In a major reform in the insolvency process, the RBI has allowed asset reconstruction companies (ARCs) with Rs 1,000-crore net worth to bid for taking over a business undergoing insolvency, the Times of India reported. The RBI has also mandated new rules aimed at improving the governance and financial health of ARCs, which are companies that extract value from bad loans. Going by public disclosures, there are currently three ARCs with paid-up capital of over Rs 1,000 crore - Edelweiss, JM and ARCIL.

The National Company Law Tribunal (NCLT) has dismissed a petition filed by around 368 homebuyers who had purchased properties from Lavasa Corporation, the Economic Times of India reported. The petition had alleged misconduct in the corporate insolvency resolution process (CIRP) of the company and mistreatment of the homebuyers as a class of creditors.

Canara Bank has filed a fresh insolvency petition against Hyderabad-based engineering, procurement and construction (EPC) company Gayatri Projects, increasing pressure on the debt-laden borrower that owes lenders more than ₹6,000 crore, the Economic Times of India reported. A failed restructuring plan first initiated in 2015 and subsequent default have marked the account as a non- performing asset in the books of banks.

India's central bank is unlikely to extend a Friday deadline for businesses to set up an additional layer of security for consumers' credit card data even after some concerns remain over payments failing and revenue losses, say bankers and merchants, Reuters reported. Despite a demand by smaller merchants to delay the compliance date, there has been no indication so far by the central bank that there is likely to be an extension in deadline, three banking and merchant sources with knowledge of the matter told Reuters.

The draft Indian telecom bill has cleared the air on spectrum ownership for companies undergoing insolvency proceedings and around regulating OTT communication services, analysts said, the Economic Times of India reported. They added that the draft telecom bill also offers a robust regulatory framework within the federal structure to obtain right of way (RoW) approvals in a uniform, non-discriminatory manner, for establishing telecoms infrastructure and expediting the rollout of 5G networks.

The National Company Law Appellate Tribunal (NCLAT) has dismissed an appeal by Siemens Ltd against the invocation of its bank guarantees by Meenakshi Energy. Meenakshi Energy Ltd (MEL) which is presently facing insolvency proceedings, was setting up a 700 MW thermal plant, in which Siemens was a sub-contractor for the project, the Economic Times of India reported.

Regulatory agency Insolvency & Bankruptcy Board of India (IBBI) has allowed splitting of companies to attract more participants into the corporate resolution process as it seeks to provide flexibility and increase realisation, the Economic Times of India reported. The move to split assets is seen to be beneficial in cases involving real estate players and other entities with multiple projects, all of which may not be viable, or there may be some assets which will generate higher value, a senior government official said.

Lenders of Future Enterprises have appointed forensic auditor J C Kabra & Associates, in line with a finance ministry mandate to audit non-performing loan accounts with over Rs 50 crore exposure, the Economic Times of India reported. Central Bank of India, the lead bank for Kishore Biyani-promoted Future Enterprises, appointed the forensic auditor on September 12, according to a stock exchange filing by the company late Monday evening. The troubled retailer, which defaulted on its loans, has outstanding loans of Rs 6,700 crore, said a lender.

According to research, insolvency case recoveries increased slightly from 26% in Q1 of the previous fiscal to 30.6% in Q1 of the current fiscal, although the number of insolvency cases filed/admitted increased by 23.5% during this time, India Infoline News Service reported. The total amount of financial creditors' acknowledged claims increased from Rs6,84,901.3 crore in March 2022 to Rs7,67,384.9 crore in June 2022, although the liquidation value of these cases remained essentially the same at Rs1,31,447.9 crore and Rs1,31,468.6 crore, respectively.

State-owned Central Bank of India has opened a new front to recover dues from the Biyanis, promoters of the debt laden retail conglomerate Future Group that is facing bankruptcy proceedings, the Economic Times of India reported. The bank has filed a personal insolvency case against promoter Kishore Biyani, his elder brother Vijay Biyani and cousin Sunil Biyani with total claims of Rs 1,047 crore. The claims were filed in the Mumbai bench of the National Company Law Tribunal (NCLT) a few days ago and are yet to be admitted by the court, documents seen by ET show.