenarios, induction and third-party training are very important to avoid problems during interaction with female staff.

Gender scope

The Act uses “aggrieved woman”; debates about gender-neutral redress continue. Many employers extend the policies to make their use more significant. It sometimes provides more effective coverage for the victim and covers all genders.

Policy nuance

The legal team of the organisation should monitor reform proposals, but they should also ensure a timely resolution to protect the victim. I think adopting special internal rules and a strong process for resolution can make a difference.

What non-compliance costs you

Judicial intervention

The courts can order a special team to investigate POSH cases if there is institutional ignorance by the management (RDVV and KEM matters are contemporary examples).

Regulatory exposure

The 2025 Companies (Accounts) Rules amendment helped to increase disclosure obligations of the internal committee. It gives a chance for board scrutiny.

Reputational harm

Media coverage of an incident can spread wrong news. It will hamper the brand’s name and reputation. It can also ruin their client relations, costing a lot of money.

Operational disruption

A very long-term investigation or getting involved in complex litigation can cause significant loss to the management.

Cost calculus

The correct board question is not “how much will compliance cost?” but “what will failure cost us?”

The high-profile failure of POSH governance often costs huge reputational and operational costs that surely exceed the required investment for strong POSH governance.

Conclusion — Embedding POSH in Organisational Governance

The evolution of the POSH Act over the past decades has revealed one truth that compliance is achieved through culture and practice. The Law is never just a symbol. It always represents a commitment to maintain equality, safety, accountability and fairness at every level. The recent judicial interventions and amendments by the Ministry of Corporate Affairs on enhanced disclosure surely show that passive adherence to the statutory text is not enough. Boards, compliance officers, and HR leaders must treat POSH as an extension of corporate governance and risk management frameworks, rather than treating it as an HR initiative. An effective application of the provisions mentioned in the Act will make the organisation more productive and successful, increasing its value and dignity.

At the end, compliance is not just the number of workshops conducted or the number of policies uploaded; it means that employees, regardless of gender or position, feel safe to report misconduct. Accepting POSH governance is not just a legal framework; I believe it is an ethical decision that shows institutional maturity. The law and judiciary continue to become stricter, so organisations that are taking much-needed approaches will stand stronger tomorrow. Not only as a legally binding entity but as a workplace that ensures fairness and justice.

Frequently asked questions:

Does the Act give protection to male employees in case of sexual harassment?

No, the POSH Act, 2013, presently, the Act’s purpose is to protect female employees in workplaces. But some organisations make similar provisions for male employees in their internal policies to uphold equality and fairness.

Is an employer liable if the harasser is not an employee but a client or vendor?

Yes, the Act says that it’s the employer’s duty to protect the employees from being harassed by a third party. The Internal Committee can still inquire into cases like this; they can recommend suitable action against the offender, sometimes by restricting their access to the premises.

What are the consequences of not forming an internal committee?

Under section 4 of the Act, if an organisation fails to form an internal committee, it can cause them a penalty up to ₹50,000. And under section 26 of the POSH Act, a repeated failure can lead to cancellation of the business licence and registration

References

Eligibility and Syllabus: Supreme Court Law Clerkship Exam

By

Neeli Shah

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November 26, 2025

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Table of Contents

This article is written to help aspiring law clerks understand the complete process of applying for and succeeding in the Supreme Court Law Clerkship examination. The article is written by Neeli Neelay Shah, Senior Legal Content Writer at LawSikho.

The Supreme Court Law Clerkship examination is one of the most prestigious opportunities available to fresh law graduates in India. Every year, approximately 90 Law Clerk-cum-Research Associates are recruited through a competitive examination to work directly with sitting judges of the Supreme Court of India. This one-year contractual assignment provides unparalleled exposure to India’s highest judicial institution.

For law students and recent graduates aspiring to work at the apex court, understanding the examination process, eligibility requirements, and syllabus is essential. This comprehensive guide covers everything you need to know about the Supreme Court Law Clerk examination, from application to selection.

What is the Supreme Court Law Clerkship Position?

The Supreme Court Law Clerk/Law Clerk-cum-Research Associate is a professional position where you work directly in a Supreme Court judge’s chamber. Unlike short-term internships that last a few weeks, this is a full-time engagement for one year where you become an integral part of the judge’s work.

Primary Responsibilities

As a Law Clerk, your main tasks include:

Researching case law, statutes, and legal principles relevant to cases before the court
Preparing briefs and summaries of facts, issues, and arguments in pending cases
Drafting portions of judgments and notes on complex legal questions
Preparing headnotes of judgments authored by the judges
Maintaining the judge’s library by updating legal reference materials
Attending court proceedings to record necessary information
Participating in conferences between judges and counsel

Working as a Supreme Court Law Clerk provides insights into judicial reasoning that no classroom can offer. The experience gives you access to the thought process behind landmark decisions, exposure to constitutional and appellate practice at the highest level, and professional connections that can shape your entire legal career. Many former clerks have gone on to successful careers in litigation, judiciary, academia, and public service.

Difference Between SC Law Clerkship and Internship

Let us now see how this is different from a Supreme Court internship.

Long-term Clerkship (Law Clerk Position):

Duration: 1 year (can be extended to 2 years if both judge and candidate agree)
Paid position: ₹80,000 per month
Full-time professional engagement
Requires law degree completion

Short-term Clerkship (Internship):

Duration: 4-6 weeks during academic breaks
Usually unpaid
For law students during their course
Application through university to Supreme Court Registrar

Law students can apply for short-term clerkship directly under the name of their university to the Registrar of the Supreme Court. Applications should be submitted 3-4 months prior to the intended joining date.

Eligibility Criteria for Supreme Court Law Clerkship Exam

Educational Qualification

You must have a Bachelor’s Degree in Law from any school, college, university, or institution established by law in India and recognized by the Bar Council of India for enrollment as an Advocate. This includes:

3-year LLB program after graduation in any stream
5-year integrated law degree programs (BA LLB, BBA LLB, B.Com LLB, etc.)

Can final year students apply?

Yes, students in their final year can apply. If you’re in the fifth year of a 5-year integrated course or the third year of a 3-year LLB course, you’re eligible to apply. However, you must furnish proof of acquiring your law qualification before taking up the assignment.

Age Limit

Candidates must be at least 20 years old and not more than 32 years as of the last date for submission of applications. This age window accommodates both recent graduates and those who pursued law as a second career.

How many times can you attempt the exam?

There is no restriction on the number of attempts. You can apply as many times as you wish, provided you continue to meet the eligibility criteria, particularly the age limit of 32 years.

Other Requirements

Citizenship: Only Indian citizens are eligible. There is no domicile restriction within India.

Skills Required: Candidates must demonstrate proficiency in:

Legal research and analytical skills
Legal writing abilities
Computer knowledge including retrieval of information from legal databases such as e-SCR, Manupatra, SCC Online, LexisNexis, and Westlaw

Disqualifications

Here is what makes you ineligible for the position of SC Law Clerk:

Candidates enrolled as practicing advocates are not eligible
Candidates convicted of any criminal offence cannot apply
Those with pending criminal proceedings are also ineligible

Supreme Court Law Clerkship Exam Pattern

The selection process consists of three phases designed to evaluate your legal knowledge, analytical abilities, writing skills, and overall suitability for the position.

Part I: Multiple Choice Questions (100 Marks)

Format: 100 Multiple Choice Questions testing understanding of law, comprehension abilities, and analytical aptitude

Duration: 2.5 hours (150 minutes)

Marking Scheme:

Each correct answer: 1 mark
Each wrong answer: -0.25 marks (negative marking)
Total marks: 100

Minimum Qualifying Cutoff: 40% (40 marks)

Important Points About Negative Marking

The negative marking system means four wrong answers cancel out one correct answer. This requires a strategic approach:

Don’t attempt questions randomly
If you can eliminate at least two options, attempting the question is generally favorable
If you’re genuinely guessing among three or four options, the expected value is negative

Candidates who fail to meet the 40% cutoff are eliminated, and their Part II answer sheets are not evaluated.

Part II: Subjective Written Examination (300 Marks)

Duration: 3.5 hours (210 minutes), including 30-minute reading period

Minimum Qualifying Cutoff: 50% (150 marks)

Part II carries three times the weightage of Part I and tests your legal writing, analytical reasoning, and research capabilities through three questions:

Question 1: Brief Preparation (100 Marks, 750 Words)

Prepare a concise summary of a case file (Special Leave Petition, Appeal, or Writ Petition) covering:

Key facts of the case
Legal issues requiring determination
Ratio decidendi of the lower court’s decision
Grounds on which the appeal has been filed

The 750-word limit is strict, requiring you to identify the most critical facts and core legal questions while avoiding unnecessary procedural history.

Question 2: Research Memo (75 Marks, 500-750 Words)

Analyze a factual dispute using relevant statutes and precedents provided to prepare a reasoned legal memorandum. This tests your ability to apply legal sources to factual scenarios and demonstrate legal reasoning by connecting abstract principles to concrete situations.

Question 3: Analytical Essay (75 Marks, 350-500 Words)

Write one essay from five topic choices on legal issues such as constitutional interpretation, law reform debates, judicial philosophy, or contemporary policy questions. Choose a topic where you can construct a strong argument supported by relevant examples and logical reasoning.

Part III: Interview (100 Marks)

Candidates who qualify both written parts are ranked on combined marks. Approximately 270 candidates (three times the number of vacancies) with the highest scores are called for an interview.

What the Interview Assesses:

Legal acumen and depth of understanding
Ability to discuss complex legal questions intelligently
Awareness of current judicial developments
Professional demeanor and maturity
Genuine interest in judicial work

Common Interview Questions:

Constitutional law concepts (federalism, separation of powers, fundamental rights)
Recent landmark Supreme Court judgments and their significance
Your law school experiences, internships, and research projects
Why you want to pursue this clerkship
How you would approach researching an unfamiliar legal issue

Be honest about areas you’re still developing rather than bluffing on topics you don’t know well.

Syllabus of Supreme Court Law Clerkship Exam

The Supreme Court Law Clerkship examination tests candidates across multiple dimensions of legal knowledge, analytical ability, and professional skills. Understanding the complete syllabus is essential for strategic preparation, as it helps you allocate study time effectively and identify high-priority topics that appear frequently in the exam.

Law Subjects

Constitutional Law

Constitutional law forms the backbone of Supreme Court practice and consistently carries the highest weightage in Part I of the examination. The syllabus begins with the Preamble and its significance in constitutional interpretation, which sets the foundation for understanding India’s constitutional philosophy. You must have thorough knowledge of Fundamental Rights under Part III, with particular emphasis on Article 21 (Right to Life and Personal Liberty), which has been expansively interpreted by the Supreme Court to include numerous implied rights like privacy, livelihood, and speedy trial.

The Directive Principles of State Policy under Part IV represent the state’s policy objectives and often appear in questions testing the relationship between Fundamental Rights and Directive Principles. Understanding the judiciary provisions (Articles 124-147) is crucial, covering the appointment, qualifications, powers, and removal of Supreme Court and High Court judges. You should be well-versed in the Court’s original, appellate, and advisory jurisdiction, as these form the basis of how cases reach the Supreme Court.

Writ jurisdiction under Article 32 is another high-frequency topic, requiring you to know the five types of writs (habeas corpus, mandamus, prohibition, certiorari, and quo warranto) and their specific applications. The syllabus also covers parliamentary procedures including legislative processes, sessions, committees, and privileges. The constitutional amendment process under Article 368 and the landmark basic structure doctrine established in Kesavananda Bharati v. State of Kerala (1973 Supp SCR 1) are fundamental concepts that appear regularly.

Finally, the federal structure and center-state relations test your understanding of the distribution of legislative and executive powers between the Union and States, while emergency provisions under Part XVIII cover national emergency, state emergency, and financial emergency scenarios.

Civil Law

Civil law comprises multiple statutes that govern private disputes and civil procedure. The Indian Contract Act, 1872 is tested extensively, starting with the essentials of valid contracts including offer, acceptance, consideration, capacity to contract, and free consent. You must understand which agreements are void and voidable, the distinction being crucial for solving scenario-based questions. The Act’s provisions on performance and discharge of contracts explain how contractual obligations are fulfilled or terminated, while questions on breach and remedies test your knowledge of damages, specific performance, and injunctions available to aggrieved parties.

The Civil Procedure Code, 1908 governs the procedural aspects of civil litigation. Key topics include court jurisdiction (territorial, pecuniary, and subject-matter), which determines which court can hear a particular case. You should know the requirements for the institution of suits including the content of plaints and written statements. Understanding interim orders like injunctions and attachment is important, as is knowledge of decree execution processes. The CPC’s provisions on appeals and revisions explain how decisions can be challenged, while the doctrine of res judicata prevents relitigation of decided matters.

The Law of Torts section requires understanding of general principles of tortious liability and specific torts including negligence, defamation, nuisance, and trespass. You should know the defenses available to defendants and the principles of damages in tort law. The Specific Relief Act, 1963 covers remedies including recovery of possession, specific performance of contracts, injunctions (temporary and permanent), and declaratory decrees.

Criminal Law

Criminal law forms a substantial portion of the syllabus across three major statutes. The Indian Penal Code,1860/Bharatiya Nyaya Sanhita 2023 begins with general exceptions that excuse criminal liability under certain circumstances. You must thoroughly understand offences against the human body, particularly the distinction between murder and culpable homicide, as well as hurt and kidnapping. Property offences including theft, extortion, robbery, and cheating appear frequently, as do offences against public tranquility.

The Criminal Procedure Code, 1973/Bharatiya Nagarik Suraksha Sanhita 2023 governs criminal trial procedures. Critical topics include arrest procedures (when arrest is permissible, rights of arrested persons), bail provisions distinguishing between bailable and non-bailable offenses, and the various stages of criminal trial from charge to judgment. Understanding appellate and revisional provisions is essential, as is knowledge of the hierarchy of criminal courts and their powers.

The Indian Evidence Act, 1872/Bharatiya Sakshya Adhiniyam 2023 tests your understanding of relevancy of facts (which facts can be proven in court), the distinction between documentary and oral evidence, principles of burden of proof and presumptions, and the process of examination of witnesses including examination-in-chief, cross-examination, and re-examination.

English Language and Comprehension

English language skills are tested through three main components:

Grammar questions assess your command over fundamental rules including subject-verb agreement, tense consistency, pronoun-antecedent agreement, correct use of prepositions, active and passive voice, direct and indirect speech, parts of speech and their usage, and commonly confused words. These questions test whether you can identify and correct grammatical errors in legal and general writing.
Reading Comprehension forms a significant component, requiring you to demonstrate understanding of main ideas and supporting details in complex passages, draw inferences beyond what’s explicitly stated, understand vocabulary in context including legal terminology and Latin maxims, and comprehend legal passages that may be drawn from judgments, articles, or legal commentary. The comprehension section often includes passages with legal or constitutional themes, testing both language skills and legal awareness simultaneously.
Sentence Construction questions test practical writing skills through error spotting (identifying grammatical and usage errors), rearranging jumbled sentences into logical order, filling blanks with appropriate words based on context, and selecting best sentence revisions from multiple options. These questions assess your ability to construct clear, grammatically correct sentences; a skill essential for legal writing.

The exam also covers the topics like:

General Knowledge and Current Affairs

This section has three distinct components.

Recent legal developments is the most critical, covering significant Supreme Court and High Court judgments from the past year, legislative changes and constitutional amendments that affect the legal landscape, new legislation enacted by Parliament, and policy developments affecting the legal landscape. Stay updated through legal news portals like LiveLaw, Bar and Bench, and SCC Online Blog, as well as the Supreme Court’s official website.
Current Affairs extends beyond legal developments to include national events such as policy announcements, international relations, and economic indicators; international developments including geopolitical events, UN activities, and major elections; etc.
Static GK covers foundational knowledge including Indian history, geography covering Indian states, natural resources, and important geographical features and culture, and relevant aspects of world history particularly events that shaped the modern legal and political order.

Computer Knowledge

Computer knowledge for law clerks focuses on practical legal research and office productivity tools. Legal Research Databases form the core of this section. You should be familiar with e-SCR (Electronic Supreme Court Reports), Manupatra and SCC Online are widely used Indian legal databases with comprehensive coverage of Supreme Court, High Court, and tribunal decisions. LexisNexis and Westlaw are international databases with strong Indian law coverage. Understanding Boolean searches using AND, OR, and NOT operators is essential for efficient legal research, allowing you to narrow or expand search results effectively.

MS Office Tools are tested for practical workplace competence. In Microsoft Word, you should know formatting features including styles and heading hierarchy, how to insert footnotes and endnotes for legal citations, creating tables of contents automatically, and using cross-references for internal document navigation. Basic familiarity with MS PowerPoint for presentations and Outlook for professional email management is also expected, as law clerks often prepare presentation materials and communicate formally with various stakeholders.

Preparation Tips for Supreme Court Law Clerk Exam

Sharing below some tried and tested tips to crack the SC Law Clerk Exam:

General Preparation

Read legal news daily through LiveLaw, Bar and Bench, or SCC Blog
Familiarize yourself with legal research databases
Improve English comprehension and grammar
Stay updated on current affairs with legal implications
Join test series specifically designed for this exam

For Part I (MCQs)

Focus on bare acts: Constitution, IPC/BNS, CrPC/BNSS, Evidence Act/BSA, Contract Act, CPC
Practice previous years’ question papers to understand exam difficulty
Take timed mock tests to improve speed and accuracy
Build strong conceptual understanding rather than rote memorization
Stay updated on recent Supreme Court judgments

For Part II (Subjective)

Practice legal writing regularly with word limits
Read Supreme Court judgments to understand judicial writing style
Practice case briefing: identify facts, issues, reasoning, and ratio
Develop ability to analyse legal problems methodically
Practice writing essays on contemporary legal issues

Important Dates for Supreme Court Law Clerkship Exam

While exact dates vary each year, here’s the typical timeline based on previous recruitment cycles:

Sr. No.	Expected Timeline	Events
	January	Notification Release
	Mid-january	Online APplication opens
	First/second week of February	Application dead line closes
	1-2 weeks before exam	Admit card download
	March (typically first/second Sunday)	Written Exam (Part I and II)
	Day after exam	Model Answer Key is released
	Objection window	1-2 days post release of answer key
	Final answer key	2-3 weeks post exam
	Written exam results	April
	Interview schedule	April/May
	Final Merit List	May
	Joining Date	May/June

Key Points:

Part I and Part II are conducted on the same day in two sessions with a one-hour break
The exam is held across 20+ cities including Delhi, Mumbai, Kolkata, Chennai, and state capitals
Admit cards are released only on the official website
The answer key objection window is very short (24-48 hours)
Interview calls go to approximately 270 candidates based on combined written scores

Pro Tip: Follow the Supreme Court’s official website and legal news portals like LiveLaw and Bar & Bench for real-time updates on date announcements.

How to Apply for Supreme Court Law Clerkship

Step-by-Step Application Process

The Supreme Court accepts applications exclusively through its online portal. No postal or offline applications are accepted.

Step 1: Visit the Official Portal

Go to the Supreme Court of India’s official website (sci.gov.in) and navigate to the “Recruitment” section. Click on the Law Clerk-cum-Research Associate application link when the notification is active.

Step 2: Register Your Account

Create an account using a valid email ID and mobile number. You’ll receive an OTP for verification. Save your login credentials for future use.

Step 3: Fill the Application Form

Enter personal details (name as per degree certificate, date of birth, address), educational qualifications (law school, year of passing, percentage/CGPA), and other required information. Double-check spelling and dates.

Step 4: Upload Documents

You need to keep the following documents handy:

Recent passport-size photograph (white background, 20-50 KB, JPG format)
Signature (on white paper, black ink, 10-20 KB, JPG format)
ID Proof (Aadhaar/PAN/Passport, PDF, under 500 KB)
Degree Certificate or latest marksheet with bonafide certificate for final year students
Category Certificate if applicable (SC/ST/OBC/EWS/PwD)

Step 5: Pay Application Fee

The application fee is ₹500 (plus bank charges) payable online through UCO Bank Payment Gateway. Save the payment receipt.

Step 6: Submit and Print Confirmation

Review your application before final submission. Once submitted, changes cannot be made. Download and print the confirmation page with your application number.

Career Opportunities After Supreme Court Clerkship

Litigation Practice with Supreme Court Background

Former Supreme Court Law Clerks enter litigation practice with significant advantages. They understand how the apex court functions from inside, know how judges analyze cases and what arguments they find persuasive, and have developed research and writing skills at the highest level. This makes them highly valued by senior advocates and law firms.

The professional network you build during clerkship is invaluable. You’ll interact with Supreme Court advocates, meet other clerks, and most importantly, work directly with a Supreme Court Justice. These connections can open doors throughout your career.

Advantage in Judiciary Exams

If you aspire to become a judge, there’s no better preparation than watching how judgments are crafted at the Supreme Court. You’ll understand the judicial thought process, see how constitutional questions are analyzed, and develop legal reasoning skills that judiciary exams test.

Former Law Clerks have excellent success rates in judicial services examinations because the clerkship naturally builds the substantive knowledge, analytical abilities, and legal writing skills these exams assess.

Advantage in Advocate-on-Record Examination

The AOR examination tests knowledge of Supreme Court practice and procedure – exactly what you learn daily as a Law Clerk. You’ll understand how cases move through the system, procedural requirements at each stage, and how the Registry functions.

While you’ll still need four years of practice experience for AOR eligibility, your clerkship foundation gives you a significant head start.

Higher Studies and Research Opportunities

Pursuing LLM

Supreme Court clerkship is an exceptional credential for LLM applications, both in India and abroad. International law schools recognize the prestige and rigor of this position. Many former clerks pursue LLMs at institutions like Harvard, Oxford, Cambridge, and Columbia.

Legal Academia and Teaching

If you’re interested in legal academia, clerkship provides deep engagement with doctrinal legal questions that academic work requires. Former clerks often write about their experiences or legal questions they encountered, publishing in law reviews. The combination of practical judicial experience and analytical training makes former clerks attractive candidates for law school faculty positions.

Difference Between SC Law Clerkship and Internship

Long-term Clerkship (Law Clerk Position):

Duration: 1 year (can be extended to 2 years if both judge and candidate agree)
Paid position: ₹80,000 per month
Full-time professional engagement
Requires law degree completion

Short-term Clerkship (Internship):

Duration: 4-6 weeks during academic breaks
Usually unpaid
For law students during their course
Application through university to Supreme Court Registrar

Law students can apply for short-term clerkship directly under the name of their university to the Registrar of the Supreme Court. Applications should be submitted 3-4 months prior to the intended joining date.

Conclusion

The Supreme Court Law Clerkship examination offers fresh law graduates an unparalleled opportunity to gain firsthand exposure to India’s highest judicial institution. The position provides invaluable experience that can shape your entire legal career, whether you pursue litigation, judiciary, academia, or any other legal field.

Success in this examination requires thorough preparation across constitutional, civil, and criminal law, strong legal writing and analytical skills, and genuine enthusiasm for judicial work. Start your preparation early, practice extensively, and approach this opportunity with the dedication it deserves. The experience of working in a Supreme Court Justice’s chamber is transformative and can open doors throughout your legal career.

If you’re passionate about understanding how justice is delivered at the highest level and want to contribute to India’s judicial system while building a strong foundation for your legal career, the Supreme Court Law Clerkship is the perfect opportunity for you.

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Supreme Court Law Clerkship Exam: Preparation Guide

By

Urvi Shah

-

November 25, 2025

0

Complete guide to Supreme Court Law Clerkship Exam: eligibility, exam pattern, subject-wise strategies & study plan to crack this prestigious position. This article is written by Urvi Shah, Senior Associate at LawSikho.

Imagine spending a year working directly with Supreme Court judges, contributing to judgments that shape India’s legal landscape. That’s the reality for the 90 Law Clerk cum Research Associates selected annually through one of the country’s toughest legal exams.

While most law graduates are just starting out at firms or district courts, these 90 individuals get a career advantage that’s hard to beat, learning from India’s finest legal minds and building credentials that instantly set them apart.

The challenge? Thousands compete for that spot each year.

Cracking this exam isn’t just about knowing the law. It demands strategic preparation, sharp legal writing, and a clear understanding of what the selection committee is looking for.

This guide gives you exactly that, a complete roadmap to help you prepare effectively and maximize your chances of becoming a Supreme Court Law Clerk.

Table of Contents

Eligibility Criteria for Supreme Court Law Clerkship Exam

Educational Qualification Requirements

You must possess a Bachelor’s Degree in Law from any institution recognised by the Bar Council of India for enrolment as an Advocate. This includes both 3 year LLB programs and 5 year integrated courses like BA LLB, BBA LLB, or B.Com LLB offered by National Law Universities and other recognised law schools across India.

Final year students can also apply for the position. If you’re in the fifth year of a 5 year integrated course or third year of a 3 year LLB program, you’re eligible to apply provided you can furnish proof of acquiring the law qualification before taking up the assignment. This provision allows you to begin preparation well before graduation.

The qualification requirements for the Supreme Court Law Clerk position are straightforward and must be carefully verified before applying.

Age Limit and Other Requirements

Candidates must be at least 20 years old and not more than 32 years as on the final date for registration. There’s no restriction on the number of attempts, meaning you can reapply in subsequent recruitment cycles until reaching the maximum age limit. Only Indian citizens can apply, with no domicile restrictions within India.

You should possess research and analytical skills, writing abilities, and knowledge of computers including proficiency in retrieving information from legal databases such as e-SCR, Manupatra, SCC Online, LexisNexis, and Westlaw.

An important disqualification to note is that candidates involved in any criminal case, whether convicted or with criminal trial pending, are not eligible for this position.

Understanding the Exam Pattern and Selection Process

Part I: Multiple Choice Questions (100 Marks)

The first part consists of 100 MCQs to be completed within 2.5 hours, covering reading comprehension, analytical and legal aptitude and recent developments in law.

Each correct answer earns you 1 mark, but there’s a deduction of 0.25 marks for every incorrect response. This negative marking system means random guessing can hurt your score significantly, so you need a strategy that balances attempting maximum questions while avoiding wild guesses.

To qualify for Part II evaluation, you must secure at least 40% marks (40 out of 100). Candidates who fail to meet this threshold are automatically rejected, and their Part II answer sheets are not assessed. This makes Part I preparation crucial as it serves as the gateway to having your subjective answers evaluated at all.

Part II: Subjective Written Examination (300 Marks)

Part II must be completed within 3.5 hours (including 30 minutes of reading time) and consists of three question types:

The Brief Preparation question (150 marks) requires you to prepare a 750-word concise summary of a provided case file.
The Research Memo (75 marks) presents a brief factual dispute with relevant statutes and precedents, requiring a 500-750 word reasoned analysis.
The Analytical Question (75 marks) tests your ability to write a 350-500 word response on contemporary legal topics.

To qualify in Part II, you need minimum 50% marks (150 out of 300). This higher threshold reflects the importance of strong writing and analytical skills for the law clerk role.

The final results are calculated based on combined marks from Part I and Part II, with your total score out of 400 marks determining your position in the merit ranking.

Here’s a sample guide of questions and answers for Supreme Court Law Clerkship Exam.

You can refer to an article on Supreme Court Law Clerkship: Syllabus and Eligibility, for better understanding of the syllabus and eligibility criteria.

Creating an Effective Study Schedule for Supreme Court Law Clerkship Exam

Month Wise Preparation Breakdown

For candidates with 2-3 months of preparation time, strategic allocation is essential.

January (Weeks 1-4) should focus on syllabus completion: Week 1 for Constitutional Law and Contract Act, Week 2 for Criminal Law, Week 3 for Civil Law, and Week 4 for English comprehension and General Studies. Focus on understanding concepts rather than memorization.

February (Weeks 5-8) should emphasize application and practice. Weeks 5-6 are for solving at least 3-4 complete previous year papers and analyzing performance. Weeks 7-8 should focus on Part II writing practice with at least 2-3 case synopsis, research memos, and analytical questions each.

Early March (Weeks 9-10) is for consolidation through 2-3 full-length mock tests and focused revision on high-weightage topics.

Balancing Part I and Part II Preparation

In early weeks, allocate 70% of time to Part I subjects and 30% to Part II skills. As the exam approaches, shift to 50-50 or even 40-60 favoring Part II since writing skills need more practice time to develop. Don’t ignore Part II until finishing Part I preparation, as these skills develop gradually and cannot be rushed in the final week.

Daily study hours should be 4-5 hours during initial phases for working professionals or final-year students, increasing to 6-8 hours in the final month. Use morning hours for subjects requiring intense concentration and afternoon or evening for practice and lighter reading. Ensure adequate sleep, especially in final weeks, as it consolidates learning and improves exam performance.

Subject-Wise Preparation Strategy for Part I

Constitutional Law and Criminal Law Focus Areas

Constitutional Law consistently remains a high weightage subject with 15-20 questions per examination. Focus your preparation on Fundamental Rights under Articles 14, 19, 21, and 32, Directive Principles, Supreme Court jurisdiction, Parliamentary procedures, and Emergency provisions. Landmark judgments like Kesavananda Bharati [SC 1973], Maneka Gandhi [SC 1978] and K.S. Puttaswamy [SC 2017] are essential reading for this section.

Criminal Law (IPC and CrPC combined) typically accounts for 20-30 questions. Under IPC, emphasize General Exceptions, offenses against human body and property, and the distinction between murder and culpable homicide. For CrPC, understand classification of offenses, arrest provisions, bail provisions distinguishing between bailable and non-bailable offenses, and trial procedures including the difference between summons cases and warrant cases.

Civil Law, Evidence Act, and Contract Act Preparation

Civil Law contributes approximately 20 questions covering CPC and Evidence Act. For CPC, focus on jurisdiction provisions, suit structure, Orders VII, VIII, XIV, and XXXIX, and appeals under Sections 96, 100, and 115. For Evidence Act, concentrate on relevancy provisions (Sections 5-55), burden of proof, presumptions, and examination of witnesses.

Contract Act was introduced in 2023 with approximately 10-12 questions. Focus on essentials of a valid contract under Sections 10-30, free consent and its vitiating factors, offer and acceptance rules, consideration and its exceptions, and breach of contract remedies. The Sales of Goods Act provisions on transfer of property and conditions versus warranties are also helpful for this section.

Mastering Part II: Writing Strategies That Work

Case Synopsis: Structure and Common Mistakes

A comprehensive case synopsis must cover five essential elements within the 750-word limit. Start with a brief introduction (50-75 words) identifying the nature of the case, parties involved, and the court from which the appeal arises.

The key facts section (200-250 words) should present material facts chronologically, focusing only on facts relevant to legal issues. Legal issues (100-150 words), ratio decidendi (150-200 words), and grounds for appeal (100-150 words) complete the structure.

The most common mistake is including every fact from the case file rather than selecting material facts relevant to legal issues. Candidates often confuse the ratio decidendi with obiter dicta, including passing observations rather than binding principles. Using legal jargon incorrectly, exceeding word limits, and presenting unstructured walls of text are also penalized heavily by evaluators.

Research Memo and Analytical Question Techniques

The research memo follows a structured format beginning with a Question Presented section (50-75 words), Brief Answer (50-75 words), Analysis (300-450 words), and Conclusion (50-75 words).

When analyzing statutes and precedents, focus on cases factually similar to your dispute rather than cases merely discussing the same legal principle in different contexts. Use the IRAC (Issue, Rule, Application, Conclusion) framework to structure each analytical point.

For the analytical question, state your thesis directly in the opening paragraph rather than beginning with vague generalities. Each body paragraph should develop one main argument supporting your thesis with specific examples from Indian legal developments, comparative constitutional law, or current events.

Practice writing one answer per week on potential topics under timed conditions to develop writing skills under pressure.

Key Resources and Books for Preparation

Recommended Textbooks for Each Subject

For Constitutional Law, V.N. Shukla’s Constitution of India provides comprehensive coverage suitable for this examination, while D.D. Basu’s Introduction to the Constitution of India is another excellent choice. For Criminal Law, Ratanlal and Dhirajlal’s Indian Penal Code and The Code of Criminal Procedure are standard texts. C.K. Takwani’s Civil Procedure Code and Batuk Lal’s Law of Evidence cover civil law requirements effectively.

For Contract Law, Avtar Singh’s Law of Contract is accessible for examination purposes. For General Studies and General Knowledge, Lucent’s General Knowledge and Arihant’s General Studies are helpful. Examination-specific guides like Singhal’s Guide to Supreme Court Law Clerk Examination with solved papers help understand question patterns.

Online Resources and Daily Reading Habits

Legal databases are essential for accessing judgments. SCC Online and Manupatra offer comprehensive judgment search functionality, while the Supreme Court’s e-SCR is available free on the official website.

For legal news, follow Bar and Bench, Live Law, and Legally India daily for Supreme Court updates and legislative developments.

Make it a habit to spend at least 30 minutes daily on legal news reading, increasing this as the exam approaches.

Create a running document summarizing important judgments in 3-4 lines each, noting case name, key legal issue, and ratio decidendi.

Subscribe to case law digests from SCC Online or Manupatra to receive weekly summaries of important judgments relevant for the Latest Developments section.

For preparation resources, LawSikho’s Supreme Court Law Clerk Booster Course offers comprehensive recorded lectures, MCQ banks, and interview preparation support.

You can even watch YouTube videos which can supplement your learning with video explanations of complex topics

Conclusion

Preparing for the Supreme Court Law Clerkship examination requires a strategic, disciplined approach balancing knowledge acquisition with skill development. Focus on building genuine legal understanding rather than superficial memorization, as the examination tests your ability to apply law to facts and articulate legal reasoning clearly.

The skills you develop during preparation will serve you throughout your legal career regardless of which path you choose after the clerkship. For getting more clarity and tips you can read this article. With the right preparation and mindset, you can secure your position among the approximately 90 candidates selected annually for this prestigious role. Stay focused, practice consistently, and regularly check the official Supreme Court website at sci.gov.in for the latest notification details and updates.

1 month Supreme Court Clerk exam prep,
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Supreme Court’s stand on misuse of ‘cruelty’ under Section 498A – rising horizon for men’s rights

By

Anshi Mudgal

-

November 5, 2025

0

cruelty under Section 498A — Image Source - https://shorturl.at/ZCD31

This blog is written by Adv. Varsha Singh. She is a Supreme Court and High Court lawyer with over a decade of experience in litigation, arbitration, and corporate advisory, offering strategic and result-driven legal solutions across diverse practice areas.

Table of Contents

Introduction

Walking through a fine line has always been a struggle for domestic law, protecting those who are actually vulnerable and preventing the law itself from being misused as a weapon. This balance is nowhere delicate than in matrimonial disputes. Allegations of cruelty or harassment can change someone’s life, not just of the one who complained but also for the one against whom these allegations are made, including their family.

Let’s be honest; the law is implemented to provide justice. But not every complaint is honest and just. The judiciary has begun to acknowledge that. The concern here is that some complaints may be exaggerated or retaliatory. This places an unnecessary burden on the accused.

Allegations of all shapes and sizes must come with a statutory warning. In this case of Rajesh Chaddha v. State of Uttar Pradesh (2025), the Apex Court stressed this very aspect. It required that allegations of cruelty need to be specific, substantiated and contextual.

In this landmark moment on Men’s Rights in domestic cases unfolds a very important question: who will justice stand with?

Rethinking Section 498A: protection or punishment?

Section 498A of the Indian Penal Code was legislated in 1983. It was designed to protect the married woman from cruelty, harassment and dowry abuse. At the time, this law was considered progressive. It offered criminal remedies to women within their own homes. However, over the years, this section has been misused extensively. The shield has turned into a weapon by involving the husband as well as his relatives in prolonged litigation.

A case study cited by the Times of India (2025) found serious gaps between accusations and proof. Between 2017 and 2022, only 1% of 498A cases resulted in convictions.

In 2014, the Supreme Court of India warned against ‘automatic arrests.’ The SC observed in Arnesh Kumar v. State of Bihar (2014) that section 498A became a powerful weapon for resentful partners. Citing Section 41 of the CrPC, police were directed to follow due process. Arrests were only to be made with reasonable satisfaction and verification of evidence.

The same concept has been allowed to seep through in Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS). Section 35 of BNSS mirrors the old Section 41 of CrPC. It reinforces judicial caution against arbitrary detentions in domestic cruelty cases. Thus, assuring us safeguards and protection.

This is not a failure of law but how it is implemented. The law has always been applied with bias, although it was crafted with empathy. What is supposed to protect us is sometimes used to punish us. Thus, showing how emotion can overtake fairness.

Interpreting the court’s reasoning on Rajesh Chaddha Judgment (2025)

The SC reignited the debate on the interpretation of allegations of cruelty in matrimonial disputes. The wife had filed a complaint of mental and physical harassment by her husband and his family. Upon judicial scrutiny, the allegations were found to be baseless and uncorroborated by any evidence.

The court held that ‘cruelty’ cannot be interpreted in isolation. The prosecution’s case lacked specificity, dates or circumstances to prove cruelty. The wife relied on general accusations and emotional narratives. The court held it was insufficient to sustain a conviction.

The SC observed, “The term ‘cruelty’ is subject to rather cruel misuse by the parties, and cannot be established simpliciter without specific instances, to say the least. The tendency of roping these sections, without mentioning any specific dates, time or incident, weakens the case of the prosecution, and casts serious suspicion on the viability of the version of a complainant.”

The precedent of Preeti Gupta v. State of Jharkhand (2010) was followed in this case. It was noted that a serious re-examination of Section 498A was necessary. The said Section was being misused time and again.

Rajesh Chaddha v. State of Uttar Pradesh goes further. It enunciates the emerging doctrine of ‘Context Cruelty’ emphasised by various legal commentators. The court must discriminate between genuine domestic cruelty cases from marital discord.

With this new interpretation, a positive path was paved by the Apex Court. It marked a move toward greater evidentiary examination and judicial stability. Thus, reinforces fairness and justice to the victim.

What stands out in this judgment isn’t just the acquittal but the insistence of the Court on evidence-based reasoning. How emotional narratives should be dealt with is redefined in this judgment. This is a subtle shift, but it may redefine how, in matrimonial cases, emotions cannot substitute for proof.

“Contextual cruelty”: an emerging doctrine

Rajesh Chaddha’s acquittal in this case leads to judicial evolution. Evidence and context were highlights in this judgment. Thus, leading to the emergence of the doctrine of ‘Contextual Clarity’. The courts have forever relied on the complainant’s testimony. This new approach has emerged with the intent to protect. Although this may lead to a greater presumption of guilt than presumption of innocence.

Contextual Clarity doctrine helps the judge to see beyond the narrative. The totality of circumstances, including the nature of the relationship, allegation timing, evidence of provocation and retaliatory motives, needs to be judged too. False complaints harm the accused as well as dilute credibility. Now, the court has redefined how matrimonial wrangles are to be decided.

K. Subba Rao v. State of Telangana (2018) and Social Action Forum for Manav Adhikar v. Union of India (2018) reflect the same predicament. The court emphasises the need for procedural fairness in handling domestic disputes assertions.

In the Social Action Forum, the court directed the Family Welfare Committees to examine complaints before arrests. This may help prevent misuse of the section. Therefore, the doctrine performs a dual function:

To preserve the integrity of the law designed to protect women. It will help ensure that they are not trivialised through false use.
Reinforcement of due process; protection of men and their families; ensuring laws are not used as a tool of vengeance.

What should be the new approach for legal practitioners?

The court has developed the usage of Section 498A. In the complaint of such cases, it should now focus on exhibiting

i. discrepancies,

ii. lack of specifics, or

iii. contextual dubieties in the complaint.

These complaints must be supported by tangible evidence. Therefore, Contextual Clarity doesn’t weaken the protection granted to women. Rather, it equalises the use and misuse of the section by granting protection to both men and women.

The judicial balance between the truth and the false

The constant efforts of the judiciary have been proven by the ruling of this case. The court is successful in reinforcing the balance between genuine victims and false complaints. The court reinstated the legislative intent behind anti-cruelty laws. Yet, the implementations of these provisions often risk overreach.

The Apex Court in Arnesh Kumar v. State of Bihar (2014) warned against the routine arrest. Notably, it held that no arrest be made without reasonable satisfaction about the genuineness of the allegations. Liberty must not be sacrificed at the bench of accusation. The court gave directions to prevent the superfluous arrest of men and their family members.

The judgment given in Rajesh Chaddha’s case was that emotions should not form the foundation of criminal liability. Vague allegations by the prosecution and discreditation of genuine claims of abuse were acknowledged. The courts should use their inherent powers (Section 482 BNSS, formerly Section 438 CrPC) to quash malicious proceedings. This, in turn, will help to protect the rights of the accused in trials based on false accusations.

A Similar judgment was pronounced in State of Madhya Pradesh v. Jogendra Singh (2022). Held, false accusations do not weaken the need to protect real victims of domestic cruelty.

The challenge here is how to discriminate between the two? Now that’s the task of the judiciary, by involving evidentiary discipline.

What is the takeaway here for legal practitioners?

Fairness, precision and respect for due process must be practised by the parties to the case.
The defence should focus on contextual scrutiny and corroborating evidence.
The complainant’s lawyer must ensure those allegations are backed by substantial proof.

Men’s rights & legal practice

The perspective is now evolving. There is more than a clarification of procedural fairness. We can sense a jurisprudential shift toward gender-neutral accountability. Cruelty laws have always been misused and abused. Therefore, the judiciary was compelled to rethink the coexistence of protection with impartiality.

The court upheld men’s rights with this judgment. It recognised the harassment faced by men in cruelty cases. Those exaggerated claims may lead to devastating personal and professional consequences. Employment issues, mental health issues, and a lowered reputation are just a few. The Apex Court mandated strict proof of allegations, thereby restoring the balance. Men can be victims too!

Practical insights for lawyers

Precise allegations

The Defence can now confidently sustain prosecution and argue that vague allegations are insufficient. The courts can use section 482 to squash petitions for not producing any corroborative evidence.

Evidence-driven strategy

Practising lawyers should focus on gathering material evidence. For example, medical records, witness statements, and communications instead of testimonials.

Advisory role

Advice on exaggerated complaints should be provided. As it may weaken the credibility of genuine cases. Accused clients should cooperate with investigation procedures and avoid retaliatory litigation.

Encouragement of ADR

In matrimonial disputes, the judge indirectly fortifies alternative dispute resolution (ADR). This can be used as an opportunity by lawyers to promote meditation. It will help in preserving family dignity and reducing the burden.

Impact on investigation

Now, police are under great caution before registering FIRs or making arrests in cruelty cases. The defence lawyer can invoke the precedents set in the Arnesh Kumar and Rajesh Chaddha cases to challenge arbitrary actions.

Policy-wise, the judgment backs the ongoing dialogue on gender parity in India. It pleads that compassion must not turn into prejudice. Sympathy is not a knife to turn into innocent backs. India’s constantly evolving criminal jurisprudence represents a step toward procedural equivalence. A move to embolden the moral authority of laws protecting women.

Reflective viewpoint

Rajesh Chaddha’s ruling is a sign of judicial development. Our view and standpoint here must be very clear. Some may view it as anti-women. It should be seen as an anti-abuse verdict.

How can we say this?

In this case, the Court has not diluted the protection, but we can say it has purified it. Every false case undermines the case of the real victim. This ruling reminds the system to discriminate between vengeance from genuine suffering.

After all, the goal isn’t to favour men over women but to protect the truth.

Conclusion

There is a jurisprudential shift by the Supreme Court in this case. The Court has come to recognise the rights of men in domestic dispute cases. The court has insisted that the allegations be specific, contextual and backed by concrete evidence. Now there is less weightage on testimonials.

Rajesh Chaddha’s ruling shall help in safeguarding men against false and frivolous complaints. Thus, ensuring that men are not unjustly harassed while protecting genuine victims. This approach has stemmed fairness and justice and created equality.

This judgement highlights the need for corroborated evidence, thorough investigation and judicial scrutiny. This is a positive message set out for legal practitioners, policymakers and society at large. India continues to refine its domestic law system. We need a system that protects the innocent, empowers justice to victims and upholds our judiciary.

The real question to ask is: How can we implement laws to shield victims and not use the laws as weapons for vendettas?

Frequently Asked Questions (FAQs)

How shall “Contextual Cruelty” affect settlement discussions?

This new doctrine will help judges and lawyers to see allegations in full context. It may separate real issues from the exaggerated ones. Hence, settling disputes quickly and reasonably without unnecessary legal battles.

Will the Rajesh Chaddha judgment influence future legislative reforms on domestic violence laws?

Yes, it may be focusing on clarity, context, and solid evidence. The judgment sets an example for lawmakers to follow when reflecting on domestic violence or cruelty laws. Future changes may include gender-neutral rules, clear procedures and strict complaint requirements. Thereby, aiming to prevent misuse while protecting the real victims.

Will there be implications for cross-border or international domestic dispute cases involving Indian citizens?

There could be! Usually, Indian courts apply local legal principles in cases that involve other countries, like harassment, custody or maintenance. The court should focus on the contextual evidence with judicial scrutiny. Thereby influences how courts handle international cases, making sure that the decision is fair for those who also stay overseas.

References

Did GST create a lot of new jobs in tax and compliance sector?

By

Anshi Mudgal

-

October 21, 2025

0

Did GST create a lot of new jobs in tax and compliance sector? — Image Source - https://tinyurl.com/4y74mn38

Despite eight years since GST implementation, no official government statistics exist on registered GST Practitioners, even though the legal framework and registration process are well-established. However, industry data reveals approximately 1.3 million tax professionals (formal and informal) now serve India’s 15.2 million GST taxpayers, with the consulting market estimated at $7+ billion annually. The sector is dominated by 159,557 practicing Chartered Accountants alongside hundreds of thousands of unregistered consultants, growing at 8-11% annually since 2017.

This data gap contrasts sharply with comprehensive government reporting on GST revenue and taxpayer statistics. While the GST Network tracks registrations and collections meticulously, practitioner enrollment numbers remain unpublished across all government portals, reports, and statistical releases. Understanding this consulting ecosystem requires piecing together data from professional bodies like ICAI, market research firms, and industry analyses rather than relying on a single authoritative source.

Table of Contents

Official GST Practitioner data: a conspicuous absence

The research revealed a striking finding: registered GST Practitioner statistics are not publicly available from any government source, despite the existence of a formal enrollment framework under Section 48 of the CGST Act, 2017. The GST Portal maintains a searchable database of individual practitioners through its “Find a GST Practitioner” tool, but aggregate enrollment numbers are never published.

Extensive searches across the GST Portal, GST Council, NACIN (National Academy of Customs, Indirect Taxes and Narcotics), CBIC (Central Board of Indirect Taxes and Customs), Ministry of Finance, and Press Information Bureau found detailed information about the registration process, eligibility criteria, and examination requirements—but zero statistics on total enrollments, state-wise distribution, or historical growth trends. This contrasts dramatically with GST taxpayer data, which is regularly updated and published with comprehensive breakdowns.

The GST Practitioner framework requires applicants to pass a NACIN-conducted examination within two years of enrollment, with exams held twice yearly since 2018. However, neither exam candidate numbers nor pass rates are publicly disclosed. The system recognizes multiple professional qualifications as eligible, including Chartered Accountants, Company Secretaries, Cost Accountants, commerce/law graduates, and retired government officials—yet no consolidated count exists across these categories.

Possible explanations for this data gap include separate tracking by Central and State authorities, making aggregation difficult, privacy considerations around individual practitioner data, administrative separation between enrollment and post-exam certification stages, and limited public interest compared to revenue collection metrics that dominate GST reporting.

Chartered Accountants: the backbone of formal GST consulting

The Institute of Chartered Accountants of India (ICAI) provides the most concrete professional data available. As of February 2025, ICAI reports 407,629 total members, making it the world’s largest or second-largest accounting body. Of these, 159,557 hold Certificates of Practice (39.1%), representing the core of formal GST consulting capacity.

These practicing CAs operate through 98,967 registered firms: 68,125 proprietary firms (68.8%), 27,051 partnership firms/LLPs (27.3%), and 3,791 sole practitioner firms (3.8%). While ICAI does not publish specific breakdowns of members by practice area, industry analysis suggests 70-80% of practicing CAs provide tax services including GST compliance, returns, audits, and advisory work.

ICAI’s response to GST implementation has been comprehensive. The organization conducted training for over 2,000 government officers in GST programs during 2023-24 alone, delivered 160+ batches of its Certificate Course on GST since 2017, and organized 1,432 CPE (Continuing Professional Education) programs on GST in 2023-24—the largest topic category. Publications include 262+ editions of GST Updates and 57+ e-newsletter editions.

The CA profession has experienced strong growth since GST implementation: 31,946 new CAs qualified in 2024, the highest number since COVID-19, contributing to annual membership growth of 7-8%. ICAI’s ambitious target of 30 lakh (3 million) CAs by 2047 would require 130,000 new qualifications annually—four times the current rate—indicating recognition of massive future demand.

Government recognition of CAs in the GST ecosystem is formal and extensive. CAs are specifically authorized as representatives under Section 116(2) of the GST Act, 2017, eligible to conduct GST audits, and required to certify annual returns (GSTR-9C) for businesses exceeding ₹5 crore turnover. Hon’ble Vice-President of India at GloPAC 2023 specifically recognized CAs’ role in transforming GST from being perceived as complex to becoming a “Good and Simple Tax.”

Market size estimates: a $7+ billion industry serving 15 million taxpayers

Industry research and market analysis provide estimates where government data is absent. The Indian tax consulting market was valued at $6.5 billion (₹42,500 crore) in 2017, growing 9% to $7.1 billion in 2018 primarily due to GST implementation. A 2017 Consultancy in analysis projected that serving approximately 9 million companies under GST jurisdiction would require 1.3 million new tax consultants.

By 2024-25, the Big Four accounting firms alone (Deloitte, EY, PwC, KPMG) generated combined revenues of ₹38,800 crore (~$4.7 billion) in FY24, projected to exceed ₹45,000 crore (~$5.4 billion) in FY25. Their consulting services, including tax advisory, accounted for over ₹25,000 crore of this total. Individual firm performance shows remarkable growth: EY India reported ₹13,400+ crore (16-17% growth), Deloitte ₹10,000 crore (29% growth), PwC ₹9,200 crore (22% growth), and KPMG ₹5,900-6,200 crore (5.5-10% growth).

The broader India consulting market reached $13 billion in 2024 and is projected to hit $24 billion by 2031 at an 11% CAGR, according to 6Wresearch. Within this, the GST-related technology market is also expanding rapidly: the GST reconciliation software market was valued at $1.5 billion in 2024 with projections of $4.2 billion by 2033 (15.2% CAGR).

Current demand indicators are substantial: India now has over 15.2 million active GST taxpayers as of May 2025, up from 7.8 lakh in the initial 23 days after GST launch in July 2017—representing 19x growth or approximately 9% CAGR over eight years. Monthly GST collections averaged ₹1.84 lakh crore in FY 2024-25, with the highest-ever collection of ₹2.10 lakh crore in April 2024 and second-highest of ₹2.01 lakh crore in May 2025.

The informal consulting sector: an estimated 700,000-900,000 professionals

Beyond registered CAs and formal firms lies a substantial informal consulting ecosystem. Industry estimates suggest 700,000-900,000 informal/unregistered consultants provide GST services, primarily to MSMEs and small businesses in Tier-2 and Tier-3 cities where CA penetration is lower.

This estimate derives from gap analysis: if the total consultant requirement is 1.3 million (2017 industry projection) and formal practitioners number 400,000-450,000 (including 159,557 practicing CAs, Big Four employees, and mid-sized firm professionals), the difference suggests 700,000-900,000 informal practitioners. These include bookkeepers offering GST services, accountants without CA qualification, tax consultants with commerce/law degrees, and part-time advisors.

Market structure thus divides into organized and unorganized sectors. The organized sector includes the Big Four, mid-sized domestic firms (Grant Thornton India, BDO India, Nangia & Company, Dhruva Advisors, BMR Advisors), registered CA firms, and formally enrolled GST Practitioners. The unorganized sector comprises individual consultants, small accounting services, and regional practitioners operating below the registration threshold.

Business directory data supports this scale: IndiaMART lists over 1,000 GST consultant service providers across major cities including Delhi, Mumbai, Bengaluru, Pune, Chennai, Thane, Hyderabad, Ahmedabad, Kolkata, Jaipur, and Gurugram. However, this represents only digitally-listed providers and likely undercounts the total informal market.

The GST registration threshold (₹20 lakhs for services) and composition scheme (₹50 lakh threshold) allow many small consultants to operate without GST registration themselves, contributing to difficulty in quantifying this segment. Many serve micro-enterprises and individual proprietors who require basic compliance support rather than sophisticated advisory services.

## Growth trajectory: 173% revenue increase driving explosive consultant demand

GST implementation on July 1, 2017 created an immediate demand shock. The first year saw a 50% increase in indirect taxpayers, adding 3.4 million new registrants beyond those migrating from the old VAT/service tax system. Additionally, 1.7 million businesses below the threshold limit registered voluntarily to claim Input Tax Credit benefits.

Year-by-year GST revenue growth demonstrates market expansion:

| Financial Year | Gross GST Collection | Y-o-Y Growth |

|—|—|—|

| 2017-18 | ₹7.41 lakh crore | Baseline (9 months) |

| 2018-19 | ₹11.77 lakh crore | 59%* |

| 2019-20 | ₹12.22 lakh crore | 3.8% |

| 2020-21 | ₹11.37 lakh crore | -7.0% (COVID impact) |

| 2021-22 | ₹14.83 lakh crore | 30.5% |

| 2022-23 | ₹18.08 lakh crore | 21.9% |

| 2023-24 | ₹20.18 lakh crore | 11.6% |

| 2024-25 | ₹20.13 lakh crore | 9.4% (est.) |

*Not directly comparable due to partial first year

This represents 173% growth from 2017-18 to 2023-24, with collections stabilizing at sustained 9-11% annual growth rates. The cumulative total exceeds 162 crore GST returns filed since implementation, each requiring professional preparation or review for most businesses.

Professional services sector response was immediate and aggressive. In 2017-18, the Big Four expanded rapidly: Deloitte added 20 partners from KPMG to reach 75 tax advisory partners, EY deployed 125 partners in tax advisory, KPMG maintained 250 advisory partners with plans for 15-20 additions, and PwC operated 113 partners. By 2024-25, Big Four firms planned to hire 100,000 people collectively, with Deloitte targeting 40,000-50,000 new employees, PwC adding 30,000 over five years, and KPMG recruiting 20,000 over 2-3 years.

GST has fundamentally reshaped CA practice. Pre-GST, service tax applied only to the services sector; post-GST, indirect tax compliance affects virtually all businesses with turnover above ₹20 lakhs. Industry data indicates GST now represents 30-40% of practice revenue for many CA firms, compared to the relatively minor role of service tax previously. All 98,967 registered CA firms now offer GST services as standard.

Geographic concentration: the top 5 states account for 54% of collections

State-wise GST collection data for FY 2024-25 (till February 2025) reveals extreme geographic concentration:

|—|—|—|—|

| Maharashtra | ₹3,28,321 crore | 12% | 21.5% |

| Karnataka | ₹1,46,066 crore | 10% | 9.6% |

| Gujarat | ₹1,24,654 crore | 10% | 8.2% |

| Tamil Nadu | ₹1,19,320 crore | 8% | 7.8% |

| Haryana | ₹1,08,714 crore | 16% | 7.1% |

| Uttar Pradesh | ₹1,02,256 crore | 10% | 6.7% |

| Delhi | ₹70,863 crore | 17% | 4.6% |

| West Bengal | ₹61,065 crore | 7% | 4.0% |

| Telangana | ₹57,586 crore | 6% | 3.8% |

| Odisha | ₹55,119 crore | 11% | 3.6% |

The top 5 states alone account for 54% of national GST collections, indicating where the highest density of consulting demand exists. Fastest-growing states include Haryana (16%), Delhi (17%), and Bihar (16%), suggesting emerging markets for consultant expansion.

Taxpayer distribution by state (July 2020 data) shows Maharashtra leading with 1.56 million taxpayers (12.6%), followed by Tamil Nadu (~1.1 million, 8.9%), Uttar Pradesh (~1.05 million, 8.5%), Gujarat (~1.0 million, 8.1%), and Karnataka (~950,000, 7.7%). These concentrations correlate directly with economic activity: Maharashtra hosts financial services and manufacturing hubs in Mumbai and Pune, Karnataka centers IT services in Bangalore, Gujarat dominates manufacturing and chemicals in Ahmedabad and Surat, Tamil Nadu leads in automobiles and textiles around Chennai, and Haryana benefits from the Gurugram-Delhi NCR corporate cluster.

Metropolitan concentration is pronounced. Tier-1 cities—Mumbai, Bangalore, Delhi-NCR, Chennai, Ahmedabad, Pune, Hyderabad—host the vast majority of Big Four offices, mid-sized consultancies, and leading CA firms. However, 15% of new Global Capability Center (GCC) mandates shifted to Tier-2 cities in 2023-25, with Pune, Ahmedabad, and Chandigarh seeing increased GST consultant presence driven by cost arbitrage.

Regional practice characteristics differ significantly. North India is projected to capture the largest accounting software market share by 2030 with hubs in Delhi, Gurugram, Noida, and Chandigarh. West India, particularly Mumbai and Gujarat, focuses on manufacturing and trading. South India concentrates on IT services (Karnataka, Telangana) and automobile manufacturing (Tamil Nadu) with strong compliance culture. East and Central India represent smaller but growing markets, with Kolkata, Jharkhand, and Odisha showing steady development.

Key growth drivers: complexity, formalization, and digitalization

Regulatory complexity remains the primary demand driver. GST features multiple tax slabs (0%, 5%, 12%, 18%, 28%, plus cess), frequent rate changes and amendments, e-invoicing mandates (extended to ₹5 crore+ businesses in January 2025), Input Tax Credit reconciliation requirements, and the dual CGST/SGST/IGST structure. Compliance obligations include monthly/quarterly returns (GSTR-1, GSTR-3B), annual returns and reconciliation statements (GSTR-9, GSTR-9C), e-way bill generation, and Reverse Charge Mechanism compliance.

Economic formalisation accelerated dramatically post-GST. The 50% increase in indirect taxpayers in the first year, adding 3.4 million registrants, demonstrates the shift from informal to formal economy. 1.7 million voluntary registrations by sub-threshold businesses seeking Input Tax Credit benefits further indicates formalization incentives. Current estimates suggest 31% formal payroll under social security definitions, 53% under GST net definitions, with 13% of estimated 71 million non-agriculture enterprises now registered under GST.

Digital transformation creates continuous consulting demand. The end-to-end digital GST system (GSTN platform), e-invoicing, e-way bills, automated return filing, AI/ML-based analytics, and biometric Aadhaar authentication require professional implementation support. Technology consulting commands 51.63% of the accounting professional services market, covering ERP migration, GST software integration, cloud-based accounting solutions, and cybersecurity advisory.

Inter-state trade facilitation expanded significantly. India’s internal trade in goods and services represents approximately 60% of GDP, with inter-state trade volumes significantly exceeding pre-GST estimates. The unified national market eliminates state border checks, reduces logistics costs and transit times, but requires multi-state registration support, place of supply determination, IGST vs. CGST/SGST optimization, and supply chain restructuring—all consultant-intensive activities.

SME and startup growth drives middle-market consulting. Threshold-exempt businesses increasingly opt for voluntary registration, startups require GST compliance from inception, and government initiatives (Startup India, Make in India) accelerate business formation. India’s digital economy is projected to reach $1 trillion by 2025, creating continuous demand for registration, initial compliance, tax planning, software selection, and training services.

Global Capability Centers (GCCs) and MNCs represent the high-value consulting segment. India hosts 1,580 GCCs (FY 2023) generating $46 billion in exports, projected to reach $110 billion by 2030, with 24 centers exceeding $1 billion revenue in FY 2024. These require sophisticated services: “capability-center-as-a-service” models, transfer pricing and GST integration, dual compliance (India plus home country), and shared services accounting.

Government enforcement intensification creates defensive consulting demand. Data analytics and AI for tax evasion detection, fake Input Tax Credit and shell company crackdowns, registration suspensions/cancellations, mandatory e-invoicing expansion, and integration with ICEGATE (customs) and FASTag (logistics) drive demand for compliance audits, GST litigation and dispute resolution, voluntary disclosure and rectification, and representation before authorities.

Future outlook: 8-11% CAGR through 2030 with technology disruption

Market growth projections remain robust across multiple segments. The India accounting professional services market is forecast at 8.5% CAGR through 2030, with GST reconciliation software growing at 15% CAGR and technology consulting for GST at 8.41% CAGR. GST collections are projected to reach ₹22+ lakh crore in FY 2025-26 with monthly averages of ₹1.8-2.0 lakh crore and continued 7-10% annual growth.

Emerging opportunities include GST 2.0 reforms (proposed rate rationalization merging 12% and 18% slabs, simplified return filing systems, enhanced automation and AI integration, expanded product coverage), new service areas (ESG and sustainability reporting integration, blockchain for GST compliance, predictive analytics for tax planning, cross-border e-commerce taxation), and geographic expansion into Tier-2/Tier-3 cities with rural formalization initiatives and regional language support services.

Challenges ahead include market saturation risk from cloud-based DIY software (Tally, Zoho, QuickBooks) priced under ₹12/month, commoditization of routine compliance services, and price pressure on low-complexity assignments. Talent requirements demand tech-savvy tax professionals, continuous training on regulatory changes, and multi-disciplinary skills combining tax, IT, and data analytics. Regulatory uncertainty from frequent policy changes, state-level implementation variations, and litigation backlogs creates planning difficulties.

Technology disruption potential is significant. In 2024, 44% surge in remote consulting occurred with 58% of advisory interactions now virtual. 21% of firms are integrating AI for GST compliance automation. The accounting software market shows rapid cloud adoption, with North India projected to lead market share by 2030 due to increased IT spending. Quick commerce and e-commerce are driving indirect tax complexity, requiring sophisticated technology solutions.

Professional supply constraints may emerge. To reach ICAI’s target of 30 lakh (3 million) CAs by 2047, the institute needs 130,000 new qualifications annually—more than four times the current rate of 31,000-32,000. Current growth of 7-8% annually is insufficient, suggesting either supply constraints will limit formal consulting capacity or alternative professional pathways (Company Secretaries, Cost Accountants, specialized GST certifications) will fill the gap.

Conclusion: a massive sector operating in statistical shadows

India’s GST consulting sector represents a $7+ billion industry employing approximately 1.3 million professionals (formal and informal) serving 15.2 million taxpayers, yet remarkably lacks official government enumeration. The absence of published statistics on registered GST Practitioners despite a formal regulatory framework represents a significant data gap in understanding India’s professional services economy.

What we know with confidence: 159,557 Chartered Accountants hold Certificates of Practice (February 2025) and most provide GST services through 98,967 registered firms. The Big Four generate approximately $5.4 billion annually (FY25 expected) with sustained 20%+ growth. ICAI delivered 1,432 GST-focused CPE programs in 2023-24 alone, trained over 2,000 government officers, and conducted 160+ Certificate Course batches since 2017. GST taxpayer registrations grew 19x from 780,000 (July 2017) to 15.2 million (May 2025), while collections increased 173% from ₹7.4 lakh crore (2017-18) to ₹20.2 lakh crore (2023-24).

What we estimate with reasonable confidence: Total consulting professionals number 1.3 million (2017 industry projection remains relevant), split between 400,000-450,000 formal practitioners (CAs, Big Four, organized firms) and 700,000-900,000 informal consultants serving smaller businesses. The market grew 18% from 2016-2018 during GST implementation and continues at 8-11% CAGR. Geographic concentration mirrors economic activity, with top 5 states (Maharashtra, Karnataka, Gujarat, Tamil Nadu, Haryana) accounting for 54% of collections.

Critical data gaps persist: exact numbers of registered GST Practitioners, state-wise practitioner distribution, NACIN exam participation and pass rates, formal vs. informal market segmentation, year-by-year historical practitioner growth, and revenue contribution by consulting category (compliance vs. advisory vs. litigation). These gaps prevent precise workforce planning, educational program design, or regulatory policy optimization.

The sector’s evolution follows four distinct phases: implementation chaos with massive consultant hiring (2017-2019), COVID disruption accelerating digitalization (2020-2021), stabilization with technology integration and compliance maturity (2022-2024), and the emerging GST 2.0 era featuring AI/ML adoption, advisory-led services, and Tier-2 expansion (2025+). Each phase has reshaped professional requirements and market structure.

For businesses, this research confirms both opportunity and uncertainty: demand for GST services remains strong and growing, supported by regulatory complexity, economic formalization, and digital transformation imperatives. However, commoditization threatens routine compliance services as DIY software improves, while high-value advisory work requires increasingly sophisticated multi-disciplinary capabilities. The informal sector serves a critical market function but operates with minimal visibility, quality standards, or professional accountability.

For policymakers, the data gap is problematic. Without accurate practitioner counts, authorities cannot effectively plan capacity building initiatives, assess service quality and coverage, identify underserved geographic areas, or evaluate whether professional supply meets compliance demand. The contrast between meticulous GST revenue tracking and complete absence of practitioner statistics suggests a policy blind spot.

Obtaining reliable data would require: filing RTI (Right to Information) applications with GSTN, CBIC, and NACIN; searching Lok Sabha/Rajya Sabha parliamentary question databases; conducting comprehensive ICAI member surveys on practice areas; analyzing individual state GST department registries; or commissioning primary research through market surveys. Until such efforts occur, India’s GST consulting sector remains statistically invisible despite its critical role in the country’s tax administration infrastructure.

Data privacy in the age of Agentic AI: compliance challenges for SaaS platforms

By

Anshi Mudgal

-

September 29, 2025

0

Data privacy in the age of Agentic AI — Image Source : https://shorturl.at/EcMR7

This article is written by the iPleaders team.

Table of Contents

Introduction

AI is not just moving fast but changing shape. You will not find SaaS platforms just offering handy tools that help users click through the task. What seemed futuristic is in the market now. What we are talking about now is agentic AI systems that set goals, make decisions, and act with minimal human oversight.

For instance, it was found by the Irish Data Protection Commission in November 2023 that Microsoft Ireland breached Articles 12 and 17 of the GDPR. Why? They mishandled erasure requests properly and failed to inform complainants of their right to a judicial remedy. If giants like Microsoft can miss on complying with something as fundamental as consent, erasure, and transparency, then this is a wake-up call for every platform building or deploying AI

Yet, enthusiasm is hard to miss. In a survey conducted by PwC in 2025, it was found that about seventy-three per cent of executives believe that AI agents are going to give them tough competition in the coming years. And not to miss, about fifty-seven per cent are already experimenting with the in customer service, sales, and IT. But where does the issue lie? Many companies are racing without a clear framework.

This autonomy in AI promises speed, creativity, and scale, yet heightens legal exposure around consent, profiling, fairness, and oversight. As laws like the GDPR, CPRA (California), and India’s Digital Personal Data Protection Act, 2023 begin to intersect with agentic AI’s capabilities, one question becomes urgent: are today’s laws enough? And more practically, what compliance frameworks can SaaS platforms adopt now to stay ahead?

Regulatory landscape

The rise of Agentic AI across SaaS platforms has created a real gap between technology and the law. The speed of regulatory reforms is not matching the autonomy of AI. Yes, we do have frameworks that offer some guidance. But things get blurry very quickly when it comes to self-learning and decision-making systems.

General Data Protection Regulation (GDPR)

Let’s start with GDPR, because when we talk about AI-driven decision-making, it is still the gold standard. Starting with Article 5, which mandates principles like transparency and data minimisation. The basic need, like a lawful consent, is laid down by Article 6. But the real game-changer is Article 22. This gives the right not to be subject to decisions made solely by automated processing if those decisions have a significant effect.

This provision was central in SCHUFA (C-634/21, CJEU, 2023), the court ruled that automatically generated credit scores constitute “automated individual decision-making” under GDPR Article 22 when third parties rely on them for contractual decisions. This highlights the need for transparency and safeguards in automated decision processes affecting individuals’ legal rights. Similarly, in Dun & Bradstreet Austria GmbH (C-203/22, CJEU, 2025), the court clarified that companies must provide “meaningful information” about the logic of automated assessments under Article 15, even when trade secrets are invoked. For SaaS firms deploying agentic AI, these rulings confirm that opacity in decision-making is a legal liability, not just a reputational one.

California Privacy Rights Act (CPRA)

California’s CPRA gives consumers the right to opt out of automated profiling where it impacts areas like employment or housing. Enforcement is also tightening. In 2022, Sephora was fined US$1.2 million under CCPA for failing to honour global privacy control signals. While not directly about AI, the case underscores regulators’ seriousness about data rights, which will extend to autonomous AI profiling as CPRA’s rule-making on Automated Decision-Making Technology (ADMT) advances.

India’s Digital Personal Data Protection Act, 2023

And then we have the DPDP Act of India, A very consent-centric law. It provides that people must know why their data is being collected (Article 5). With regard to consent, it provides that the consent must be free, informed and specific (Article 6). It also put responsibilities on the companies (or “data fiduciaries”) around security, accuracy and grievance redressal.

But something is missing. What?

The law does not have explicit rules on automated decision-making or profiling, unlike GDPR or CRPA. This creates a grey zone for SaaS providers in India, raising compliance uncertainty.

Agentic AI use-cases in SaaS & associated risks

With the ability to make decisions on its own, Agentic AI is popping up everywhere on SaaS platforms. This may look like a huge win: faster workflow, smarter insights and fewer manual processes.

But there is a flip side. What?

The more the system is autonomous, the bigger the privacy and compliance headaches. Let’s see some examples.

EdTech: GoGuardian Beacon

An AI-driven student safety platform, GoGuardian Beacon, is used by over 10,000 schools and monitors about 25 million students across the US. It analyses online activities to detect and prevent bullying, self-harm and catch other distress indicators. Since its launch in 2020, it has prevented about 18,623 students from physical harm.

But critics have something else to say. They claim that there is a lack of transparency in this system, which often works with explicit consent from students and parents.

In fact, this is more dangerous for the LGBTQ+ students, as this could unintentionally expose their highly personal data.

CRM platforms: Obsidian security’s oversight on AI tools

Corporations are plugging GenAI tools into their CRM platforms. But Obsidian Security has flagged pretty serious risks. What risks are we talking about? These tools run with little to no oversight. It can tap into sensitive data without a proper guardrail. And this data may extend up to personal financial details and healthcare reports.

This issue gets worse because many CRM systems do not have a clear privacy policy and strong governance measures. And because of this, many big problems may occur.

If the real-time monitoring and strict controls do not come into place, then what started as a move to boost efficiency will turn into a costly liability.

E-commerce shopping agents and personalisation risks

Did you know that agentic-AI is deeply integrated into the operations of retail giants like Amazon and Walmart?

Approx thirty-five per cent of the revenue is driven by the product recommendations given by personalised engines of Amazon, which works as a quite powerhouse. The backend agent that a built on SageMaker is also handling the pricing model, managing fulfilment and customer segmentation.

Coming to Walmart, its Luminate platform uses AI agent to manage restocking and personalise the shopping experience in real time.

But the concerning part is that customers are often not informed of how and why their data is being used. So many times, they are unaware that they are being monitored. This raises concerns regarding some dangers that occur because of this invisible personalisation, like profiling, tracking and segmentation of people without consent.

The problem is not agentic AI itslef, but the way it is governed. To determine whether it is a powerful asset or a liability, three factors are responsible: consent, culture and communication.

SaaS platforms, when skipping consent checks, neglect explainability or blur data boundaries, risk compliance failure and lose user trust. Every autonomous agent needs a guardrail, designed around this purpose, the type of data it touches and the impact it has on people.

Compliance framework: a risk-based approach

It is quite clear from the examples that the real problem is launching AI without thinking through the risks. Compliance is about giving innovation a backbone with structure and accountability. That is why a risk-based mindset is a must.

Data Protection Impact Assessments (DPIAs)

A DPIA is basically a privacy health check that helps to spot risks before any AI tool launches. Especially those that interact with personal and behavioural data. Skipping it would be a trouble.

Let me take you through a case that happened in 2020, where Vodafone was fined by the Italian Data Protection Authority for about 12.25 million Euros.

But what did it do?

It launched an AI-powered marketing campaign without conducting a DPIA. It also overlooked the consent, data handling and opt-out options, and guess what? They paid the price.

What is the smarter approach? You should not ask if you need a DPIA. Ask why one is not on the table?

Giants like Microsoft even say it is a good practice, even when not legally required. In fact, the regulators in the Gulf are starting to make them mandatory for high-risk AI.

From policy to practice

Of course, even on paper, audits go so far. These AI systems need to be built with guardrails. Let’s see one vulnerability case of Slack that happened in August 2024. A security researcher disclosed a vulnerability in the AI toolset. It was shown how a prompt injection could trick its AI into phishing employees and exposing their sensitive data.

And here is where red teaming and audit trails come into play. Red teaming is stress-testing AI before launch and an audit trail is logging every action for accountability. Hence, the message is clear: compliance is not an afterthought but a part of building a trustworthy AI system from day one.

Policy and governance measures: building trustworthy AI

Good engineering controls are important, but if there is no accountability, then they will not go very far. Hence, governance is not an option, but it works as the foundation of trust of people in AI.

The role of data protection officers and ai ethics governance

GDPR mandates those companies handling a large amount of personal and sensitive data to appoint a Data Protection Officer (DPO) under Article 35. But companies are moving a step further. To keep ethical oversight front and centre, companies are appointing an AI ethics officer or setting up responsible AI councils, since AI make more complex and high-impact decisions.

Leading companies in AI governance

Microsoft

Microsoft has embedded Responsible AI leads in their production teams. They collaborate with the Office of Responsible AI to flag risks, address ethical concerns and keep compliance on track.

Salesforce

Salesforce rolled out a tiered AI governance framework that includes “red flags” review boards to check and prevent AI-related risks.

Zoom

Zoom has launched an AI companion with granular admin controls to tackle unauthorised AI tools. This allows businesses to check who uses AI and how.

SAP

SAP took a multi-layered approach, combining an AI Ethics Advisory panel, an AI Ethics Office and an AI Ethics Board. These all worked together to ensure comprehensive oversight of AI initiatives.

Why does it matter?

These measures bridge the gap between the deployment of AI and staying accountable. No doubt, appointing a DPO meets legal obligations, but appointing an AI Ethics Officer reflects strategic foresight.

Governance is not just a safeguard, but it is a driver of responsible innovation when legal, engineering and product teams collaborate early.

The path ahead: preparing for future scrutiny

Privacy issues in agentic AI are not just a prediction; it is already happening. We are seeing these real risks play out, happening from classrooms to hospitals to customer service desks. This means clear rules and strong oversight are no longer options, specifically in sensitive cases where the impact on people’s lives is highest.

EU AI Act: a new regulatory landscape

The EU Artificial Intelligence Act came into effect on 2nd of August 2024. It has categorised AI tools such as customer support chatbots or software that detects emotions as “high risk” (Article 6(2) and Annex III).

If any SaaS company uses such tools without proper checks and human oversight, from 2nd August 2026. In that case, it will be fined up to thirty-five million Euros or seven per cent of their global revenue, whichever is higher.

The message is simple: if any decision made by AI affects the jobs, well-being and opportunities, then it is your duty to explain how it works and why. These are not just restrictions but also give a new baseline for building digital trust.

India’s DPDPA: emerging oversight

India is not behind and is moving in the same direction with the DPDP Act 2023. We are expecting detailed rules and regulations by the Ministry of Electronics and Information Technology by 28th September 2025. The earlier draft released in January 2025 already calls for explicit consent, clear notices, quicker breach reporting, and shorter data retention periods. However, the Act does not yet tackle automated decision-making head-on. But this helps build a platform for tighter AI regulation in finance, healthcare and edtech.

Strategic implications for SaaS providers

Now, it is high time for SaaS providers to stop seeing the EU as normal and regional rules, but should now start using and treating them as the global norms. It is always seen that when the rules and regulations are strict, then the platforms remain well-structured and won’t fall into any trouble.

Conclusion

The pattern of work in the SaaS platform has changed since Agentic AI came. Now it not only does what it has been instructed to do, but it can automatically run the workflows, talk to the users directly and make decisions. This is a reason why data privacy cannot be just ignored or taken lightly for compliance. The data privacy is embedded in the platform from the beginning.

We’ve already seen real risks in practice: CRM tools wrongly tagging personal data, learning platforms tracking students without asking, and customer churn models making unclear automated choices. Big cases with Microsoft, Zoom, and WhatsApp show that poor oversight can lead to legal trouble and damage a company’s reputation. On the other hand, platforms that use tools like risk assessments (DPIAs), red-teaming, audit logs, and clear AI governance show that following compliance rules can actually help drive safe innovation.

The focus now is not on whether regulation is needed; it is on how proactively SaaS providers prepare. With the EU AI Act setting a global benchmark and India’s DPDP rules evolving rapidly, platforms must embed accountability into their products.

It is the time that you check your AI systems. Also, ensure that transparency and privacy are embedded in it in every step and use the AI as a power, not as something which gives you doubt to think again.

References

Did you waive your rights by clicking ‘I agree’? Airline contracts in the spotlight after a crash

By

Anshi Mudgal

-

September 16, 2025

0

Airline contracts in the spotlight after a crash — Image Source - https://shorturl.at/pCIOS

This article is written by the iPleaders team and reviewed by Adv Shashank Singh. He is specialised in aviation law with extensive experience advising on aircraft leasing, MRO agreements, and cross-border aviation contracts. He practices before the Supreme Court of India, Delhi High Court, and key tribunals, combining expertise in complex commercial disputes, white-collar crime, IBC and international arbitration with a strong focus on regulatory clarity and strategic outcomes.

Table of Contents

Introduction

In the present-day digital schemes, the act of purchasing an airline ticket never stops at choosing a particular seat; one must always click “I agree” to a long list of terms and conditions. These often-underrated digital contracts are commonly loaded with complex legal jargon, having within their ambit clauses that exempt them from liability and any possible claims, having a requirement for mandatory arbitration, and placing strict limitations on claims grounded in negligence. The deliberately complicated provisions, lodged somewhere deep within the layers of fine print, have the ostensible intention of making easy-going corporate life, but in reality, most travellers are unaware of them.

In this cruel hypothetical air crash scenario of Air India Flight AI-171, families discovered that their rights to compensation were tied not to statutory protections but to the fine print of ticket contracts. This gloomy setting surely presents questions with bane: How aware are consumers of such types of situations?

Had you indeed unknowingly waived the right to full compensation in case of a crash when clicking “I agree” to airline terms? In the more complex aftermath of such an incident, what truly are the legal boundaries on the enforceability of such digital agreements, and how will the evolution of case law affect the rights of victims going forward? How it plays into clauses of Aviation contracting will be delved into further.

After all, “Clicking ‘I Agree’ should never mean surrendering the right to justice. The law cannot allow fine print to reduce human life to a clause.”

The anatomy of airline contracts: what do ticket T&Cs typically include?

When the passenger clicks on the “I agree” icon while booking flights online, one essentially accepts airline contracts that the Supreme Court has recognised as binding in law. The T&Cs form the civil basis for the passenger-carrier relationship, and yet only about 12% of consumers bother to read them. Hence, ticket agreements become a contractual black box full of complicated legal commitments.

The terms and conditions of airlines usually have a few standard clauses that are very much in favour of the carrier. Limitation of liability is a prominent clause. Airlines provide nominal compensation for lost baggage, limited under international conventions, like the Montreal Convention, 1999, of the order of roughly $8.33 per kilogram.

Another important clause is one relating to mandatory arbitration. Instead of allowing passengers their day in court in local jurisdictions, airlines may insist on arbitration in a specific locale, often under Singaporean law or that of the U.S. This limits consumer access to convenient legal remedies and tilts the scales in the airline’s favour.

Force majeure clauses act to relieve airlines of liability by excluding responsibility for events out of the control of an airline: natural disasters or a pandemic. Consequential damages are usually excluded, meaning airlines do not pay for indirect losses, like missed wedding parties, interviews, or bookings for hotels, unless they are clearly at fault.

Adding on to the unfairness, many contracts also contain class action waivers. Such provisions block passengers from bundling efforts in challenging unfair practices; each alleged wronged traveller must proceed single-handedly on claims commonly too minor to justify pursuing.

Post-accident enforceability of waiver: balancing act in the law

After air crashes, passengers or their families are often confronted with airline waivers limiting their ability to proceed legally. Whether such waivers are enforceable depends on whether they survive judicial scrutiny employing principles of contract law fairness, transparency, and absence of unconscionability.

Courts have undertaken various legal tests in assessing waiver validity. One of the foundational principles under the law of contracts is that an agreement to be binding must be entered into voluntarily with free consent and must, therefore, not be oppressive to one party to the contract. Thus, unfair or hidden conditions, especially those limiting liability or imposing arbitration in very distant forums, can be declared unconscionable.

The Nandram case stressed the point about unconscionable contract terms, especially if they are foisted upon the weaker party without negotiations; they are subject to being declared void. The judgment stressed that freedom to contract cannot be absolute; it has to be weighed against the demands arising from justice and equity.

The Montreal Convention provides the basis for airline liability in international carriage, giving passengers minimum protection under Articles 17 to 21. They set strict liability depending on certain thresholds (i.e. bodily injury or death for 128,821 SDRs). While airlines cannot limit the passengers’ claims up to these limits, attempts to lower them through waivers are usually voidable. The courts have determined that waivers contrary to statutory protections cannot be enforced, thereby superseding mandatory international obligations.

The litigator challenging these post-crash waivers is well-advised to consider several basic factors:

Conspicuousness: Was the waiver clearly disclosed, or hidden in fine print?
Consent: Did the passenger agree thereto knowingly or did conscience object?
Bargaining Power: Could anything have been negotiated, or was it take it or leave it?
Unconscionable: Has conscience itself been shocked by the ultra-one-sided bargain?

A good strategy points to the procedural unfairness and inequality of bargaining power and” in derogation of statutory or treaty protection.” Courts are much more likely to strike down the clauses that appear exploitative, particularly in the hyper-emotional context of aviation disasters.

In short, while waivers from airlines are common, their enforceability is not absolute. Courts weigh the liberty to contract with considerations of justice, especially when lives are involved.

Case spotlight: Air India flight AI-171 & digital ticket terms

The tragic Air India Flight AI-171 crash raised not only concerns about aviation safety but also the legal complexities concerning the terms of digital tickets. This accident during descent into Ahmedabad had many casualties and injuries. While the cause is still under active investigation, the families of the victims find themselves in legal battles surrounding the enforceability of ticket terms and conditions (T&Cs).

Arguably, the most contentious clause in the AI-171 ticket contract concerns arbitration being held in Bangalore with compensation capped at ₹50,000. Such conditions were set in the digital booking platforms and were “agreed” to when passengers or their representatives clicked through the booking process. After the crash, several grieving families were shocked at the thought that there existed such limiting provisions.

When the Bombay High Court was approached by several victim families, the legal wrangling began. The Court issued interim injunctions restraining Air India from acting on the arbitration clause. It was held that enforcement of such a clause perhaps would amount to a denial of substantive justice, especially in the aftermath of a fatal mishap. The public interest petition filed in conjunction with the case described this arbitration agreement as a “blanket denial of justice” in that the families simply did not have a real opportunity to negotiate or review these terms.

The ticket contract would be characterised as an adhesion contract. Such contracts, more so within the consumer context, do open themselves up for judicial scrutiny under the doctrines of unconscionability and unfair surprise. Basically, the courts look at whether the party who is the weaker one really had a choice and whether the terms were laid out before him in a conspicuous manner.

Here, the families argue that the clause for arbitration and the cap for compensation were not just unfairly buried from consideration but were, in reality, unremunerative of the anguish suffered.

In practice, litigators can show families procedural unfairness, consider the lack of consent, and the fact that an undue burden has been placed on victims in pleading cases against enforcement. The important thing that weighs against enforcing such stiff clauses is the toll of the tragedy itself.

To flash around some of the points considered, the AI-171 matter clarifies the requirement for putting digital consent under the microscope in high-stakes contracts. It brings to the fore questions relating to justice, empathy, and the ethical limits within which an aircraft contract may be enforced.

Other aircraft disasters & how contractual issues intervened

An examination of major airline disasters reveals that ticket terms and conditions have constantly been a source of legal tussle, especially clauses relating to arbitration and limits of liability. Such contractual stipulations have, in many instances, been embedded in digital booking processes and have drawn judicial scrutiny in more than one jurisdiction.

In the MH 370 case of Malaysia Airlines, families were asked to agree to an arbitration in Hong Kong as a condition to partial compensation. This condition has received much negative criticism, and several families have legally defended this issue.

Similarly, in the aftermath of Lion Air Flight JT610 (2018) and Ethiopian Airlines Flight 302 (2019), the families of the victims filed their actions in the United States and in other jurisdictions.

Restrictive contractual provisions were bypassed by counsel for the plaintiffs, invoking elements considered in the Montreal Convention, chiefly Articles 17 and 21 relative to airline liability. This strategy thus allows for outward representation within public judicial systems instead of private arbitration forums.

As this happens in various tragedies, an express pattern appears: digital acceptance mechanisms are increasingly being challenged by passengers and their lawyers. In India, for instance, pleadings under the Consumer Protection Act, 2019 highlight the absence of real consent and the one-sided nature of airline contracts. Families contend that consumers are not meaningfully informed about dispute resolution clauses, let alone allowed to negotiate them.

The slow but discernible shift now tends toward consumer protection from unfair contractual waivers.

Human life cannot be trivialised by contract

There is a need to draw a clear line between contracts for the carriage of goods and those for the carriage of passengers. Under Indian contract law, a carrier dealing with goods may, by agreement, limit liability for loss or damage. Courts have respected such waivers in cases involving cargo, recognising that both parties entered into the arrangement with a full understanding of the risks. But this principle has no place when it comes to passengers. Here, statutory protections step in and override any contractual attempt to curtail rights

The Carriage by Air Act, 1972, which incorporates the Montreal Convention, makes airlines strictly liable for death or bodily injury. Clauses that seek to cap compensation at token amounts or compel grieving families into distant arbitration forums have repeatedly been tested against public policy, fairness, and the doctrine of unconscionability. Recent case law brings this out sharply, in Vinay Shankar Tiwari v. IndiGo Airlines, 2013, the Ld. Uttar Pradesh State Consumer Disputes Redressal Commission held that airlines cannot rely on digital ‘I Agree’ booking systems to contract away their duty of care or basic fairness. The Commission observed:

…“There is no doubt that a passenger is bound by the terms and contract of carriage, but… the Airlines Authority should help the passengers so that they can board the scheduled aircraft after completion of the security measures in time.”…

Domestic consumer law vs privity and digital contracts

In the evolving legal landscape of airline disputes, Indian consumer law is now being used to challenge restrictive terms in digital contracts. The typical doctrines of contracts, privity or consent are set aside in favour of an alternate framework focusing on the fairness and welfare of the consumer under the Consumer Protection Act 2019.

On these lines, the CP Act protects consumers against unfair trade practices, including digital contracts with unilateral disclaimers and terms restricting legal remedies contained in hidden clauses. This Act recognises the imbalance of power prevailing in form contracts and allows consumer forums to knock down such terms when they go against public interest. Specifically, if an arbitration clause or a force majeure clause is an instrument that denies consumers access to justice, the forums may declare such provisions void.

International conventions & global consumer protection

Cross-border air travel places the passenger in the midst of international treaties and municipal laws. This regime is led by the Montreal Convention, 1999, which standardises airline liability for injury, delay, and baggage loss. The Convention expressly forbids carriers from contracting out of the minimum liability thresholds set by it, thus providing a baseline of protection to the passengers.

In the European Union, Regulation (EC) No 261/2004 (EU261) imposes further obligations on airlines so that compensation is to be paid in cases of cancellations, long delays, and denied boarding. Airlines have attempted to circumvent these obligations in the past through private agreements erga omnes, but the courts have, ever since the 2015 Paris terror attacks (Carnet case), stood resolutely against such attempts, thus declaring these rights under EU261 cannot be waived by contract. Consumer rights were neither suspended nor waived even in an act of terror.

Therein lies the jurisdictional challenge in India. While the Montreal Convention is binding as per international law, the enforcement under domestic jurisdiction has been specified by the Carriage by Air Act, 1972, Consumer Protection Act, 2019, and the Aircraft Rules, 1937.

This complex interaction shows how treaty-based rights and national consumer protections together fortify passenger claims, despite aggressive contracting by airlines.

Negotiating the fine print: practical advice for passengers & lawyers

In the high-speed world of online airline bookings, passengers and their legal representatives must remain vigilant about the contract terms they are bound by. Most ticketing platforms embed extensive terms and conditions (T&Cs) that include arbitration clauses, governing law, and liability waivers, all of which can have serious legal consequences.

An arbitration clause and governing law clause would be something to watch out for-they’re usually so deeply buried in a digital scroll box. A clause setting forth a foreign jurisdiction or a seat of arbitration can really deprive passengers of recourse before their local laws.

Such clauses can be contested against the principles of consumer protection and public policy, especially under the Consumer Protection Act, 2019, and the statutory Passenger Charter.

Maintain documentation: take screenshots, list timestamps, and describe where disclaimers appeared on screen during booking processes. Such digital evidence may assist an aggrieved party in proving that the terms were not fairly disclosed.

Ultimately, passengers should approach local consumer forums instead of international arbitration centres. These forums allow for cost-effective, rights-based remedies and are increasingly assertive in refusing to enforce unfair airline contracts.

Reform is possible: policy, courts, and airline self-regulation

Looking forward to a progressive path in airline contracting involves a combination of regulatory directives, judicial disciplining, and industry self-regulation. The DGCA can start out by promulgating directions requiring airline booking platforms to display arbitration clauses, liability waivers, and governing law terms plainly upfront. Presenting those clauses to passengers before payment would be one step in countering the practice of burying them in hyperlink text.

ICAO can be pressed internationally to lay down model directives on digital contract fairness, including disclosure standards and passenger consent mechanisms. These would help cross-fertilise consumer protection mechanisms across jurisdictions.

On the legislative side, India would do well to introduce a Consumer Protection (Digital Contracts) Bill 2024 that explicitly deals with standard-form digital contracts to maintain fairness, transparency, and true consent in aviation services. The present law can even go further and prohibit pre-dispute arbitration in consumer matters.

Another role courts can continue to act out is invoking public policy to strike down terms that are oppressive to passengers, who may have no negotiating power whatsoever.

Way ahead

It is also important to recognise that aviation is not casual about safety. Organisations such as Air India Engineering Services Limited (AIESL) operate under one of the most rigorous regulatory frameworks in the world. Before a flight takes off, the number of inspections, certifications, and compliance checks is formidable, spanning airworthiness directives to routine and non-routine maintenance. These multiple layers exist precisely to make sure that the catastrophic scenarios discussed in the article remain rare exceptions.

Looking ahead, there are broader perspectives that could further strengthen law and policy in this field:

Uniform liability

Extending Montreal-style compensation standards to domestic flights would prevent disparity between international and domestic passengers.

Advance compensation

Mandating transparent advance payment mechanisms would provide families with immediate relief after an accident, avoiding unnecessary hardship and litigation delays.

Digital contracting fairness

Passenger contracts should highlight statutory rights upfront in plain language, making aviation a benchmark for consumer protection in the digital space. Re-thinking consent: Regulations should clarify what cannot be tucked away in digital contracts, ensuring statutory protections remain untouchable.

Insurance enforcement

Compliance with mandatory liability insurance must be strictly monitored, so remedies remain real and enforceable.

Awareness campaigns

Periodic efforts by airlines and regulators to educate passengers about their rights, especially in digital ticketing contexts, would go a long way in reinforcing trust.

The real debate is not about airlines shirking responsibility, but about how law and regulation can continue to strike a balance. Transparency at the time of contracting, together with the formidable technical safeguards already woven into aviation practice, serves to protect both passengers and the industry. Clicking ‘I Agree’ must never mean giving up fundamental rights, and it should also remind us of the immense responsibility carriers and MROs shoulder in keeping every flight safe.

Conclusion

Airline ticket contracts often brush aside unfair terms with digital gloss, leaving passengers with nowhere to turn. This discussion outlines the methods by which courts, regulators, and consumers may oppose such unfair terms. The working definition of consent seems to require a real understanding and not just a click-induced, forced recognition. I therefore recommend the strengthening of disclosure requirements, judicial vigilance, and statutory safeguards, such as those envisaged by the Digital Contracts Bill. Industry players should also promote transparency and fairness. Passengers must insist on reading the key terms and document everything well, then enforce their rights in consumer forums. It is time to rebalance the skies; contracts should be for people, not against them. We should all rally for reform based on justice and transparency.

Frequently asked questions (FAQs)

Can airlines impose terms and conditions even if the person does not read them?

Yes, when the person clicks “I Agree”, then under contract law, it is generally considered a valid consent even if the person has not read the terms and conditions. On the other hand, the Court can also strike down the clauses that are unfair or violate any statutory protection.

Do airlines have the right to completely avoid any liability related to crashes through contracts?

No, airlines cannot completely avoid the liability related to a crash through contracts. Domestic laws such as the Carriage by Air Act, 1972, and International conventions such as the Montreal Convention set a minimum standard related to the liability and cannot be waived off through the contracts.

Do Indian passengers have different protection as compared to international passengers?

Yes, Indian passengers have different protection as compared to international passengers. The international passengers are protected under the Montreal Convention, and this also sets uniform global liability standards. On the other hand, the Indian passengers usually rely on the Carriage by Air Act, 1972, and the Consumer Protection Act, 2019.

References

When luxury aviation turns fatal: unravelling the legal aftermath

By

Anshi Mudgal

-

September 12, 2025

0

This article is written by the iPleaders team and reviewed by Adv Shashank Singh. He is specialised in aviation law with extensive experience advising on aircraft leasing, MRO agreements, and cross-border aviation contracts. He practices before the Supreme Court of India, Delhi High Court, and key tribunals, combining expertise in complex commercial disputes, white-collar crime, IBC and international arbitration with a strong focus on regulatory clarity and strategic outcomes.

Table of Contents

Beginning

For a long time, private planes have been the go-to travel choice for wealthy individuals. This has increased ever since the pandemic hit, in India and across the globe. With this, there has been a significant increase in private jet accidents as well.

Now these accidents are quite different from commercial planes, as these tragedies don’t make headlines. This triggers a storm of legal, financial and reputational battles. Several questions come up: Who is the owner? Who is liable? Will insurers pay up? And what happens to the vast estate suddenly left behind?

Just like the plane crash of Wagner chief Yevgeny Prigozhin, which resulted in his death in August 2023. He left behind his Embraer Legacy 600. This sparked a speculation of foul play, sabotage, pilot error and technical error.

On the outside, private aviation may look glamorous, but beneath that sheen lie serious gaps in laws and regulations.

This compels us to imagine how courtrooms examine these types of cases. Moreover, a major question that arises here is, when the rich fall from the sky, do law and justice fall with them?

Private planes vs commercial airlines: how legal frameworks differ

Both do not differ on the surface. Both involve a licensed pilot, passengers and an airworthy plane. But what differs in the framework on which they work.

Unlike commercial flights, private planes operate under far less scrutiny. Private jets usually operate under the Non-Scheduled Operator Permits (NSOPs) in India. This design gives flexibility to private operators, which is often misused, but they can choose their pilot, crew and set operational protocols.

Yes, private planes have a regulatory eye of the Director General of Civil Aviation (DGCA), but the level of oversight is nowhere near that of commercial flights. Commercial flights have to go through safety audits, compliance reviews and standard operating procedures. Private planes, on the other hand, work on loose rules, few inspections and diluted accountability.

This picture is not different on a global level. There are different frameworks that create a dense web of complications, like the Montreal Convention, DGCA protocols and ICAO norms, for commercial flights. But this web is far from the private planes. The NSOPs leave room for flexibility, which also dilutes accountability.

This is a huge challenge for the lawyers, insurers and the victim’s family. Which court has the jurisdiction? Compensation claims can be filed under which law? How will the damages be calculated? These are not abstract questions, but determine if the victim’s family gets fair compensation or stays stuck under a web of a long-running lawsuit.

Passengers are not treated as consumers

Which legislation helps when a commercial plane goes down?

The families of these passengers can file a lawsuit under the Consumer Protection Act, 2019. This is not the same for private aviation. The reason is basically because most of the passengers of private planes are either:

Owners
Company directors
Family members, or
Guests

This creates issues for the lawyers and family members of these victims. How?

Since these passengers are not ‘regular ticket holders’, they cannot go to consumer courts. Their legal remedies shift to contract law, tort claims and insurance litigation, and this makes the compensation process technical, expensive and very long.

Contractual ambiguity and waivers

In private aviation, the stakes of forms and waivers that are often signed are the foundation of a legal maze. These charter agreements are not easy. The clauses in these documents quietly shape what happens if something goes wrong.

You will find clauses like, liability limitation clause, the waiver clause and the jurisdiction clause, which very conveniently push the dispute into faraway or foreign arbitration forums like New York or Singapore. Litigation gets more challenging because of other exclusion clauses.

For the victim’s family, this creates an uphill battle. The legal battle is not shaped as per any straightforward legal rights but on the basis of the right waived when the agreement was signed.

Where the compensation claims are guided by the statutory safety provision and international guidelines, the outcome depends much on the contract. Which means, when the accident happens, the question is not about negligence or law, but about what was buried in the fine-printed agreements that passengers often sign without even understanding them completely.

Liability maze: Who can be sued after a private plane crash?

When a commercial plane comes down, it is easy to trace the liability. Things are quite strict and clear here. But private planes? Things get complicated quickly when it comes to determining the liability.

Private planes are tucked behind layered corporate vehicles, trusts or consortiums. Finding out who is liable is like digging through corporate documents, charter agreements and insurance policies, yet investigation reports do not always give a definite answer.

So who can be held liable? Let’s break down:

Pilot and cabin crew

First stop of any investigation.

They are at the centre of any investigation. Fatigue, human error or poor decision-making often put them at the centre of the liability claims.

Operator company

If the operator company neglects flight preparation, flight safety check or deployment of crew, then if any fatal accident happens, it finds itself in a legal crosshair.

Aircraft owner

Things are a bit tricky here. Often, the owner is not an individual, but a trust or a shell company registered in a tax haven. Finding out the real owner is an investigation in itself. They are usually hidden behind this network of shell companies.

Maintenance firms

If the crash is the result of mechanical failures or faulty repairs, then maintenance contractors shall also fall into the maze of liability.

Charter broker

The claims of misrepresentation of the safety of the private flights or failure to exercise proper due diligence may come against the broker who arranges the flight.

Manufacturer

This is not common, but if any defect in design or system is discovered, then manufacturers may come under the radar.

Insurers

Ultimately, compensation comes from the insurers and individual insurance policies. But it is often noticed that insurance companies act notoriously to avoid the obligation by conducting their own investigation and trying to pin blame elsewhere to limit payouts.

Liability does not rest on one party, actually. Multiple parties share the liability, jointly and severally, to ensure that families receive proper compensation. Yet again same problem, the process can drag on for years.

The lawyer’s uphill battle

The path to represent the victim’s family has practical hurdles. It takes months to trace ownership through offshore shell companies. Serving a cross-border notice requires understanding and compliance with the Hague Convention procedures or bilateral treaties.

Next comes jurisdiction. Charter agreements often come with arbitration clauses that scatter disputes among different jurisdictions, sometimes three or more.

The victim’s family finds themselves running from one place to another. Filing probate proceedings in one country, an insurance claim in another and a negligence suit in another.

This is like a legal marathon for them, draining both financially and emotionally.

Succession battles and the estate: death, wealth, and aviation disasters

A private plane carrying a high-net-worth individual (HNI) when crashes, then the tragedy rarely ends at the crash site. A lot happens when there is a sudden loss of a business leader or a public figure. Families shatter, empires destabilise, and a long legal dispute ensues.

History witnessed this with the sudden demise of Sanjay Gandhi in a plane crash that left not only a personal political vacuum but also reshaped the direction of Indian politics in 1980. A recent incident of the crash of a Gulfstream G-IVSP that killed Flow La Movie, a Puerto Rican music producer. This tragedy did not leave a grieving family but a rich estate, stretching across royalties, offshore assets, intellectual property and claims in multiple countries.

These assets that NHIs hold leave behind wealth scattered across bank accounts, private equity, offshore trusts, real estate and business ventures that span continents. Now, this situation in India is further complicated because of cultural and legal realities. Many family businesses still work on ‘handshake deals’ without any formal agreements and without a will and trust.

Role of Insurance Policies

The impact of these tragedies is financial as well. Everything like aviation liabilities policies, keyman-person insurance and personal life insurance comes into play after the accident. And when these insurance payouts into hundreds or even thousands of crores, they can either stabilise the family or turn into a long-lasting court battle.

A hidden tension comes to the surface when grief mixes with sudden liquidity. Insurance payouts can attract various people to fuel the power struggles, like business partners, distant relatives, and estranged spouses.

So, what we get here is that a private place crash tests the strength of wealth planning, family unity and legal safeguards. Hence, for HNIs, succession planning is not a luxury, but it is the only real defence against decades of disputes.

Insurance coverage and denial: the big money fight

Families naturally assume that insurance will ease at least a part of the financial blow. But in reality, the actual battle does not start in the court but with an insurer. They look for different possibilities to deny insurance payouts.

One of the most common grounds for denial is pilot error. Even a minor issue with licensing can be a ground for denial. For instance, if a pilot is flying at night and he lacks a valid night license, then the claim can be denied.

Maintenance is another big reason. If any scheduled inspection is skipped by any aircraft or uses a non-certified part then a ‘material non-disclosure clause’ is invoked by the insurer and then refuses to pay.

The international aspect makes the private aviation dispute more complex. For any Indian-origin victim, if his plane is registered in tax havens and insured by Bermuda, London or Singapore underwriters, this means spending a huge sum of money just to fight over jurisdiction even before the actual claim is heard.

Insurers play a long game. They are well aware that families are grieving and they can accept a fraction of the actual payout. That is why private aviation insurance disputes are not just about policy language, but about timing, strategy and sheer endurance. Those who go unprepared often end up with far less than what was promised by the insurers.

Product liability and defective aircraft claims

When a private plane crashes and there’s no clear evidence of pilot error or maintenance issues, focus shifts to the aircraft manufacturer and the possibility of a product defect. This opens the door to one of the most technical, expensive, and complicated types of litigation, i.e., aviation product liability.

On paper, the principle is simple. If a design flaw or manufacturing defect played a role in the crash, the manufacturer (or component supplier) can be held liable. In practice, proving that link is anything but simple.

Modern business jets are not built by a single company but by vast networks of suppliers scattered across multiple countries.

Tracing a fault in an altimeter, a hydraulic system, or a flight control module often requires access to proprietary data that manufacturers are reluctant to release without a court order.

Aircraft manufacturers routinely deploy forum non conveniens arguments, attempting to shift cases to jurisdictions with weaker product liability laws. Many contracts include limitations of liability or mandatory arbitration clauses buried deep in delivery agreements.

Plaintiffs who succeed usually do so in the US (particularly in states like California or Texas) or EU courts, which apply strict liability doctrines. However, securing jurisdiction in those courts often hinges on the aircraft’s point of manufacture or sale, not its crash location.

Regulatory investigations: how DGCA, AAIB, and global bodies respond

The sequence feels almost predictable when a private plane crashes. Rescue operations are finished by the first responders. Then the investigators reach the crash site.

But does this guarantee accountability or timely investigation?

Absolutely not. Private aviation in India operates under a weaker system. Investigation is often delayed, and reports are not transparent. The process in commercial aviation is completely different. Strict rules are to be followed by the agencies and protocols are time-tested. Reports prepared are detailed and transparent and this leads to strong safety measures.

Framework in India

India has two main authorities on paper:

Directorate General of Civil Aviation (DGCA)

DGCA oversees licensing, registration of aircraft and certification of airworthiness.

Aircraft Accident Investigation Bureau (AAIB)

AAIB comes into play when a plane crash occurs. This is responsible for investigating these crashes.

For private planes, jurisdictional overlaps and limited resources weaken the effect of these bodies. Specifically, if this aircraft is operating in India but is foreign-registered.

The problem here is that, even after a thorough investigation on the technical side, the findings are not admissible in the court. This makes the road to justice harder for the victim’s family.

The puzzle of insurance

Let’s see the case of New India Assurance Co. Ltd. vs. Janus Aviation Pvt. Ltd. (2024). The insurer’s appeal to wiggle out of the liability was rejected by the Bombay High Court. This case highlighted a pattern: to deny claims, insurers often rely on technical interpretations of the policy language, while the operators and families are left tangled in litigation. These disputes aren’t just about the contracts, but they go to the heart of the possibility of the existence of any remedy at all.

Cases that tell the story

Learjet 45 VT-DBL, Mumbai (2023)

Amid heavy rainfall, a Learjet 45 aircraft veered off the runway at Mumbai airport, leaving eight on-board people injured. The preliminary investigation held by AAIB pointed out the gaps in the qualifications of the crew and operational compliance. Even in high-end private aviation, the lapses in oversight cannot be isolated but systematic.

Cessna 152, Faizabad (2018)

A Cessna 152 aircraft, VT-PTD, was involved in a forced landing on the Saryu river bed in Faizabad. This incident revealed just how fragile safety systems can be at smaller operators and academics.

What is the common thread in these cases?

It is the lack of uniform, enforceable standards that match those applicable to commercial planes.

Transparency matters

AAIB does not reveal the report at a transparent level, with proper clarity and is often delayed. This is very different from the US National Transportation Safety Board (NTSB) or Australia’s ATSB.

Beechcraft B-200 King Air, Essendon, Australia (2017)

This was one interesting case in which an Indian-origin executive was killed. Australia’s ATSB not only identified the pilot’s error but also issued a public safety bulletin, recognised contributing and non-contributing factors and published the report transparently. It later even played a role in resolving civil and insurance claims.

The victim’s family in India faces bureaucratic roadblocks when trying to access the data of the black box, maintenance records or interim findings. Even when they use their Right to Information (RTI), key documents are denied on the pretext of national security, or if accepted, then they are shared in redacted form.

What do recent patterns in private plane crashes reveal?

Every private plane crash is a human tragedy. But if we look into the bigger picture, patterns begin to emerge. And these patterns expose the operational lapses and deep legal blind spots. These plain crashes are not some random events.

Taking the example of a crash of Wagner chief Yevgeny Prigozhin’s Embraer Legacy 600 in 2023. The headlines were dominated because of the political angle, but something different was noticed by the aviation lawyers. A complete lack of transparency around the history of the maintenance of the jet, crew vetting and basic security protocols. Much information was kept secret from the public by private ownership.

Another case was a Cessna citation in Virginia in 2023. This plane flew on autopilot and ran out of fuel midair. It crashed and killed all the passengers on board, including a senior executive’s child.

Initial theories pointed to cabin depressurisation. But the investigation revealed that the confidentiality clause between the servicing firm and the plane owner blocked access to critical data. The families had to fight just to access the evidence that explained their loss, before they could even think of compensation.

Three patterns stand out across these incidents:

Being registered under shell companies or trusts helps protect privacy and avoid taxes. But this makes it hard to set liability and ownership.
Maintenance, operations and crew training are often spread across multiple firms. Now, when something goes wrong, deciding accountability gets complicated, which further complicates the litigation.
Insurers often use technical language to delay and deny payouts.

These patterns show that the problem is not just negligence, but also the systematic gaps. The baseline of accountability is missing.

Ending note

Private aviation may provide freedom and luxury, but the legal aftermath after a crash tells a different story. Ownership is the major issue because it is often hidden behind offshore trusts. Contracts and waivers bury the liabilities. And, insurers try harder to deny payouts to the victim’s family.

Where in commercial aviation the process is quite transparent and provides statutory protections, families of the victims of private plane crashes are left to go through long battles for compensation.

Hence, reform is overdue. Extension of liability rules like the Montreal Convention to private aviation, enforcement of mandatory insurance with real audits, putting limitations on unfair waivers and putting accident reports transparently are the bare minimum.

The law must not fall when a private plane falls. Only commercial aviation must not have the privilege of accountability and oversight.

FAQs

What is the first legal step that families should take after a private plane crash?

After a crash, the families should get in touch with an experienced aviation lawyer. This should ideally be in every jurisdiction, including where it was registered, insured or operated. Preservation of evidence is also important, the chain of custody is maintained, and official accident reports are obtained without delay.

Can a foreign company be sued in India?

Yes, but it can be quite complicated because legal notices may need to be served and claims filed in the foreign jurisdiction where the company is registered. It’s usually better to start parallel proceedings in India to secure interim relief.

Can a private plane crash trigger criminal liability?

Criminal liability in a private plane crash is a rare scenario. Unless gross negligence, unauthorised maintenance, or falsified documents are proved by the investigator, no case crosses the threshold of criminal charges.

Do private plane passengers have any consumer rights?

No, the private plane passenger does not qualify as a ‘consumer’ under the Consumer Protection Act 2019 until they pay for their ticket directly. But, as an alternative, families may pursue remedies under tort or contract laws.

References:

Are small creditors losing out in insolvency cases? A look at Kalyani Transco Vs. BPSL (2025)

By

Anshi Mudgal

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September 2, 2025

0

Are Small Creditors Losing Out In Insolvency Cases? A Look At Kalyani Transco Vs. BPSL (2025) — Image Source - https://shorturl.at/Q5vbl

This article is written by Adv. Sohan Varghese Francis, Corporate & Civil lawyer and Founder of Juris Summit, a global legal consultancy helping startups, founders and businesses navigate complex laws with confidence. He holds 4+ years of experience in domestic practice and international collaborations. He specialises in structuring businesses, drafting airtight contracts, and ensuring cross-border compliance.

Table of Contents

To begin with

When we talk about corporate insolvency, the importance is generally given to large financial institutions as well as to the banks, whereas the small creditors are often neglected. The small creditors generally include vendors, suppliers or any service providers who at one time have significantly contributed to the operations and the growth of the business.

The Insolvency and Bankruptcy Code, 2016 (IBC), introduced creditor-driven insolvency resolution, aiming for faster resolutions and value maximisation. Yet in practice, it has created a clear disparity. Financial creditors enjoy priority, and operational creditors, especially the small ones, are left with little to nothing in resolution plans.

This gap is not only seen in the bare act and in documents, but it is also visible in the courtrooms, as well as in the resolution plans. In the most recent case of Kalyani Transco vs. Bhushan Power and Steel Ltd. (2025), this issue is in the spotlight. Although the judgment which was given has followed a proper procedure of the law but then it also gave rise to an important question, i.e., has the insolvency system of India created a group of small creditors who are recognised by law, but in practice are left behind and overlooked?

While we delve into the facts of the Kalyani Transco case, let us revisit the IBC’s structure and compare India’s approach with global standards. And to introspect whether it is time to rethink the treatment of the smallest players in the resolution process?

Operational creditors and their ordeal -the legal landscape

Under the IBC, not all creditors are treated equally. The Code institutionalised a hierarchy that rewards size and financial clout.

Operational creditors have certain rights available under IBC to representation and rights to appeal of this Corporate Insolvency Resolution Process. They can also initiate insolvency resolution u/s 8(1). But these provisions are not used and often fail to translate into real influence in resolution.

The Creditor Hierarchy under the IBC

When we talk about creditor hierarchy under IBC, then at the top there are the financial creditors who are usually considered as NBFCs, banks and bondholders. Under Section 30(4) of the IBC, CoC have the power they approve or reject the resolution plans, and such practices are often referred to as “commercial wisdom.”

Service providers, employees and suppliers are generally considered operational creditors. Operational creditors can file under Section 9 but generally lack CoC representation. Under Section 24(3)(c) of IBC, operational creditors are allowed to attend the meetings if their claims together make up more than 10% of the company’s total debt.

In the Swiss Ribbons Pvt. Ltd. v. Union of India (2019), the Supreme Court observed that, discriminating between financial and operational creditors under the IBC is constitutionally valid. The Court felt that financial creditors are in a better position to assess viability and restructuring proposals.

The Supreme Court in Jaypee Infratech Ltd. v. Axis Bank Ltd. (2020) further reaffirmed this design by recognising that operational creditors are differently placed, and therefore their exclusion from decision-making cannot be faulted as unconstitutional, provided minimum protections under Section 30(2)(b) are met.

The legal disadvantage of small creditors

Despite being stakeholders in the operations of the debtor, the small creditors are faced with:

No voting rights on resolution plans.
Minimal recoveries, sometimes just pennies on the rupee.
Communications on proceedings, if any, received late.
No representation in the CoC, unless there are exceptional circumstances.

Section 24(4) IBC clarifies that while directors, partners, and representatives of operational creditors can attend meetings of the Committee of Creditors (CoC), they do not have the right to vote. Their presence is permitted, and they can participate in discussions, but the final decisions are made by the financial creditors who hold voting rights based on their financial debts

In Essar Steel, 2019, operational creditors with the claims of ₹4,976 crore were paid just ₹214 crore, about 4.3% as against a 92% recovery paid to secured financial creditors. The Supreme Court went on to uphold the “commercial wisdom” of the CoC, which implies that once the legal thresholds are met, the courts have no business interfering.

The Court in Essar Steel also clarified that “fair and equitable treatment” under Section 30(2)(b) does not mean equality of outcome but only that operational creditors must receive at least the liquidation value due to them under Section 53. This principle has since been repeatedly applied, including in Kalyani Transco v. Bhushan Power & Steel Ltd. (2025), where the Supreme Court reiterated that operational creditors cannot demand parity with financial creditors so long as statutory minima are met.

This raises another question: Is “commercial wisdom” fast becoming a cloak to conceal inequity? Yet, it is often small suppliers that understand how the business runs on the ground, an experience that should be leveraged.

What happened in Kalyani Transco vs. BPSL (2025)?

There was dissatisfaction among the small players in the insolvency ecosystem in 2025. Kalyani Transco Private Ltd., a minor operational creditor, filed a petition against the resolution plan that was approved for Bhushan Power and Steel Ltd.

It was a direct appeal that the Apex Court was dealing with. It was from the NCLAT’s dismissal of Kalyani Transco’s objections. It wasn’t just paperwork or procedure anymore. The judges were willing to re-examine the meaning of “fair treatment” under the IBC, especially for the operational creditors.

A brief overview of the case

Kalyani Transco had supplied engineering components to BPSL and claimed a small operational debt. The resolution plan was approved by the CoC, which offered negligible recovery, reportedly less than 1% of the claimed amount to Kalyani Transco, while sizable payouts were made to the secured financial creditors.

Kalyani Transco went to the NCLAT, arguing that the resolution plan was not fair and equitable within the purview of Section 30(2)(e) of IBC, which demands that the plan must be in compliance with legal provisions. Kalyani argued that even though the amount claimed might have been meagre, the claim needed to be respected in the process.

The Supreme Court, however, emphasised that while the IBC does not guarantee equal recovery, it does require non-discriminatory treatment. The Court highlighted that operational creditors cannot be reduced to “illusory” recoveries, even if their claims are comparatively small.

Key issues raised in the case

Was the resolution plan discriminatory?

The operational creditor alleged that the plan provided vastly disproportionate treatment between financial and operational creditors, violating the principles of equitable distribution and natural justice.

Does the “commercial wisdom” doctrine override fairness?

The CoC’s decision was shielded by the now-familiar judicial doctrine of non-interference, that courts should not question the financial wisdom of the creditors. But should this doctrine apply even when the result seems legally sound yet ethically questionable? Since the CoC’s decision was protected by the doctrine of commercial wisdom (as reaffirmed in K. Sashidhar v. Indian Overseas Bank, (2019), the question arose: Should courts step in where outcomes appear legally sound but substantively inequitable?

What is “fair and equitable” under the IBC?

The court was invited to reconsider whether procedural compliance (like giving a creditor “something”) is enough, or whether substance and fairness should guide the outcome.

What were the key findings?

The Kalyani Transco vs. BPSL (2025) decision was not a legal blockbuster, but its subtle affirmations of the status quo have deep implications. While the judgment was consistent with past rulings, it also underlined a growing discontent: that predictability in law is not always the same as fairness in justice.

Courts reaffirmed the supremacy of commercial wisdom

The tribunal reiterated that it shall not interfere in the CoC decisions, unless the plan contravenes explicit provisions of the IBC or is patently arbitrary. Thus, the Supreme Court, in essence, treated the Essar Steel judgment as the touchstone precedent.

The Court specifically observed that the mandate of Sections 30(4) and 31 of the IBC leaves no room for judicial substitution of CoC’s decision with what the court “thinks” is a better distribution. In doing so, it directly rejected Kalyani Transco’s plea that commercial wisdom must be subjected to a fairness review beyond legality.

Procedural compliance was deemed sufficient

The NCLAT maintained that merely differential treatment of creditors cannot be legally infringing, so long as operational creditors are provided with a payment that is not less than the liquidation value and the plan adheres to Section 53.

The court refused to impose substantive fairness standards on a process that is meant to be fast, predictable, and creditor-driven. It clarified that “procedural fairness” does not extend to questioning the rationale of CoC’s distribution model so long as the minimum legal floor is met.

It refused to recognise a substantive right of operational creditors to demand parity with financial creditors.

“Fairness” under IBC remains procedural, not moral

The Court nodded silently to one great truth in the matter: the IBC has been primarily concerned with legality rather than equity. The resolution plan might have been a technically acceptable one for BPSL, but to Kalyani Transco, it was still a legal eviction from justice.

In fact, the bench underscored that fairness must be seen in the “systemic context” of speedy resolution and revival of the corporate debtor, not in the “individualised sense” of every creditor’s satisfaction.

The “value maximisation” logic trumps equitable distribution

The court noted that the goal of the resolution process is value maximisation, not redistribution.

It reaffirmed that “maximisation of value of assets” under Section 30(2)(b) is the guiding star of IBC, and redistribution of value to create substantive equality was never envisaged.

In rejecting Kalyani Transco’s claims, the Court maintained that operational creditors’ remedy lies in contract law or arbitration, not in stretching insolvency principles beyond their legislative design.

Critical reflections on the Kalyani Transco ruling

Legal judgments often walk a tightrope between doctrine and justice. In Kalyani Transco vs. BPSL, the rope was steady, the doctrine held. But from where small creditors stood, it wasn’t hard to feel like they had fallen off the edge. This section unpacks the deeper implications of the ruling, not just in black-letter law, but in how the insolvency ecosystem is evolving and for whom it’s evolving, as most operational creditors are unsecured.

Legally sound, morally lopsided?

The judgment followed procedure and precedent but left small creditors like Kalyani Transco with negligible recoveries despite delivering goods or services as per the rules.

In light of the Supreme Court’s observation in this case that the differential treatment between financial and operational creditors was not unconstitutional per se, as the legislative intent of the IBC itself was to prioritise resolution over liquidation. Yet, the absence of safeguards for small creditors raises questions about whether the constitutional principle of equality before the law is being indirectly diluted.

The commercial wisdom doctrine: efficient or evasive?

The situation was stuck in its familiar position. The Court cannot interfere with the actual decision of the CoC, but can review if the process was followed. Still, no legal requirement exists that can force the CoC to record and address the concerns of operational creditors. At best, these things are merely acknowledged on paper, and nothing more.

And this is the actual problem. At this point, the doctrine of commercial wisdom starts looking less like wisdom and more like exclusion.

A two-tier justice system under the IBC?

The IBC operates with a built-in hierarchy of justice:

Tier 1: Secured financial creditors — recoveries and influence.
Tier 2: Operational creditors — minimal returns, no say.

The Kalyani Transco ruling arguably cements this two-tier structure by reiterating that operational creditors cannot claim parity with financial creditors in distributions under a resolution plan. While this provides certainty for lenders and investors, it entrenches a systemic imbalance that leaves suppliers, employees, and MSMEs perennially vulnerable. Unless legislative amendments create a more balanced recovery framework, the IBC risks alienating precisely those stakeholders it sought to protect from the earlier regime of endless litigation and non-recovery.

Rethinking equity in resolution

After analysing the Kalyani Transco ruling and its implications, the elephant in the courtroom is clear: the IBC may be efficient, but is it equitable?

Should the IBC introduce a minimum payout threshold?

Small creditors could be guaranteed a modest minimum recovery, similar to priority sector norms in banking.

Such a floor could be modest, say 5% or even 1% of admitted claims, but it would signal a systemic commitment to fairness and reduce litigation by aggrieved claimants.

Should small creditors be given partial voting rights?

Until now, no operational creditor has had a say in the committee unless they form 10% or more of the total debt is a rare situation. Hence, there is an inherent representation deficit.

Assigning partial or fractional voting rights according to the size of claims (let’s say a combined 10% voting weight to operational creditors) will perhaps go a long way in balancing fast and efficient resolutions with a basic sense of inclusion.

What can India learn from other countries?

To balance the scale, the legal system in many parts of the world sometimes tries subtly and sometimes directly. Starting from the UK, for instance, trade creditors are actually permitted representation through different committees. Taking another example, in the US, unsecured creditors can participate in the creditors committee, and can participate and negotiate restructuring terms. In fact, Singapore also permits representation of small creditors.

Comparing this with India, small creditors are recognised on paper. But in practice, their role is little more than symbolic. Their claims are recognised by the law, but when it comes to decision-making, they are sidelined.

Final takeaway

In the case of Kalyani Trancso vs BPSL, the insolvency law was not changed, but they have spotlighted some important points, or we can say on some truths that everyone should know, such as that the law and the procedure are being followed, but then also the fairness is still missing. This case also shows how the gap is increasing between the strict legal procedure and the actual justice that is given under IBC.

Now the question is whether the judgment that was given was correct and legally sound? So the answer to this question is yes, but not only that; this judgment also indirectly urges the urgent need to add corrective measures in the IBC, which is far more than the mechanical application.

The system, which is present, gives more power to the financial creditors to make decisions, and on the other hand, the operational creditors are mostly neglected. The main question which have to be answered and focused on is whether the law only needs to focus on the efficiency part or is this high time to make things fairer for all those who do not have a voice in the process?

Frequently asked questions (FAQs)

Do small creditors have the right to challenge a resolution plan under the IBC?

Yes, but with limited success. Courts usually defer to the “commercial wisdom” of the CoC unless there’s a clear legal violation or fraud.

Can Operational Creditors be included in the Committee of Creditors (CoC)?

No, Operational creditors cannot be included in the Committee of Creditors (CoC) under the IBC. But, if the combined dues of the operational creditors are 10% or more than that of the total debt, then they are allowed to attend the CoC meetings, but do not have any voting rights.

What are the remedies available to the small creditors when they receive a negligible or zero payout?

The small creditors should be paid at least the liquidation value, and this is also given under Section 30(2)(b) of IBC. On the other hand, if the due process is followed and all the statutory requirements are met, then the courts uphold such a resolution or plans even after the negligible payouts.

Is it possible for the suppliers to refuse to deal with all those companies that are under the proceedings regarding insolvency?

Yes, the suppliers can decline or can refuse for any new transaction. However, according to Section 14, which is related to the moratorium provision under the IBC, suppliers need to continue with the existing contracts.