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| Legal Brief |
| Newsletter by Mansukhlal Hiralal & Co. |
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| INSIDE THE LEGAL BRIEF |
- Feature Insight
- Brief Updates
- Success Highlights
- Spotlight
- Ask MHCO
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MHCO Legal Brief :
Insights, Updates, and
Expertise Unveiled |
| Stay ahead with MHCO’s latest legal
insights, success stories, and expert
guidance on emerging laws and industry
developments. |
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| Feature Insight |
| Inside the Legal
Landscape |
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Legal Insights - Promotion and Regulation of
Online Gaming Act, 2025
On 22 August 2025, the Central Government
enacted the Promotion and Regulation of Online
Gaming Act, 2025 (“Gaming Act”). The Bill was
passed by Parliament with remarkable speed,
within seven minutes in the Lok Sabha and twentysix
minutes in the Rajya Sabha, before receiving
Presidential assent the following day. The Gaming
Act provides for the promotion of e-sports and
online social games, while prohibiting online
money games involving stakes or wagers for
monetary gain. It also establishes a regulatory
authority to oversee the sector and sets out
stringent penalties for violations.
Recognition and Promotion of E-Sports and
Social Games
The Gaming Act empowers the Central
Government to formally recognise e-sports as a
legitimate competitive sport. It may issue
guidelines, establish training academies, provide
incentives, and coordinate with States to promote
such activities. Online social games designed for
entertainment or educational purposes and not
involving monetary stakes are also to be facilitated
through registration mechanisms, awareness
initiatives, and institutional support programmes.
Definitions under the Act
The Act introduces the following key definitions:- Online game: any game offered on a digital
platform.
- E-sport: skill-based competitive events without
wagering.
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Did You Know?
A Will can be handwritten or
typed, signed by you and
attested by two nonbeneficiary
witnesses, and it’s
legally valid without
registration. |
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Did You Know?
The DPDP Act, 2023, introduces
the concept of a "Data
Fiduciary", making entities
accountable for collecting and
processing personal data only
for lawful purposes. |
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- Online social game: non-wagering,
entertainment, or skill-development based
online games.
- Online money game: any game involving
fees, deposits, or stakes in expectation of
monetary or equivalent returns, excluding esports.
Recognition and Promotion of E-Sports and
Social Games
The Gaming Act empowers the Central
Government to recognise e-sports as a
legitimate competitive sport through guidelines,
training academies, incentives, and coordination
with States. Both e-sports and online social
games are subject to registration with the
designated Authority, which may impose
technical and playerprotection standards.
Online social games for entertainment or
educational purposes without monetary stakes
will be promoted through registration
mechanisms, awareness initiatives, and
institutional support.
Prohibition of Online Money Games
The Gaming Act imposes a complete prohibition
on offering, operating, advertising, or
participating in online money games, including
those offered from foreign jurisdictions. Banks
and financial institutions are also prohibited
from facilitating related transactions. |
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Penalties for violations:
- Up to three years’ imprisonment and fines
up to ₹1 crore for offering online money
games or facilitating funds for online money
games.
- Up to two years’ imprisonment and fines up
to ₹50 lakh for advertising online money
games.
- Enhanced punishments for repeat offences.
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Non-compliance with directions may lead to penalties up to
₹10 lakh, suspension, or cancellation of registration.
Offences under the prohibition of online money games are
cognizable and non-bailable, and company officers may also
be held liable. The Act further empowers investigation,
search, and seizure (including of digital resources), and
blocking of non-compliant services.
Authority and Regulatory Oversight
The Central Government may establish or designate an
Authority to classify games, register permissible ones,
address complaints, and issue directions.
MHCO Comment
The Gaming Act provides a comprehensive framework for
the regulation of online gaming in India. It balances the
encouragement of e-sports and social games with stringent
restrictions on money-based gaming. However, the Gaming
Act has already had a disruptive impact on the industry as
leading platforms such as WinZO, Dream11, MPL, and
PokerBaazi have already suspended their real-money
offerings immediately following the enactment of the said
Act, in a sector employing over 20 million people. By
effectively shutting down the largest revenue-generating
segment of the online gaming industry, the Gaming Act is
eroding the growth in the sector. We believe that the
Central Government ought to have issued market policy
consultation papers and taken public comments before
drastically resorting to passing the Gaming Act in such a
hasty manner. |
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Did You Know?
Under Section 238 of the Insolvency and Bankruptcy Code (IBC), the provisions of
the Code shall have an overriding effect “notwithstanding anything inconsistent”
in any other law. This “non-obstante” provision means the IBC will prevail over
laws such as Companies Act, SARFAESI, and even state legislation, unless
specifically excluded. |
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| Brief
Updates |
| Capturing the
fast paced
changes |
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REAL ESTATE UPDATE:
Maintenance Levy In Condomiums
The Bombay High Court, in Sachin Malpani and
Ors. vs. Nilam Patil and Ors., upheld a directive
for a condominium to charge maintenance fees
based on each owner's undivided share rather
than a flat, equal rate. The court confirmed that
the Deputy Registrar of Co-operative Societies
had the proper jurisdiction to issue the order. It
held that the Maharashtra Apartment Ownership
Act, 1970, and the condominium's Deed of
Declaration require that maintenance expenses
be proportionate to each owner's interest, a
statutory requirement that overrides any past
practices or resolutions.
Read More |
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| LITIGATION UPDATE: |
Individuals Liability in Case of One
Person Company
On 3 July 2025, the Bombay High Court
set aside an arbitral tribunal’s directions
imposing personal liability on the sole
shareholder of a One Person Company
(OPC), affirming that an OPC is a distinct
legal entity with limited liability under the
Companies Act, 2013. While the Court
upheld interim measures against the
company, including depositing funds and
disclosing assets, it ruled that extending
such obligations to the shareholder
violated the statutory OPC framework.
The judgment reinforces the protection
of personal assets for OPC owners unless
specific contractual or factual grounds
warrant liability, offering clarity and
assurance to entrepreneurs using the
OPC model.
Read More |
| COMPANY LAW UPDATE: |
Additional Compliance Requirement
for Share Transfer in Private Limited
Companies
NSDL’s Circular No.
NSDL/POLICY/2025/0071 (3 June 2025)
tightens off-market share transfers in
Indian private companies. Depository
Participants must now secure, in addition
to the usual Delivery Instruction Slip, a
company-issued confirmation letter
affirming that each demat transfer
complies with Section 2(68) of the
Companies Act 2013 and the firm’s
Articles of Association.
Read More
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| Success
Highlight |
| deals or judgements
that MHCO procured |
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Mansukhlal Hiralal & Co. effectively represented TRAVEL BLUE PRODUCTS
INDIA PRIVATE LIMITED and Travel Blue before the Bombay High Court,
securing interim reliefs against Miniso for design infringement and passingoff
of Travel Blue’s distinctive ‘Tranquillity Neck Pillow’.
Congratulations to our Partner Bhushan Shah, Associate Partner Meeta Kadhi,
and Associate Abhishek Nair for leading this significant win. |
| Spotlight |
| In the
Limelight. |
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TEAM MHCO TOOK THE GAME OFF THE FIELD AND ONTO THE TURF
Bringing together colleagues, kids and lots of good energy for a funfilled
football evening. Moments like these strengthen how we show
up for each other on big matters and busy days.
Fitness, laughter and a team that backs each other- on and off the
field. |
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Ask Mansukhlal
Hiralal & Co. |
Breaking
down complex
legal issues for you |
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In this edition, we have Ms. Purvi Asher,
Partner at Mansukhlal Hiralal & Co.
addressing a query on Wills:
“If a will excludes a lawful spouse without
explaining why, can courts treat that as a
“suspicious circumstance” and invalidate
the will?”
Yes. In Gurdial Singh (Deceased) through LR
v. Jagir Kaur (Deceased) & Anr. (17 July 2025),
the Supreme Court upheld the High Court’s
view that omitting the spouse’s status and
failing to give reasons for her disinheritance
were suspicious circumstances the
propounder failed to dispel. Registration of
the will and attesting-witness testimony were
not enough; the onus remained on the
propounder to satisfy Section 63 of the
Succession Act and Section 68 of the
Evidence Act and to remove the suspicion.
Result: the will was declared invalid and the
spouse’s title was affirmed. For testators and
drafters, clearly recording relationships and
reasoned departures from natural
succession—and preserving corroborative
material—reduces litigation risk. |
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Shreya Dalal
Associate Partner |
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You can send your legal queries to ask@mhcolaw.com for expert advice in the next newsletter! |
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| We sincerely thank our clients, colleagues,
and partners for their ongoing support. Your
trust fuels our growth, and together, we look
forward to reaching new heights. |
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This newsletter has been published on 03 Sep 2025.
