**Executive Summary**
This document addresses questions raised in Lok Sabha regarding the Arbitration Council of India (ACI), as of February 6th, 2026. It covers the provision for the ACI in the 2019 Arbitration Act, its non-constitution, and the government's efforts to promote institutional arbitration. The document emphasizes ongoing initiatives to develop India as a hub for international arbitration and facilitate the transition of corporates and PSUs to institutional arbitration.
**Key Points / Main Content**
* **Arbitration Council of India (ACI):**
* The Arbitration and Conciliation (Amendment) Act, 2019, inserted Part IA in the Arbitration and Conciliation Act, 1996, providing for the establishment of the Arbitration Council of India (ACI).
* ACI's mandate includes framing policies for grading arbitral institutions and recognizing professional institutes that accredit arbitrators.
* As of the date of the document, the ACI has not been constituted.
* **Government Initiatives:**
* The Government of India has taken initiatives to develop India as a hub for arbitration.
* Amendments to the Arbitration and Conciliation Act in 2015, 2019, and 2021 aim to ensure timely conclusion of arbitration proceedings and minimize judicial intervention.
* The India International Arbitration Centre Act, 2019, led to the establishment of the India International Arbitration Centre to facilitate institutional arbitration.
* The Centre provides world-class arbitration related services and is envisaged to become a model arbitral institution.
* **Promotion of Institutional Arbitration:**
* Continuous steps are being taken to create awareness and promote institutional arbitration.
* A conference was organized in June 2025 to raise awareness among Central Public Sector Enterprises.
* In September 2025, the India International Arbitration Centre hosted an Oxford-Style Debate and a webinar on Institutional Arbitration.
* The India International Arbitration Centre launched its annual magazine to disseminate knowledge on alternative dispute resolution.
* **Adoption of Institutional Arbitration:**
* In the financial year 2024-25, certain Central Public Sector Enterprises, including Oil and Natural Gas Corporation, Gas Authority of India Limited, and Bharat Petroleum Corporation Limited, have adopted India International Arbitration Centre as the designated arbitral institution.
**Impact Analysis**
* **Arbitral Institutions:**
* **Impact:** The document suggests that the arbitral institutions will be subject to policies and gradings once the ACI is constituted.
* **Action Required:** These institutions need to prepare for the potential accreditation process and any new regulatory framework established by the ACI.
* **Corporates and PSUs:**
* **Impact:** The document highlights the government's push for transition from ad-hoc to institutional arbitration.
* **Action Required:** These entities should consider adopting India International Arbitration Centre in their dispute resolution clauses.
* **India International Arbitration Centre:**
* **Impact:** The document highlights the importance of the India International Arbitration Centre as a facilitator of institutional arbitration.
* **Action Required:** The India International Arbitration Centre continues to take steps for disseminating the advantages of institutional arbitration.
* **Ministry of Law and Justice:**
* **Impact:** The ministry is responsible for establishing the ACI.
* **Action Required:** To continue to promote institutional arbitration and create awareness.
Key Entities Referenced
Arbitration Council of India (ACI): A proposed body to ensure predictability, transparency, and efficiency in dispute resolution, whose establishment is a central topic of discussion.
Arbitration and Conciliation Act, 1996: The primary legislation governing arbitration in India, which has been amended several times (2015, 2019, 2021) to promote institutional arbitration.
Arbitration and Conciliation (Amendment) Act, 2019: The Act which amended the Arbitration and Conciliation Act and provided for the establishment of the Arbitration Council of India.
India International Arbitration Centre: An established body created to facilitate institutional arbitration, including international commercial arbitration.
Ministry of Law and Justice: The government ministry responsible for arbitration-related matters and answering the questions posed in the document.
GOVERNMENT OF INDIA
MINISTRY OF LAW AND JUSTICE
DEPARTMENT OF LEGAL AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 1223
TO BE ANSWERED ON FRIDAY, THE 06TH FEBRUARY, 2026
ARBITRATION COUNCIL OF INDIA
1223. Shri Selvaganapathi T.M.:
Shri Suresh Kumar Shetkar:
Will the Minister of LAW AND JUSTICE be pleased to state:
(a) whether there was a provision of Arbitration Council of India (ACI) in the
Arbitration Act in 2019 to ensure predictability, transparency and efficiency in
dispute resolution, if so, the details thereof;
(b) whether even after six-years, ACI is yet to constitute;
(c) if so, whether India can emerge as a hub of international arbitration without
the constitution of ACI, if so, the details thereof along with the reasons for not
expediting the constitution of the council;
(d) whether non-establishment of the ACI is adversely affecting efforts to make
India a hub of international arbitration, if so, the steps taken to ensure the
establishment of the ACI at the earliest;
(e) whether the Government plans to regulate or promote institutional arbitration
in the absence of mandated oversight body, if so, the details thereof; and
(f) the reasons for the prolonged transition of corporates and PSUs from ad-hoc
to institutional arbitration and the role played by the Government in facilitating
this shift?
ANSWER
MINISTER OF STATE (INDEPENDENT CHARGE) OF THE
MINISTRY OF LAW AND JUSTICE; AND MINISTER OF STATE IN
THE MINISTRY OF PARLIAMENTARY AFFAIRS
(SHRI ARJUN RAM MEGHWAL)(a) and (b) Section 10 of the Arbitration and Conciliation (Amendment) Act,
2019, vide which Part IA has been inserted in the Arbitration and Conciliation
Act, 1996, provides for the establishment of a seven member body called the
Arbitration Council of India, inter-alia for framing policies governing the grading
of arbitral institutions, recognizing professional institutes providing accreditation
of arbitrators and holding training, workshops and courses in the area of
arbitration. The Arbitration Council of India has not been constituted as yet.
(c) to (f) During the past decade, the Government of India has taken various
initiatives with a view to develop India as a hub of arbitration. These include
amendments to the Arbitration and Conciliation Act, 1996 carried out in the years
2015, 2019 and 2021. These amendments aim at ensuring timely conclusion of
arbitration proceedings, neutrality of arbitrators, minimizing judicial intervention
in the arbitral process and quick enforcement of arbitral awards. The amendments
are further aimed at promoting institutional arbitration, updating the law to reflect
best global practices and resolve ambiguities thereby establishing an arbitration
ecosystem where arbitral institutions can flourish.
The India International Arbitration Centre Act, 2019, has been enacted, leading
to the establishment of the India International Arbitration Centre for the purpose
of creating an independent and autonomous body for facilitating institutional
arbitration including for international commercial arbitration. The Centre is
providing world class arbitration related services at its facilities in a cost effective
manner, including reputed empanelled arbitrators and requisite administrative
support for the smooth conduct of arbitral proceedings. The Centre is envisaged
to become a model arbitral institution in the country, thereby paving the way for
enhancing the quality of institutional framework for arbitration.
Further, continuous steps are being taken for creating awareness about and
promoting institutional arbitration in the country. In the month of June 2025, a
conference was organised by the Department of Legal Affairs in collaboration
with India International Arbitration Centre and Oil and Natural Gas Corporation,
a Central Public Sector Enterprise, to raise awareness about the benefits of
institutional arbitration among Central Public Sector Enterprises. The Conference
served as a dynamic platform for dialogue on institutional arbitration and the
importance of adopting institutional arbitration under the aegis of India
International Arbitration Centre.
In September, 2025, India International Arbitration Centre hosted an Oxford-
Style Debate at the Hon'ble High Court of Delhi on the topic of Institutional
Arbitration and the debate witnessed compelling arguments led by eminent
speakers. Following this, in the month of September 2025, a webinar on thetheme Institutional Arbitration was also organised by the India International
Arbitration Centre, in collaboration with Federation of Indian Exports
Organisation which brought together the exporters to understand the importance
of institutional arbitration in resolving commercial disputes.
India International Arbitration Centre has also launched the inaugural edition of
its annual magazine, for dissemination of knowledge of law and procedures on
alternative dispute resolution mechanisms. The magazine contains articles from
amongst others, notable national and international arbitration practitioners.
In the financial year 2024-25, certain Central Public Sector Enterprises being Oil
and Natural Gas Corporation, Gas Authority of India Limited and Bharat
Petroleum Corporation Limited, have adopted India International Arbitration
Centre as the designated arbitral institution in their dispute resolution clauses.
India International Arbitration Centre also continues to take steps for
disseminating the advantages of institutional arbitration.
****