The Indian Supreme Court declined to interfere with the stay on the insolvency resolution process of Videocon Industries Ltd, Bloomberg Quint reported. The top court was not inclined to express any opinion on the merits of the case, a bench presided by Justice L Nageswara Rao said while hearing a petition filed by the successful bidder, Twin Star Technologies Ltd.—owned by billionaire Anil Agarwal's Volcan Investments Ltd., the parent of Vedanta Group. The bench, also comprising Justice Aniruddha Bose, asked the National Company Law Appellate Tribunal to expeditiously decide on the issue.
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The National Company Law Tribunal (NCLT) Mumbai on August 6 dismissed an application seeking the closure of Rolta India’s Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code (IBC), the Times of India reported. A consortium of lenders to Rolta represented by advocates Rohit Gupta and Nausher Kohli had opposed a plea for closure of the process, saying that they have an outstanding of around Rs 5,400 Crores.
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There are seven bidders, including a couple of Asset Reconstruction Companies who have expressed preliminary interest to take over the beleaguered eye care chain Vasan Eye, the Times of India reported. The last date for submission of early interest ended July 19. The NCLT appointed resolution professional had called for early interest for Vasan Eye Care. India’s largest eye care chain Dr Agarwal’s Eye and MGM Hospital’s promoter MK Rajagopalan, Dr GSK Velu’s MaxiVision are among the list of bidders. Dr Amar Agarwal and MK Rajagopalan did not wish to comment on the bid.
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The Piramal group has sought the Reserve Bank of India’s (RBI) permission to reach a settlement and issue new debentures to the foreign lenders of DHFL, in what would be the first of its kind transaction, the Economic Times of India reported. Offshore investors, some of whose identities are not readily available, had put in close to ₹850 crore in masala bonds sold by DHFL — the non-bank mortgage lender that Piramal wants to take over following a bankruptcy court ruling.
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Future Group is fighting its final battle for existence. Supreme Court’s ruling that upheld Singapore Emergency Arbitrator’s award against Reliance Retail’s ₹24,713 crore takeover of Future group companies may have a bigger impact on Kishore Biyani’s retail chain as it is on the verge of bankruptcy, Fortune India reported. Most retail outlets are shut because of the Covid-19 pandemic restrictions. Vendors have stopped supplies as dues ballooned to more than ₹6,000 crore, say company sources.
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A day after Kumar Mangalam Birla’s letter warning that Vodafone Idea (VIL) may reach an “irretrievable point of collapse” became public, banks are worried about the fate of the telecom major which, they say, is “too big to fail”. Lenders both Indian and global have an exposure of Rs 1.8 lakh crore. A large part of this is in the form of guarantees. Some private lenders with a funded exposure have already started making provisions. However the bulk of the exposure is with public sector banks.
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India's financial-crime agency has asked Walmart's Flipkart and its founders to explain why they shouldn't face a penalty of $1.35 billion for alleged violation of foreign investment laws, three sources and an agency official told Reuters. The Enforcement Directorate agency has been investigating e-commerce giants Flipkart and Amazon.com Inc for years for allegedly bypassing foreign investment laws that strictly regulate multi-brand retail and restrict such companies to operating a marketplace for sellers.
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The Rajya Sabha was adjourned for the day on Tuesday amid continuous protest by opposition parties over their demand for a discussion on the use of Pegasus spyware, farmers' agitation against farm reform laws and other issues, the Economic Times of India reported. However, the House passed the Insolvency and Bankruptcy Code (Amendment) Bill, 2021 with a brief discussion amid the ruckus created by opposition parties.
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The National Company Law Appellate Tribunal (NCLAT) has stayed the operation of the orders of the first bench of the National Company Law Tribunal (NCLT) here, upholding the sale process of the properties of Appu Hotels for Rs 423 crore under the Indian Insolvency and Bankruptcy Code, the Economic Times of India reported. MGM Healthcare is said to be the successful purchaser of the properties that include the Le Meridien Hotels in Chennai and Coimbatore.
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In a ruling that will help infrastructure and construction companies, the Delhi High Court said forcing a minimum claim period of 12 months for bank guarantees is wrongful, rejecting interpretations that existing laws rendered shorter claim periods void, the Economic Times of India reported.
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