Three C Homes (3C) Private Limited, the Delhi NCR based real estate developer once sought after by multiple private equity investors, is headed for liquidation after the bankruptcy tribunal rejected a proposed resolution offer, which was less than 20% of the liquidation value, VCCircle.com reported. The bankruptcy proceedings have been underway at the New Delhi bench of the National Company Law Tribunal (NCLT) since September 2019, on a plea by Arun Kumar Sinha, one of the home buyers for the company’s Lotus City project in Greater Noida, Uttar Pradesh.
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The Indian Supreme Court on Wednesday issued notice in an appeal against the NCLAT order which had held that entries in the balance sheet of the company do not constitute an acknowledgement of liability in terms of Section 18 of the Limitation Act, 1963, India Legal reported. This is for the purpose of filing an application for initiation of the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016. The bench comprising Justices R.F. Nariman, Hemant Gupta and B.R.
The Reserve Bank of India will seek to buy more than 3 trillion rupees ($41 billion) of sovereign bonds in the next fiscal year to support the government’s borrowing plans, Bloomberg News reported. That will exceed the 3 trillion rupees the RBI is expected to spend for the current year ending March. The intention is to cap the benchmark bond yield under 6%, while narrowing its spread with the repo rate to around 150 basis points. This is the first time there’s a clear signal on how much the RBI would spend on bond purchases, as recent market selloffs test its patience.
India’s central bank kept interest rates on hold Friday and began withdrawing some pandemic-era policies, while reiterating its intent to keep its stance accommodative to support economic growth, Bloomberg News reported. The Reserve Bank of India emphasized it was seeking to ensure ample liquidity to manage the government’s near-record borrowing and keep rates lower for longer. It also committed to opening up room for more targeted market operations to ensure financial stability, but bonds sold off as the measures fell short of expectations and lacked details.
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If India’s Future Group cannot sell assets, $4 billion in bank loans and debentures will be at risk, pushing its retail unit into insolvency, the company said in a court filing on Wednesday against Amazon.com Inc., which wants to block the sale, Reuters reported. A court in New Delhi blocked Future Group’s sale of retail assets to Reliance Industries on Tuesday after Amazon raised objections to the deal. The corporate battle has embroiled sprawling businesses led by two of the world’s richest men: Amazon’s Jeff Bezos and Reliance’s Mukesh Ambani.
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Indian Prime Minister Narendra Modi’s government on Monday proposed a nearly half-a-trillion-dollar budget for the 12 months beginning on April 1 that shows New Delhi is taking a largely conservative tack, the New York Times reported. Infrastructure and health care spending are set to rise significantly, but Mr. Modi’s budget also calls for reducing debt. Over all, spending would rise less than 1 percent at a time when India is suffering from its worst recession in years while battling the coronavirus.
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An Indian court has temporarily restrained Future Group from selling its retail assets to Reliance Industries Ltd., an interim win for Amazon.com Inc. which is opposing the deal with an eye to dominate a large and vital consumer market, Bloomberg News reported. The Delhi High Court on Tuesday ordered the Future Group and Indian authorities to ensure the status of the indebted Indian retailer’s assets are maintained as is, putting on hold any further steps toward completing the $3.4 billion sale to billionaire Mukesh Ambani’s Reliance conglomerate.
India’s economy is experiencing the worst contraction in decades as a result of coronavirus. But even if the threat of the virus fades, India’s medium-term growth prospects will be hindered by two policy reversals that predate the pandemic, the Financial Times reported. The first is a return to high tariffs — an external-facing move that will hit productivity. The second is the undermining of the 2016 bankruptcy code — an internal policy that will lead to inefficient allocation of credit.
The Delhi High Court on Monday issued notice in a petition challenging Section 10A of the Insolvency and Bankruptcy Code 2016 insofar as it allows insolvency proceedings against persons and personal guarantors (Getamber Anand vs UOI), the GoaChronicle reported. A Division Bench of Chief Justice DN Patel and Justice Jyoti Singh sought response from Central government and Insolvency & Bankruptcy Board of India. The petitioner, Getamber Anand, is the Chairman and Managing Director of the ATS Group, a leading real estate group in the Delhi-NCR area.
When India revamped its bankruptcy code in 2016, some foreign investors were hopeful it would rewrite the rules of capitalism in the country. The big US distressed debt specialist Oaktree Capital was among those that saw opportunities to invest in the country following the attempt to turn one of the slowest insolvency regimes of any large economy into one of the fastest.