#BUDS Act

The Kerala High Court granted pre-arrest bail to a company director under BNSS Section 482, holding that mere positional role in a financial entity does not equate to criminal culpability under the BUDS Act when there is no evidence of fund receipt, control, or fraudulent intent. This clarifies that director liability requires individualized proof of active participation, not automatic imputation from corporate structure.

Bombay High Court rules that former directors cannot be held liable under the MPID and BUDS Acts for company misconduct post-resignation unless personal misappropriation is proven. The judgment clarifies the limited scope of director liability in financial offences, offering critical protection for ex-directors facing criminal charges.