Just the threat of legal action has been pushing many promoters to pay their dues, according to Indian government data, the Economic Times of India reported. Many companies' managements have reportedly paid back their dues shortly after lenders filed cases with the National Company Law Tribunal (NCLT), out of fear of losing control over their companies. Creditors, banks and suppliers have recovered dues pretty much immediately after filing under the Insolvency & Bankruptcy Code (IBC), without even waiting for petitions to be admitted.

Liquidity in the banking system has slipped into a deficit for the first time in FY24 as the Reserve Bank of India's (RBI) decision to impound a chunk of banks' extra funds - and hence reduce inflation risks - has led to a cash shortfall amid tax outflows, the Economic Times of India reported. Daily central bank data showed that the RBI injected funds worth ₹23,644.4 crore into the banking system on August 21, marking the first infusion of cash since March 27. An injection of funds by the RBI reflects deficit liquidity conditions in the banking system.

State-run Bharat Heavy Electricals has challenged an insolvency petition filed against West Bengal-based coal power producer Hiranmaye Energy, as it will "stall" BHEL's efforts to enforce a ₹388.4 crore arbitration award against the company, the Economic Times of India reported. BHEL has filed an application before the Kolkata bench of the National Company Law Tribunal (NCLT), seeking cancellation of the insolvency petition filed by REC.

GQG Partners for the second consecutive day bought shares of JSW Energy in the open market on Wednesday, the Economic Times of India reported. GQG Partners Emerging Market Fund bought 10,284,024 shares or 0.6% stake in the power producer at Rs 341.70 apiece for Rs 351 crore. On Monday, GQG Partners acquired more than 1.2 crore shares of JSW Energy at Rs 345 apiece, aggregating Rs 411 crore. Meanwhile, promoter group entity JSW Investments Ltd sold 1.3% stake in JSW Energy Ltd through the open market on Wednesday for Rs 718 crore.

Deutsche Bank has settled the loans it extended to Go Airlines out of court with its promoters Wadia Group, people aware of the development said. Go Airlines, which operated Go First Airlines, is undergoing voluntary liquidation, the Economic Times of India reported. Last week, Deutsche Bank conveyed to its resolution professional Shailendra Ajmera and lenders that it wants to relinquish itself as a member of the committee of creditors (CoC) since it has separately settled its debt with the promoter.

India’s capital markets watchdog has sought yet another 15 days to finish up the almost three-year-long investigation into Gautam Adani’s eponymous conglomerate, after the three-month extension already granted by the nation’s Supreme Court ended on Monday, Bloomberg News reported. The Securities and Exchange Board of India told the Supreme Court that it needs the additional time to wrap up work on seven out of the 24 matters it has been asked to investigate in the wake of the scathing attack by shortseller Hindenburg Research that accused the Adani Group of wide-ranging corporate malfeasance.

WeWork's warning of a bankruptcy risk would not have an impact on its India unit, regional CEO Karan Virwani said on Wednesday, Reuters reported. New York-based WeWork, which was valued at $47 billion in 2019, on Tuesday raised "substantial" doubt around the continuance of its operations and warned of a possible bankruptcy. WeWork India, which is backed and owned in majority by Indian real estate firm Embassy Group, said it was focused on growth with sustained profitability and the fundamentals of its business remain strong.

The Reserve Bank of India asked lenders to set aside more cash, stepping up measures to drain liquidity in the financial system, Bloomberg News reported. Bank stocks fell. The central bank ordered lenders to set aside 10% of their incremental deposits garnered between May 19 and July 28, Governor Shaktikanta Das said Thursday. The move will remove a little over one trillion rupees ($12 billion) from the banking system, he said after leaving interest rates unchanged.

Banks have written off bad loans worth Rs 14.56 lakh crore in the last nine financial years starting 2014-15, Parliament was informed on Monday, the Economic Times of India reported. Out of the total Rs 14,56,226 crore, written off loans of large industries and services stood at Rs 7,40,968 crore. Scheduled Commercial Banks (SCBs) have recovered an aggregate amount of Rs 2,04,668 crore in written-off loans, including corporate loans, since April, 2014 and up to March, 2023, Minister of State for Finance Bhagwat Karad said in a written reply to Lok Sabha.

The National Company Law Tribunal (NCLT) Mumbai recently had allowed an application filed by Edelweiss Asset Reconstruction Company Limited and initiated Corporate insolvency proceedings against well known art director Nitin Desai’s ND’s Art World Pvt Ltd over a debt of Rs 252 crore, the Economic Times of India reported. Edelweiss had filed the company petition last year to initiate Corporate Insolvency Resolution Process against the Corporate Debtor for unresolved financial debt of Rs 252 crore.