The government has proposed the decriminalisation of several violations under the Insolvency and Bankruptcy Code (IBC) to further improve the ease of doing business and speed up corporate failure resolution, the Economic Times of India reported. The move is in line with the government's initiative to clean up the statute book to decriminalise minor offences and switch to monetary penalties. A similar process has been carried out in the laws for companies and limited liability partnerships.
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India’s bid to streamline bankruptcy proceedings includes provisions that could change the proportion of money creditors get from a firm’s liquidation, according to a Bloomberg News analysis. To speed up proceedings and counter a mounting caseload, the Ministry of Corporate Affairs last week published published dozens of proposed amendments to the insolvency code, giving the public until Feb. 7 to provide input. Any changes to the law would have to be voted on by parliament.
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A bankruptcy court on Thursday admitted military-focussed software developer Rolta India for the corporate insolvency resolution process (CIRP), allowing a petition filed by state-owned Union Bank of India, the Economic Times of India reported. The Mumbai Bench of the National Company Law Tribunal (NCLT) appointed Mamta Binani as the interim resolution professional for the listed firm. Union Bank had approached the bankruptcy court in February 2020 after the Mumbai-based company defaulted on dues of over ₹1,413 crore to the lender.
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The government proposal to amend the Insolvency and Bankruptcy Code (IBC), such that it permits mandatory admission of insolvency applications filed by financial creditors, is seen as a course correction after the Supreme Court's judgement on Vidarbha Industries Power, an Anil Ambani group company, the Economic Times of India reported.
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India has proposed more than 40 amendments to its insolvency law, which could impact how recoveries are shared among creditors, decriminalize business failures, allow empires to be broken up, and give the government special powers in cases of public interest, Bloomberg News reported. The seven-year-old Insolvency and Bankruptcy Code was enacted at a time when India’s banks were weighed down by over-leveraged companies and soaring defaults. The law saw some early success but was overall mired by delays in litigation, followed by disruptions from the pandemic.
India's junior IT minister on Thursday said there was no issue with cryptocurrencies in India if all laws are followed, in remarks that contradicted the central bank's view advising investors to stay away from crypto, Reuters reported. India has been trying to come up with regulation for cryptocurrencies, with a central bank deputy governor even calling for them to be banned, but the government has not been able to formulate legislation yet.
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Adani Goodhomes Pvt. is a step closer to acquiring Radius Estates and Developers Pvt. at a 98% discount to what the bankrupt company’s creditors had been seeking, Bloomberg News reported. Adani offered to pay 319.7 million rupees ($4 million) to financial creditors, compared with their ask for 16.58 billion rupees and 15.2 million rupees to employees, the person said, asking not to be identified as the details are private.
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The National Company Law Appellate Tribunal (NCLAT) on Tuesday upheld the order of NCLT, directing removal of the resolution professional (RP)of Shree Ram Urban Infrastructure Ltd., the Economic Times of India reported. The appellate tribunal also directed the Insolvency and Bankruptcy Board of India to conduct an enquiry against the RP and take appropriate steps in accordance with the law.
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Bank of India has initiated insolvency proceedings against Kolkata-based commercial equipment manufacturer TIL (Tractors India) to recover its dues as previous recovery efforts have failed, the Economic Times of India reported. Five banks, including BoI, have total receivables of ₹600 crore from the company that has been classified as a non-performing asset by banks. "The case has been filed in the NCLT pending admission. There was no other recourse since the company is bleeding and no resolution is in sight," said a person aware of the process.
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Public sector banks-owned National Asset Reconstruction Company (NARCL) has emerged as the highest bidder for the twin SREI companies. According to sources, the bad bank has bid Rs 5,555 crore for the two companies — Srei Infrastructure Finance (SIFL) & Srei Equipment Finance (SEFL), the Economic Times of India reported. Authum Infrastructure is the second highest bidder with its offer of Rs 5,526 crore. The third bidder, comprising Varde Partners and Arena Investors, is understood to have stayed away.
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