Nearly six years after the 2019 changes to the Arbitration and Conciliation Act, 1996, the government has yet to set up the Arbitration Council of India (ACI). The ACI was planned as the top body to regulate and promote arbitration in India. It would grade arbitral institutions, accredit arbitrators, and keep records of awards. The Council was to be led by a chairperson appointed with Chief Justice of India’s consultation. However, critics say the ACI lacks independence. Most members would be government nominees. This raises concerns since the government is the biggest litigant. Experts warn a regulator dominated by the government could weaken arbitration’s impartiality. Unlike places like Singapore, which have single central institutions, India’s plan to accredit many institutions may lower quality and increase costs. Another worry is banning foreign lawyers from being arbitrators, possibly hurting India’s appeal for international arbitration. On October 18, 2024, the government released a draft Arbitration and Conciliation (Amendment) Bill, 2024. It redefines "arbitral institution" to mean any body running arbitration under its rules, dropping the need for court designation. The Bill would give arbitral institutions powers now held by courts, including extending award deadlines, reducing arbitrators’ fees for delays, and replacing arbitrators. These changes aim to reduce court interference. The Bill also limits courts from granting interim relief only before arbitration starts or after an award is made. The existing rule requiring arbitration to begin within 90 days of court relief would change to start from when the relief application is filed. A new section would let parties seek urgent interim relief from an emergency arbitrator before the tribunal forms. In Parliament, Law Minister Arjun Ram Meghwal said in March 2025 that the Bill was still under review. Experts say building trust in Indian arbitral institutions is key to reducing reliance on ad hoc arbitration and competing globally. Published - January 18, 2026 01:37 am IST