INDIA Trends and Developments Contributed by: Priyank Ladoia, Raghav Seth, Tanmay Sharma and Arjun Narang, AZB & Partners
Conclusion India’s dual strategy of decriminalising minor offenc - es while imposing strict liability in emerging digital domains reflects a nuanced regulatory philosophy. Decriminalisation under the JV Act and proposed JV2 reduces procedural burdens and enhances predict - ability, fostering a more business-friendly environ - ment. Simultaneously, new laws in the digital space ensure accountability in high-risk sectors. Retrospec - tive application of beneficial amendments could fur - ther amplify the impact, delivering meaningful relief to businesses and individuals, reducing court pendency, and advancing a trust-based governance model.
without their knowledge or despite their best efforts to prevent it. The Online Gaming Act represents a departure from the decriminalisation trend, introducing stringent crim - inal sanctions in high-risk digital sectors. Not only has the act of offering services and running platforms for Online Money Games become punishable with impris - onment, but even any involvement with the advertising or transfer of funds can invite penal sanctions. The Online Gaming Act further tightens financial integrity by mandating full adherence to anti-money laundering controls, including KYC and timely reporting of sus - picious activity. Crucially, these obligations apply to game operators as well as to the wider ecosystem and impose a criminal sanction of imprisonment on adver - tisers, app stores, payment intermediaries, media outlets, banks, and financial institutions involved in promoting or facilitating Online Money Games. Unsurprisingly, the legality of the Online Gaming Act was challenged in three High Courts. The Supreme Court has consolidated the challenges and decided to take up the challenges itself. The constitutionality of the Online Gaming Act is currently under review by the Supreme Court, which will determine whether it is upheld, modified, or struck down.
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