Employment Newsletter (July-August 2026)

1. MoLE notifies the Employees’ Enrolment Campaign, 2026, and urges employers to utilise it

The Ministry of Labour and Employment (“MoLE”) notified the Employees’ Enrolment Campaign, 2026 (“EEC 2026”) on June 29, 2026, under the Code on Social Security, 2020 (“SS Code”). The Employees’ Provident Fund Organisation (“EPFO”) thereafter issued an implementation circular dated July 8, 2026, summarising the salient features of EEC 2026, which are as follows:

1. The campaign commenced on July 1, 2026, and will continue till October 31, 2026.
2. It provides a special, one-time window for employers to voluntarily enrol eligible employees who remained outside EPF coverage during the period April 1, 2009, to March 31, 2026, and to regularise past non-compliance, provided the employee is alive and continuing in employment with the establishment on the date of declaration.
3. The campaign applies to all establishments, irrespective of their existing coverage status. Employers not previously covered under the Employees' Provident Fund Scheme, 2026 (“EPF Scheme 2026”) may also apply for coverage and simultaneously declare and enrol employees who joined during the specified period.
4. Employers must generate a Face Authentication-based Universal Account Number through the UMANG App for each declared employee, and remit contributions through the Electronic Challan-cum-Return. This is a mandatory condition for availing the benefits of EEC 2026.
5. A lump sum damage of INR 100 per defaulting establishment (rather than the ordinary graduated rate of damages) will be treated as sufficient compliance across the three schemes notified under the SS Code, i.e., EPF Scheme, 2026, the Employee Pension Scheme, 2026 (“EPS, 2026”), and the Employees' Deposit-Linked Insurance Scheme, 2026.
6. The employees’ share of contribution for the declared period stands waived, where it was not already deducted by the employer at the relevant time. However, if such amounts were deducted by the employer and not deposited, the same should be deposited. 

By a press release dated August 22, 2026, EPFO reiterated that the EEC 2026 is intended to extend the benefits of provident fund, pension and insurance to workers who would otherwise remain outside the statutory social security net, and urged employers to review their employment and wage records to identify eligible employees before the window closes. 

2. EPFO launches VISHWAS, 2026, for settlement of long-pending EPF damages disputes

On June 29, 2026 (issued as part of the EPF Scheme, 2026), the Central Government notified VISHWAS, 2026 (“VISHWAS”), a one-time scheme for amicable settlement of disputes relating to levy of damages under Section 14B of the erstwhile Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (“EPF Act”) or Section 128 of the SS Code. The EPFO also issued a compliance circular dated July 9, 2026, addressed to its Zonal and Regional Offices, setting out the operational framework of the VISHWAS scheme. The key features of the VISHWAS Scheme are as follows:

1. VISHWAS is effective from June 29, 2026, and will remain in force for six months, i.e., up to December 28, 2026.
2. VISHWAS applies to four categories of cases — (a) ongoing litigation, where an order under Section 14B/128 has been issued and is under dispute before any judicial forum; (b) orders have been issued and is not disputed and where the levied amount remains unpaid or only partially paid; (c) pre-adjudication cases where a show-cause notice has been issued but no final order has yet been passed; and (d) pre-adjudication cases where no show-cause notice has yet been issued.
3. Notwithstanding the rate of damages otherwise applicable, for the period of default prior to June 14, 2024, the rate under VISHWAS is fixed at 0.25% per month (default up to 2 months), 0.50% per month (default of more than 2 months but less than 4 months), and 1.00% per month (default beyond 4 months) — a sharp reduction from the the ordinary damages structure, under which rates ranged from 5%–25% per annum for defaults between 2008 and June 13, 2024.
4. While there is a reduction in the rate of the damages, the entire interest payable under Section 7Q of the EPF Act or Section 127 of the SS Code, corresponding to the period of default, must be remitted in full before an application is submitted. 
5. The employer must also furnish a formal undertaking that no further appeal will be filed before any judicial or quasi-judicial forum once the dispute is settled and abated.
6. The settlement process is through the EPFO Employer Portal where the employer concerned must first clear outstanding interest, then select the applicable category, upload documents, and complete digital authentication, following which the system auto-calculates the revised penalty. Employers are then given a 15-day payment window for payment of damages (extendable by a further 15 days), after which EPFO issues a digitally signed Settlement Certificate and the related court or tribunal proceedings stand closed. 
7. Where an amount already remitted towards damages in part exceeds the revised damages computed under VISHWAS, no refund is admissible, and the excess cannot be adjusted against any other order or notice. Where the amount remitted is less, the establishment must remit the shortfall. 
8. VISHWAS does not apply where damages have already been fully recovered, or where the case involves fraud, misappropriation or deliberate falsification of records, or where disputed interest has not been fully remitted.

By a press release dated September 3, 2026, EPFO noted that the Bombay High Court, the Madras High Court, and the Kerala High Court have also directed employers to apply under VISHWAS and disposed of the related tribunal and writ proceedings accordingly 

3. Amnesty provisions introduced for retrospective regularisation of exempt status of Provident Fund Trusts

The Amnesty provisions were introduced as a transitional, one-time measure — as part of the EPF Scheme 2026 notified on June 29, 2026 — for regularisation of the exemption status of Provident Fund Trusts ("PF Trusts") that are recognised under the Income Tax Act, 1961, but do not hold a formal exemption order under Section 17 of the EPF Act (now Section 143 of the SS Code).

The operational guidelines for availing the Amnesty, including the manner of application and procedural requirements, were issued vide a detailed circular dated July 11, 2026. Key aspects include:

1. The Amnesty provisions are valid for six months from the date of notification, i.e., up to December 28, 2026.
2. Besides retrospective regularisation of exemption status, eligible PF Trusts are granted a waiver of certain conditions otherwise applicable under the SS Code, including the minimum employee headcount, minimum corpus size, and the requirement of 3 years’ continuous compliance. 
3. Regularisation is initiated by the Provident Fund Trust filing an application in the prescribed format with the jurisdictional EPFO Regional/District Office, accompanied by CA-audited Trust accounts, the list of covered employees, and a statement of investments since the Trust's inception. EPFO thereafter conducts a Compliance Audit and a Special Audit (to be completed within three months, at the establishment's cost), issues a public notice inviting objections from affected persons, and, on satisfactory resolution of the audit findings and objections, forwards the case with its recommendation through the Zonal Office to the Central Board of Trustees. Exemption is then granted retrospectively — from the Trust's inception up to the applicable cut-off date — by way of a final order of the Central/State Government, as applicable, to be issued, to the extent possible, within three months of the Board's recommendation.
4. Following regularisation on a retrospective basis, an establishment may elect, going forward, to comply either as an exempt establishment (continuing to manage its own PF Trust) or as an unexempt establishment (transitioning to EPFO-administered coverage).

4. ESIC issues Standard Operating Procedure for compounding of offences under Section 138 of the SS Code

The Employees’ State Insurance Corporation issued a Standard Operating Procedure (“SOP”) in August 2026 for compounding of offences under the SS Code. The SOP applies to all offences compoundable under Section 138(1) of the SS Code. This includes offences such as failure to pay the employer's contribution otherwise than by way of deduction from an employee's wages, unauthorised deduction or attempted deduction of the employer's contribution from an employee's wages, etc. Key features of the SOP are as follows:

1. i. The Compounding Officer must examine whether an offence is compoundable and issue the Compounding Notice (Parts I and II of Form-XXIV) electronically.
2. ii. The person noticed may apply in Part III of Form-XXIV and deposit the compounding amount electronically within 15 days of receipt of the notice. 
3. iii. On receipt of the amount, the Compounding Officer must issue a Composition Certificate (Part IV of Form-XXIV) within 10 days of such receipt. Upon issuance of the Composition Certificate, the proceedings stand closed. 
4. iv. Additionally, where compounding takes place before institution of prosecution, no prosecution will thereafter be instituted in respect of the compounded offence; while, where it takes place after prosecution has already been instituted, the compounding is brought to the notice of the court and the accused stands discharged.
5. v. If the amount is not paid within the prescribed time, prosecution is to be initiated 1 month after the expiry of such time.
6. vi. Only first-time offences are compoundable. The compounding amount is fixed at half of the maximum fine (for offences punishable with fine only) or three-fourths of the maximum fine (for offences punishable with imprisonment of up to 1 year together with fine). 

Compounding is not available for an offence committed a second time, or thereafter, within 3 years of an earlier compounding or conviction for a similar offence, and any person who fails to comply with a compounding order is additionally liable to pay 20% of the maximum fine over and above the fine itself.

5. Central Government notifies 12% EPF contribution rate and specifies exempted establishments

By a notification dated July 1, 2026, the Central Government has notified 12% as the rate of contribution to be paid by the employer and employees of every covered establishment under the EPF Scheme, 2026. The notification is deemed to have come into force from November 21, 2025.

The 12% rate does not apply to certain notified establishments. These are: (i) establishments for which a resolution plan or repayment plan has been approved by the Adjudicating Authority under the Insolvency and Bankruptcy Code, 2016; and (ii) establishments in the jute, beedi, brick and guar gum industries, and the coir industry (other than the spinning sector). The applicable rate for such establishments is 10%, in line with the previous law.

6. Central Government notifies employer’s 8.33% contribution rate to the EPS, 2026

By a notification dated July 1, 2026, the Central Government notified 8.33% of wages as the rate of contribution payable every month by the employer to the Pension Fund under the EPS, 2026, with effect from its date of commencement, i.e., June 29, 2026. This notification is without prejudice to the Central Government's earlier notification, dated May 3, 2023. 

The notification dated May 3, 2023, pursuant to the Supreme Court's judgment on the higher pension option under the erstwhile Employees' Pension Scheme, 1995, separately fixed the employer's contribution at 9.49% (an increase of 1.16% over the standard rate) on wages exceeding INR 15,000 per month, for employers and employees who exercised the joint option for higher pension under the erstwhile pension scheme. 

7. Central Government notifies the bonus eligibility wage ceiling and wage ceiling for calculation of bonus

On August 25, 2026, the Central Government fixed the wage ceilings applicable for payment of statutory bonus under the Code on Wages, 2019 (“Wage Code”). Every employee drawing wages not exceeding INR 21,000 per month is eligible to be paid a statutory bonus.

Where an eligible employee’s wage as defined under the Wage Code exceeds INR 7,000 per month, the bonus payable shall be calculated as if the wage were INR 7,000 per month, or the minimum wage fixed by the Central Government, whichever is higher. 

This will be deemed to come into force from November 21, 2025. These thresholds mirror the eligibility and calculation ceilings that already applied under the erstwhile Payment of Bonus Act, 1965.

8. The Ministry of Commerce and Industry notified the prohibition on the import of goods produced using forced labour

On July 13, 2026, the Ministry of Commerce and Industry inserted a provision in the Foreign Trade Policy, 2023 prohibiting the import of goods produced or manufactured, wholly or partly, using forced labour. This will come into effect 30 days after the publication in the official gazette. The newly inserted para essentially empowers the Central Government to prohibit, by notification, the import of goods produced or manufactured (wholly or partly) using forced labour. 

Forced labour is defined to mean all work or service which is exacted from any person under the threat of penalty and for which the said person has not offered themselves voluntarily. 

It is important to also note that the procedure for conducting an enquiry into the use of forced labour by the Director General of Foreign Trade will be as prescribed in the Handbook of Procedures, 2023, issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, under the Foreign Trade Policy, 2023.

1. Labour Codes: Development and where things stand

2. Karnataka Government directs District Authorities to ensure constitution of Internal Committees

On August 11, 2026, the Government of Karnataka issued a direction to the Deputy Commissioners, acting as District Nodal Officers, to ensure that Internal Committees are constituted in government and private organisations having more than 10 employees and are registered on the SHE-Box portal.

The Deputy Commissioners have been directed to follow up with the concerned organisations, complete the process within 1 month and submit a comprehensive report on the action taken to the Government.

While the direction is addressed to the Deputy Commissioners and not directly to employers, employers in Karnataka with more than 10 employees should ensure that their Internal Committee has been duly constituted and that the relevant details are registered on the SHE-Box portal. The Government's direction indicates increased administrative follow-up and verification of compliance with these requirements.

3. Maharashtra Government introduces Gig and Platform (Online) Workers Rights and Protection Bill, 2026

On July 3, 2026, the Maharashtra Legislative Assembly introduced the Maharashtra Gig and Platform (Online) Workers Rights and Protection Bill, 2026 (“Mah Gig Workers Bill”).

The key aspects of the Mah Gig workers Bill are: 

1. Applicability: The Mah Gig Workers Bill applies to gig and platform workers engaged through online platforms, including delivery partners, ride-hailing drivers and service providers working through digital platforms.
2. Rights of gig and platform workers: The Mah Gig Workers Bill provides that every registered gig and platform worker would have the right to fair wages and timely payment thereof and would be included in social security schemes approved by the State Government. It also states that companies would not be permitted to block worker IDs, impose fines or reduce incentives without due process and prior notice. Further, the gig and platform workers will also have the right to organise and bargain collectively with platform companies and would be required to register on the e-Shram portal to facilitate portability of benefits.
3. Registration and obligations of platform companies: The platform companies would be required to register with the Maharashtra Gig and Platform Workers Welfare Board (“MGWWB”). The companies would also be required to disclose their algorithmic management practices and ensure that work is allocated without discrimination. The Mah Gig Workers Bill further provides for contributions by platform companies, the State Government and worker representatives to the Gig and Platform Workers Welfare Fund. This contribution is to be aligned with the social security fund mandated under the SS Code. Further, the platform companies would also be required to provide accident insurance and emergency assistance to workers injured during service.
4. Maharashtra Gig and Platform Workers Welfare Board: The Mah Gig Workers Bill proposes the establishment of the MGWWB to approve and oversee wage and benefit structures, monitor compliance by platform companies, recommend policy measures for the welfare of gig and platform workers and conduct awareness campaigns. The MGWWB will also establish facilitation centres, helplines and grievance redressal mechanisms in accordance with the SS Code.
5. Penalties: Violation of the provisions of the Mah Gig Workers Bill by the platform company is punishable with a fine of INR 5 lakh, which may extend to INR 50 lakh for repeated offences. In cases of intentional exploitation, misappropriation of earnings or denial of social security, the responsible officers may be subject to imprisonment of  2 to 5 years and a fine, or both.
6. Data protection: The Mah Gig Workers Bill provides that digital records of gig and platform workers would be required to comply with the Digital Personal Data Protection Act, 2023 (“DPDP Act”). It further provides that the Mah Gig Workers Bill would be implemented in accordance with the SS Code, the Information Technology Act, 2000 and the DPDP Act, and that the MGWWB would coordinate with the MoLE, NITI Aayog and other relevant national institutions.

4. Karnataka introduces amendments to the Shops and Commercial Establishments Act

On August 24, 2026, the Government of Karnataka introduced the Karnataka Shops and Commercial Establishments (Amendment) Bill, 2026 (“Amendment Bill”), proposing amendments to the Karnataka Shops and Commercial Establishments Act, 1961 (“KSECA”). The Amendment Bill has since been enacted as the Karnataka Shops and Commercial Establishments (Amendment) Act, 2026 (“Amendment Act”), which was brought into force on September 4, 2026. The key amendments introduced by the Amendment Act are set out below:

1. Exemption from dual registration: The Amendment Act exempts establishments employing 10 or more workers that are already registered under the Occupational Safety, Health and Working Conditions Code, 2020 (“OSH Code”) from separate registration under the KSCEA. Godowns or storage facilities located within 100 metres of the principal establishment will also not require separate registration.
2. Digitisation of registration and closure process: Registration applications, registration certificates and related processes will be permitted through electronic or digital mode. The timeline for processing registration applications will also be reduced from 30 days to 7 days. Employers will also be required to notify the Inspector of closure of an establishment through electronic or digital mode.
3. Registration valid until closure: Registration, once issued, will remain valid until the closure or cessation of business of the establishment, removing the requirement for periodic renewal.
4. Service certificates and retention of employee documents: Employers will be required to issue a service certificate to an employee within 7 days of receiving an application. Employers will also be prohibited from retaining original educational certificates, experience certificates or other original documents of employees.
5. Employment of women during night shifts: The Amendment Act removes several existing conditions relating to the employment of women during night shifts, including requirements relating to driver antecedent verification, protection of employees’ contact details, security personnel, route selection, vehicle monitoring and control rooms. The existing requirements relating to written consent, transportation with GPS, rotation of shifts, rest-room facilities and creche costs will continue.
6. Revised penalty framework: The Amendment Act increases penalties under the KSCEA, including:

• general contraventions: up to INR 3,000 for the first offence and INR 5,000 for subsequent offences;
• specified contraventions relating to overtime, leave, production of documents and maintenance/display of records: up to INR 2,000;
• contraventions relating to employment of young persons and women during night shifts: a fine of not less than INR 10,000; and
• obstruction of an Inspector: penalty increased to INR 10,000.

vii. Alignment with the Labour Codes: The Amendment Act also updates references in the KSCEA to the Wage Code and the SS Code, replacing references to the earlier Payment of Wages Act and Workmen’s Compensation Act.

5. Government of Chhattisgarh Notifies the Chhattisgarh Shops and Establishments (Amendment) Act, 2025

On July 8, 2026, the Government of Chhattisgarh published the Chhattisgarh Shops and Establishments (Regulation of Employment and Conditions of Service) (Amendment) Act, 2025 amending the Chhattisgarh Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 ("CSEA").

The key amendments are set out below:

1. Change in applicability threshold: The threshold for applicability of the CSEA has been increased from establishments employing 10 or more persons to establishments employing 20 or more persons.
2. Employment of women during night shifts: Women may be permitted to work between 9:00 p.m. and 6:00 a.m., subject to conditions notified by the State Government.
3. Revised working hours and spread-over

• In line with other State Governments increasing working hours, the Government of Chhattisgarh has also increased the working hours. The daily working hours have been increased from 9 hours to 10 hours;
• The minimum continuous work period after which an employee is entitled to a rest interval has been increased from 5 hours to 6 hours. 
• The spread-over period has been increased from 10.5 hours to 12 hours.
• The permissible overtime limit has been increased from 125 hours to 144 hours per quarter. 

6. Bihar Enacts the Bihar Shops and Establishments (Repeal) Act, 2026

As discussed in our previous edition [here], on June 1, 2026, the Governor of Bihar promulgated the Bihar Shops and Establishments (Regulation of Employment and Conditions of Service) (Repeal) Ordinance, 2026 (“Bihar Ordinance”), repealing the Bihar Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2025 (“BSEA”).

On July 22, 2026, the Bihar Government enacted the Bihar Shops and Establishments (Regulation of Employment and Conditions of Service) (Repeal) Act, 2026 (“Bihar Repeal Act”), which formally repeals the BSEA and replaces the Bihar Ordinance. The Bihar Repeal Act was published in the Bihar Gazette on July 23, 2026, and came into force from the date of publication.  

The Bihar Repeal Act has been enacted in view of the implementation of the OSH Code and the avoid the substantial overlap between the OSH Code and the BSEA. The Bihar Government considered that several provisions of the BSEA substantially overlap with the OSH Code, while matters not covered by the OSH Code would be addressed under the other Labour Codes. 

7. Tamil Nadu extends permission for shops and establishments to remain open on all 365 days

On August 24, 2026, the Tamil Nadu Government issued a notification extending the exemption that permits all shops and establishments in the State to remain open on all 365 days of the year for a further period of 3 years, with effect from August 24, 2026, unless revoked earlier. 

The exemption is subject to the following conditions:

1. Every employee must be provided 1 day of holiday every week on a rotational basis. Details of all employees must be maintained in Form S of the Tamil Nadu Shops and Establishments Act, 1947 (“TNSEA”) and displayed at a conspicuous place in the establishment.
2. Employers must display, on a daily basis, details of employees who are on leave or holiday at a conspicuous location within the establishment.
3. Wages, including overtime wages, must be credited directly to employees’ savings bank accounts.
4. Employees cannot be required or permitted to work for more than 8 hours per day or 48 hours per week. The total working hours including overtime must not exceed 10.5 hours per day or 57 hours per week.
5. If employees are found working on holidays or beyond normal working hours without proper overtime authorization, penal action may be initiated against the employer under the TNSEA.
6. Women employees should ordinarily not be required to work beyond 8:00 p.m. However, they may be permitted to work between 8:00 p.m. and 6:00 a.m. with their written consent, and if adequate measures are taken to ensure their dignity, safety and protection. 
7. Employers must provide transportation facilities to women employees working in Night shifts and display a notice regarding the availability of such transportation at the main entrance of the establishment.
8. Employers must provide employees with rest rooms, washrooms, safety lockers and other basic amenities.
9. Every employer engaging women employee must constitute and maintain an Internal Committee in accordance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (“POSH Act”).
10. Any violation of the statutory provisions or the conditions of the exemption may result in penal action against the employer or manager.
11. Employers operating establishments in Tamil Nadu can continue to keep their establishments open throughout the year for a further period of 3 years. However, they must ensure strict compliance with the prescribed employee welfare, working hours, overtime, transportation and workplace safety requirements to continue availing the exemption.

8. Gujarat opens online registration portal for establishments under the OSH Code

On August 27, 2026, the Office of the Deputy Labour Commissioner, Ahmedabad, issued a public notice regarding mandatory online registration of establishments under the OSH Code. The notice follows the launch of the Shram Setu Portal by the Government of Gujarat for implementation of the registration framework under the Gujarat Occupational Safety, Health and Working Conditions Rules, 2025.

The public notice states that factories, construction sites, industrial establishments and commercial establishments employing 10 or more workers are required to obtain registration under the OSH Code.

The key requirements are set out below: 

1. Online registration through Shram Setu Portal: The Government of Gujarat has operationalised the Shram Setu Portal with effect from August 25, 2026, to enable online registration of establishments covered under the OSH Code.
2. Registration of new establishments: New establishments covered under the OSH Code must file Form I online and obtain registration within 60 days of the Code becoming applicable to them.
3. Updation of registrations by existing establishments: Establishments already registered under the erstwhile labour laws are required to file Form I online and update their registration certificates within 180 days from implementation of the OSH Code.
4. Display of registration certificate: Employers are required to prominently display the registration certificate at the establishment, either in physical or digital form.
5. Registration process: Employers are required to complete user registration, create an establishment profile and submit the online registration application through the portal.
6. Penalties for non-compliance: Failure to obtain registration within the prescribed timelines or submission of incorrect information may attract penalties under the OSH Code, including fines ranging from INR 2,00,000 to INR 3,00,000

While the notice is addressed to labour authorities and Inspector-cum-Facilitators, employers operating eligible establishments in Gujarat should ensure timely registration and updation of registration details through the Shram Setu Portal. The notice indicates increased enforcement focus on compliance with the OSH Code registration requirements.

9. West Bengal proposes revised Profession Tax Schedule

On August 18, 2026, the Government of West Bengal issued a draft notification proposing a new Schedule under the West Bengal State Tax on Professions, Trades, Callings and Employments Act, 1979. The draft Schedule seeks to revise profession tax rates and introduce new classifications of taxpayers. Stakeholders may submit objections or suggestions within 14 days from the date of publication of the notification.

The key proposals include:

1. Revised profession tax slabs for employees: Employees earning more than INR 20,000 per month would be liable to profession tax ranging from INR 100 to INR 208 per month, depending on salary levels. 
2. New tax structure for professionals and businesses: Profession tax liabilities for individuals engaged in professions, callings, trades and businesses would be linked to annual income, turnover or gross receipts, subject to prescribed thresholds. 
3. Fixed annual tax for specified categories: Certain categories of persons and businesses, including companies, directors, consultants, hospitals, security service providers and digital economy professionals, would be required to pay profession tax of INR 2,500 per annum irrespective of income or turnover. categories include companies, directors, consultants, hospitals, security service providers and various digital and technology professionals, including persons independently engaged in cloud computing, cybersecurity, blockchain development, data analytics, UI/UX design, product management and digital consulting.

While the notification is currently in draft form, employers and businesses operating in West Bengal should review the proposed changes as they may result in expanded profession tax coverage and revised tax liabilities.

1. U.S. Federal Court Dismisses Criminal Fraud and Bribery Case Against Gautam Adani and Others

In a significant development, U.S. Federal Judge Nicholas Garaufis dismissed the criminal fraud and bribery case against Indian billionaire Gautam Adani, Sagar Adani, and associated individuals, following the U.S. Department of Justice (“DoJ”) decision to drop the prosecution. 

The prosecution stems from an alleged USD 250 million bribery scheme involving solar energy contracts in India, which was the subject of parallel investigations by the DoJ and the U.S. Securities and Exchange Commission ("SEC"). Earlier this year, the SEC settled its civil case and resolved the charges against Adani and his nephew, directing them to pay USD 18 million in fines.

This development follows the earlier closure, reported in our March–April 2026 edition [here], of a parallel long-running Foreign Corrupt Practices Act (“FCPA”) probe by the DoJ against Dr Reddy's Laboratories without enforcement action, and the SEC's conclusion of its related investigation in February 2026 without proposing any action. Taken together, these developments signal that while cross-border enforcement against India-based entities and individuals remains a live risk, both the DoJ and SEC continue to evaluate and, in appropriate cases, exercise prosecutorial discretion. 

2. Former Goldman Sachs Banker Convicted for Bribery Scheme in Ghana

On August 6, 2026, a federal jury convicted Asante Kwako Berko, a dual U.S.-Ghanaian citizen and former Executive Director in Goldman Sachs' Investment Banking Division, on charges of conspiracy to violate the FCPA, a substantive FCPA violation, and money laundering conspiracy.

Berko was responsible for a deal between Aksa Enerji (a Turkish energy company and Goldman Sachs’ client) and the Republic of Ghana for the construction and financing of a power plant, beginning in December 2014. He and co-conspirators paid or agreed to pay more than USD 1 million in bribes to multiple Ghanaian government officials, including a discussed USD 1 million payment to Ghana’s Minister of Power and USD 5,000 cash payments to five officials during an all-expenses-paid trip to Turkey.

The scheme allegedly involved various methods to conceal the payments, including the use of a personal email account, false statements to Goldman Sachs compliance team, shell companies, sham invoices, nominee account holders, and cash withdrawals. The payments were laundered through U.S. and foreign bank accounts. Goldman Sachs ultimately withdrew from the deal due to concerns regarding corruption concerns.

The case underscores the DoJ's continued FCPA enforcement focus on individual bankers/dealmakers (not just corporates), the risks of using personal communications channels to evade compliance monitoring, and the importance of robust third-party/deal-vetting controls, particularly for infrastructure and energy financing deals involving foreign government approvals.