India

Nearly half of the 3,247 insolvency cases have been resolved through liquidation, and only a paltry 457 or 14 per cent of them through asset sale as per their lenders-approved resolution plans, a report said on Friday, the Economic Times of India/em> reported. Even the various resolution processes have witnessed the recovery of debt of just 31 per cent on an average, said the data from the Insolvency & Bankruptcy Board of India.

Bank of India has filed an insolvency petition against Future Retail Ltd (FRL) at the bankruptcy court for non-payment of dues, the retailer said in a notice issued to stock exchanges on Thursday evening, the Economic Times of India reported. The company said it defaulted on payment of monies due in terms of framework agreement it entered with the bank. The decision of lenders to file an application with National Company Law Tribunal (NCLT) will have a bearing on the Rs 24,713-crore offer that Reliance Industries-linked entities made to acquire Future Group companies in August 2020.

The Indian government on Friday said that it has amended the insolvency laws pertaining to voluntary liquidation to speed up the process, the Times of India reported. The laws on voluntary liquidation are part of the ones aimed at improving ease-of-doing business by allowing a smooth exit for firms. A statement from the government said that the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Amendment) Regulations, 2022 were notified on April 5, 2022. The law was introduced to provide a mechanism for voluntary liquidation of a solvent corporate person.

The Delhi bench of the National Company Law Tribunal has initiated bankruptcy proceedings against Anand Divine Developers pvt ltd, a group company of realty developer ATS over dues of Rs 25 crore, the Economic Times of India reported. According to the NCLT order, ICICI prudential venture has moved the tribunal after the developer defaulted on payment. “In the present case, the corporate debtor has not filed any reply and written submissions till now.

The Indian Supreme Court on Monday said that it will protect the interests of homebuyers in Supertech’s to-be-razed twin towers situated at Noida’s Emerald Court project from the ongoing insolvency proceedings against the company, and directed the interim resolution professional to separately deal with the refund claims of the buyers and the creditors, the Hindustan Times reported.

In a startling revelation, the Enforcement Directorate has claimed that a prominent business family of Ludhiana and its companies have allegedly been involved in mega financial transactions in Switzerland along with acquiring assets worth several hundred crores in that country in violation of the Foreign Exchange Management Act, the Times of India reported.

The Insolvency and Bankruptcy Board of India (IBBI) has proposed changes to regulations to ensure a time-bound grievance redressal and enforcement mechanism, including reducing timelines with respect to disciplinary proceedings. Various amendments have been mooted by the IBBI, a key institution in implementing the Insolvency and Bankruptcy Code (IBC), with respect to norms for grievance redressal and enforcement mechanism for the service providers registered with it.

The National Company Law Tribunal (NCLT) has ordered initiation of insolvency proceedings against realty firm Santasha Real Estate, the Business Standard reported. The order came on a plea filed by Vani Advertising, an operational creditor to the company that has claimed a default of Rs 40.77 lakh. Admitting the plea, a two-member New Delhi bench of the NCLT appointed an interim resolution professional after suspending the board of the real estate firm.

Indian private lender Axis Bank has decided to bulk up its credit card and retail businesses with a $1.6-billion purchase of Citigroup Inc.'s local consumer banking arm, Reuters reported. The deal announced on Wednesday is Axis Bank's largest by far and would expand its credit card customer base by 31%, narrowing the gap with the third-biggest player ICICI Bank.

Realty developer Supertech has been declared insolvent after the Delhi bench of the National Company Law Tribunal admitted a petition filed by the Union Bank of India for non-payment of dues, the Economic Times of India reported. The NCLT has appointed Hitesh Goel as the insolvency resolution professional (IRP). The company which was under stress and was in the process of demolishing two illegal towers at its Noida project following the order of the Supreme Court, has multiple under construction projects in NCR.