India

The bankruptcy court has allowed a petition filed by an operational creditor of Bombay Rayon Fashions Ltd (BRFL) to admit the company for the corporate insolvency resolution process (CIRP) and appointed Santanu T Ray of AAA Insolvency Professionals as its resolution professional, the Economic Times of India reported. The Mumbai bench of the National Company Law Tribunal (NCLT) admitted the plea filed by Vikash Parasprampuria of Chiranjilal Yarn Traders against the textile maker.

Consumer cutbacks due to raging inflation and higher borrowing costs are failing to dent investment plans at Indian businesses tapping the country’s biggest lender, a sign that a recovery in Asia’s third-largest economy is gathering pace, Bloomberg News reported. Companies are steadily drawing down from a $71 billion loan pipeline, Dinesh Kumar Khara, chairman of State Bank of India, told Bloomberg News in an interview at his Mumbai office.

The bankruptcy court has ordered personal insolvency proceedings against Sanjay Chhabria, promoter of property company Radius Group, the Economic Times of India reported. This is the first high-profile case to be admitted for personal insolvency since higher courts stayed earlier petitions, while a tribunal verdict is also pending in another case. The Mumbai bench of the National Company Law Tribunal (NCLT) passed the order on a petition filed by Beacon Trusteeship. Two Radius Group companies are already into NCLT.

The National Company Law Tribunal (NCLT) has dismissed the petition of Wave Mega City Center (WMCC) Private Limited that had approached the tribunal under section 10 of the Insolvency and Bankruptcy Code to initiate the Corporate Insolvency Resolution Process (CIRP), the Economic Times of India reported. The tribunal had completed the argument and reserved the order on October 26, 2021. “The tribunal has just pronounced the order. We evaluate the order and will approach the appropriate court for the next course of action.

The Supreme Court on Friday approved a loan settlement offer given by Siva Industries promoters, while quashing a liquidation order passed by the National Company Law Tribunal (NCLT) and upheld by the appellate authority, the Economic Times of India reported. Siva group founder C Sivasankaran’s father, RCK Vallal, offered the settlement under Section 12A of the Insolvency and Bankruptcy Code, which enables lenders to seek NCLT approval to withdraw their petition for corporate insolvency resolution process (CIRP) provided 90% of them agree to the proposal.

The worst is still to come for the Indian rupee after its slide in May to a historic low, according to analysts and forward markets, Bloomberg News reported. The currency may drop to between 79 to 81 per dollar over the next few months, according to analysts from UBS AG to Nomura Holdings Inc. and Bloomberg Economics. Forwards are also pricing in a similar weakness for the rupee. The bearish forecasts -- which will see the rupee drop as much as 4% from current level -- stem from a deterioration in India’s external finances.

India's economic growth slipped to 4.1% year-on-year in January -March, data showed on Tuesday, dragged down by soaring prices that could make the central bank's task of taming inflation without hitting growth more difficult, Reuters reported. Gross domestic product grew 4.1% year-on-year in January-March quarter, the data showed, in line with 4% forecast by economists in a Reuters poll, and below 5.4% growth in Oct-December and growth of 8.4% in July-Sept. India also revised its annual GDP estimates for the fiscal year, predicting 8.7% growth, lower than its earlier estimate of 8.9%.

The Indian government is considering spending an additional 2 trillion rupees ($26 billion) in the 2022/23 fiscal year to cushion consumers from rising prices and fight multi-year high inflation, two government officials told Reuters. The new measures will be double the 1 trillion rupees hit government revenues could take from tax cuts on petrol and diesel the finance minister announced on Saturday, both the officials said.

Non-banking finance company Indiabulls Housing Finance Ltd NSE 0.93 % has approached the dedicated bankruptcy court on Friday a plea to admit Mumbai-based realty development firm Radius Estate Projects under Corporate Insolvency Resolution Process (CIRP), the Economic Times of India reported. The realty firm owes over Rs 798 crore to Indiabulls Housing Finance. This is the second such plea filed against the realty development company, which is also facing insolvency proceedings in a petition filed by SBICAP Trustee Company Ltd.

The National Company Law Tribunal (NCLT) has ordered the initiation of insolvency proceedings against Birla Tyres Ltd. in a case filed by multi-business chemicals firm SRF Ltd., an operational creditor of the BK Birla group firm, The Hindu reported. A two-member Kolkata bench of the NCLT has also appointed Seikh Abdul Salam as Interim Resolution Professional (IRP) to run the operations of the company after suspending the board and also declared a moratorium as per the procedures of the Insolvency & Bankruptcy Board (IBC).