LATEST IMPORTANT LEGAL UPDATES – JULY 2025

Here’s your essential roundup of corporate, insolvency, and regulatory law developments making headlines:

🏛️ 1. MCA Fully Migrates to V3 E-Filing Portal
🗓️ Effective July 14, 2025
The Ministry of Corporate Affairs (MCA) has launched the final batch of 38 e-forms including:

📄 13 Annual Filing Forms

📊 6 Audit/Cost Audit Forms

✅ This marks the complete shift from the MCA V2 portal to MCA V3, rendering Version 2 obsolete.

Key Implications:

All corporate filings must now be done via MCA V3

Stakeholders must update their processes, logins, and systems accordingly

Enhances data standardization, automation & ease of compliance

⚖️ 2. PMLA Prevails Over IBC in Proceeds of Crime Cases – NCLAT
Key Ruling: The Insolvency & Bankruptcy Code (IBC) does not override the Prevention of Money Laundering Act (PMLA).

Case Insight:

Under Section 14 of IBC, a moratorium is placed on asset recovery during insolvency.

However, if an asset is identified as “proceeds of crime” and is already attached under PMLA, it cannot be treated as part of the resolution estate.

🧑‍⚖️ NCLAT Held:
Such properties remain outside the IBC process, reaffirming that IBC cannot undo penal law enforcement.

🔄 3. CIRP Terminated – Corporate Debtor Able to Fully Repay
Case: Rajasthan Land Holdings Ltd. | NCLAT Ruling

📌 Background:
Corporate Insolvency Resolution Process (CIRP) had been triggered. However, the corporate debtor had sufficient funds to fully settle all admitted claims of the CoC.

🧑‍⚖️ NCLAT Ruling:

CIRP terminated as its continuation was unnecessary

Emphasized that IBC’s objective is resolution—not process for process’ sake

Reaffirmed that debtors able to repay fully can exit CIRP appropriately

✅ Key Takeaways for Legal & Compliance Professionals:
🔹 MCA V3 Portal: Be fully prepared for 100% transition; ensure filings are V3-compliant from July 14 onward
🔹 IBC vs PMLA: PMLA holds primacy where “proceeds of crime” are involved—resolution professionals must tread carefully
🔹 CIRP Termination: IBC isn’t a punitive tool; if debts are repaid, insolvency resolution isn't necessary