India

Intelligence for Better Decision Making

IIFL Fintech Fund Closes $55 Million Round as Investor Interest Surges in India’s Fintech Sector
Jan. 22, 2026 | Financial System

India’s fintech sector is attracting substantial capital, with investors showing particular interest in generative AI applications within financial services.

**IIFL Fintech Fund, backed by the IIFL Group, has closed its second fundraising round at Rs 500 crore (approximately $55 million), focusing on early- to growth-stage fintech startups.**
The fund secured commitments primarily from domestic family offices and high-net-worth individuals and intends to deploy capital across 20–25 portfolio companies. It will reserve 20–25 percent of its corpus for follow-on investments in the top performers from its inaugural fund. After a first close at Rs 200 crore, the vehicle has already invested in five companies—GrayQuest, Fundamento, Knight Fintech—and acquired secondary shares in Leegality.

Founded in 2021, IIFL Fintech completed its first fund at Rs 200 crore in 2022, building an initial portfolio that includes Leegality, FinBox, DataSutram, Insurance Samadhan, and TrustCheckr, which was later acquired by Truecaller.

**Fintech in India is growing rapidly as digital adoption rises, financial inclusion expands, and innovation accelerates across payments, lending, and wealth management.**
Investor interest remains robust at all stages, supported by dedicated funds such as Quona Capital and Cedar-IBSi Capital. More broadly, private equity and venture capital firms in India raised $10.97 billion by December 17, 2025, up nearly 52 percent from $7.19 billion in 2024.
Delhi-NCR Eases Air Quality Restrictions Amid Persistent Enforcement Shortfalls
Jan. 22, 2026 | Environment

Delhi and its neighbouring states have adjusted policy and infrastructure measures to address persistent air quality challenges in the Delhi-NCR region.

**On January 20, 2026, the Commission for Air Quality Management revoked Stage IV of the Graded Response Action Plan for Delhi-NCR after the region’s Air Quality Index improved slightly to 378 (“Very Poor”) and was expected to remain stable.**
Although Stage IV measures, triggered when AQI exceeds 450, were lifted, the commission confirmed that measures under Stages I (AQI 201–300), II (301–400) and III (401–450) remain mandatory to prevent further deterioration, particularly given challenging winter meteorological conditions.

**However, a review of reports from the Delhi Pollution Control Committee and the State Pollution Control Boards of Haryana and Uttar Pradesh exposed widespread enforcement failures.**
Authorities fell short on 7 percent to 99.6 percent of critical pollution control measures. Inspections at construction and demolition sites were especially deficient, with Delhi reporting an 87 percent shortfall and Haryana districts in NCR registering 99.6 percent. Mechanical road sweeping and other road dust control measures also saw inadequate implementation in both Delhi and Haryana.

**Moreover, compliance did not improve during the period when Stage IV was in force.**
On December 24, when air quality reached “Severe” or “Severe+,” some NCR states recorded 100 percent inspection shortfalls. Public grievance redressal mechanisms similarly underperformed: 68 percent to 81 percent of complaints across Delhi, Haryana and Uttar Pradesh remained unresolved. The commission warned that such enforcement lapses seriously undermine efforts to improve air quality and reiterated that GRAP provisions are legally binding at all times.

**Under the continuing Stage III restrictions, authorities require schools up to grade 5 to shift to hybrid or online learning where feasible, impose strict controls on dust-producing construction and demolition activities (including earthwork, piling, open-trench utility laying, brickwork, painting and roadworks), and regulate movement of dust-generating materials and traffic on unpaved roads.**
They have also limited use of BS-III petrol and BS-IV diesel vehicles—except for persons with disabilities—and maintained the ban on non-essential BS-IV or older diesel medium goods vehicles in Delhi. State authorities may allow 50 percent on-site staffing in offices while the remainder work remotely.

Monitored Intelligence for India - Jan. 23, 2026


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Erudite Risk takes an all risks approach to intelligence reporting. We categorize key intelligence into one of 40 different risk intelligence categories.

The goal is to provide intelligence that allows decision makers to avoid being blindsided by what they may have missed, while informing them to make better decisions as well.

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NEP 2026: Power sector to offer 24x7 reliable supply compensation for non-compliance

Hindu Business Line | English | News | Jan. 23, 2026 | Regulation

The draft National Electricity Policy (NEP) 2026 aims to improve power supply quality in India by ensuring 24x7 reliable electricity with compensation for non-compliance and timely grievance resolution. The policy aligns with India's vision to become a developed nation by 2047 and supports the goal of a $30-trillion economy alongside energy independence. It emphasizes a financially viable, environmentally sustainable power sector that prioritizes consumer needs, offering choices in power supply and usage.

NEP 2026 mandates a consumer-centric framework that includes robust, technology-enabled grievance redressal systems for transparency and accountability. State Electricity Regulatory Commissions (SERCs) are tasked with specifying performance standards for licensees, which must meet or exceed the Central government's minimum criteria. Distribution licensees will publicly share service quality data, monitored down to the distribution transformer level for both urban and rural areas, with SERCs ensuring compliance and compensation for failures.

The policy highlights the importance of investments across various energy technologies based on minimizing consumer costs, rapid deployment, reducing reliance on imported fuels, and maximizing social and environmental benefits. It also proposes streamlined grievance redressal mechanisms incorporating online complaint filing and virtual hearings, along with periodic consumer satisfaction surveys conducted by State Commissions to assess service quality and responsiveness.

Competition Quarterly Milestones – Orders and Judicial Decisions (October-December 2025)

Trilegal | English | AcademicThink | Jan. 23, 2026 | UndeterminedLegal Exposure

The Competition Commission of India (CCI) directed three liquor vendor associations in Maharashtra to cease cartelisation activities including price fixing, control over market entry, and collectively setting retail terms. Despite finding evidence of cartel conduct, CCI refrained from monetary penalties due to mitigating factors such as first-time offence and limited financial capacity.

CCI dismissed a complaint against Google Play Store by Liberty Infospace, ruling that Google’s conduct in terminating developer accounts was justifiable to protect platform integrity and did not constitute abuse of dominance. The decision underscored the need to assess dominant position abuse in market context rather than in isolation.

In a significant enforcement action, the CCI imposed the maximum penalty based on the global turnover of six companies involved in bid rigging in solid waste management tenders for Pune Municipal Corporation. This marked the first use of the 2024 Penalty Guidelines allowing penalty calculation on global turnover when relevant turnover is infeasible. The CCI rejected mitigating factors due to the severity of the collusive conduct.

The National Competition Law Appellate Tribunal (NCLAT) largely upheld CCI’s finding that Meta and WhatsApp abused dominance by imposing unfair data-sharing terms in WhatsApp’s 2021 policy update. It upheld a penalty of INR 213.14 crore (~USD 23.6 million) but set aside a five-year ban on data sharing for advertising purposes, allowing other user consent remedies instead. Meta and WhatsApp have appealed to the Supreme Court.

NCLAT ruled that the CCI lacks jurisdiction over patent-related disputes, affirming its dismissal of a complaint against Vifor International regarding licensing and pricing of a patented pharmaceutical ingredient. The CCI has challenged this decision in the Supreme Court.

The Kerala High Court affirmed the CCI’s jurisdiction to adjudicate abuse of dominance claims in regulated sectors such as broadcasting. The court held that the Competition Act and Telecom Regulatory Authority of India Act operate concurrently, with CCI’s jurisdiction applicable for competition issues distinct from sectoral regulatory matters.

Dhaka declared ‘non-family’ station due to ‘deteriorating’ security situation: Indian officials

The Hindu | English | News | Jan. 23, 2026 | Geopolitical Conflict and Disputes

India has withdrawn the dependents and family members of its officials from its missions in Bangladesh due to a deteriorating security situation. Indian diplomatic posts have faced sustained threats of mob attacks over the past few months, prompting the declaration of Dhaka as a “non-family” station as a precautionary measure ahead of Bangladesh’s February 12 election. Despite these steps, Indian officials stated that diplomatic and consular operations will continue unaffected.

Indian missions in Bangladesh have been targeted in recent months, including over two dozen protests near the Indian High Commission in Dhaka and a stone-pelting incident at the Assistant High Commission in Chittagong on December 18, 2025. The situation worsened following the murder of Sharif Osman Hadi, a radical Islamist youth leader, on December 12. Allegations that his killers fled to India fueled threats and protests against Indian missions in Bangladesh, with retaliatory demonstrations occurring outside the Bangladesh High Commission in India.

India has responded by maintaining heightened police security near the Bangladesh High Commission in New Delhi and tracking developments in Bangladesh closely. Tensions are expected to rise further as the banned Awami League, led by ousted Prime Minister Sheikh Hasina, has resumed activities from Indian territory, including recent and upcoming media engagements in New Delhi by its leaders.

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