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.

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.

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.

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.

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.

An Indian bankruptcy court has to decide on a Rs 10,000-crore question in the case of Reliance Communications Ltd. The decision will have a bearing on the single most important asset of the telecom service provider—its telecom licence, Bloomberg News reported. RCom is under insolvency proceedings before the Mumbai bench of the National Company Law Tribunal and has been under moratorium since May 15, 2018. The company has spent over Rs 10,000 crore to acquire spectrum, Senior Advocate Ravi Kadam informed the tribunal.

The government’s move to amend the insolvency law to allow pre-packaged insolvency resolution plans for micro, small and medium enterprises (MSME) with defaults of not more than ₹1 crore is welcome, according to a commentary in the Economic Times of India. The Insolvency and Bankruptcy Code (Amendment) Bill, 2021, that seeks to replace an Ordinance, will enable the creditor and the debtor to informally work on a rehabilitation plan (instead of financial bidding) without a bankruptcy court’s involvement.

The government on Monday introduced a bill in the Lok Sabha to amend the insolvency law and provide for a pre-packaged resolution process for stressed MSMEs, the Economic Times of India reported. The proposed amendments would enable the government to notify the threshold of a default not exceeding Rs 1 crore for initiation of pre-packaged resolution process. The government has already prescribed the threshold of Rs 10 lakh for this purpose.

A British court on Monday granted a bankruptcy order against Vijay Mallya, paving the way for a consortium of Indian banks led by the State Bank of India (SBI) to pursue a worldwide freezing order to seek repayment of debt owed by the now-defunct Kingfisher Airlines, the Financial Express reported. “As at 15.42 [UK time], I shall adjudicate Dr Mallya bankrupt,” Chief Insolvencies and Companies Court (ICC) Judge Michael Briggs said in his ruling during a virtual hearing of the Chancery Division of the High Court.

India’s Supreme Court rejected petitions by telecom companies seeking a reassessment of how much they owe the government, a two-decade-long dispute that threatens the survival of cash-strapped Vodafone Idea Ltd., Bloomberg News reported. A two-judge panel headed by L. Nageswara Rao on Friday dismissed the petitions by Vodafone Idea and Bharti Airtel Ltd. “All applications are dismissed,” Rao said without without giving reasons. A detailed copy of the order is awaited. During the previous hearing, judges referred to a verdict last year that said no recalculation would be allowed.