India's compressed biogas (“CBG”) sector sits at the intersection of energy security, decarbonisation and waste management, with the Ministry of Petroleum and Natural Gas's Vision 2040 report estimating a potential of approximately 72 MMTPA of CBG from surplus agricultural residue, municipal waste and livestock dung. Despite this potential and a rapidly evolving policy landscape, the sector remains constrained by significant legislative and regulatory uncertainty that has, to date, impeded the scale of investment the opportunity warrants. Some of the key regulatory challenges facing the CBG sector include ambiguity with respect to whether the Union Government or State Government has legislative competence to legislate on matters pertaining to CBG sector, lack of a sectoral regulator with wide ranging powers, inconsistent offtake frameworks, feedstock-delinked pricing and a policy architecture grounded in executive direction rather than statute. This creates structural risks for project developers, investors, and lenders. Addressing these regulatory gaps is essential for converting India's CBG potential into a commercially bankable and coherent sector. The article provides critical review of some of the key regulatory issues impeding growth of the CBG sector in India.