HC rejects Centre’s plea against Vodafone’s UK arbitration
The Delhi High Court on Monday dismissed the Centre’s plea challenging Vodafone’s move to initiate two international arbitration against India. Vodafone has initiated the proceedings — under India-United Kingdom Bilateral Investment Protection Agreement (BIPA) and India-Netherlands BIPA — in connection with the tax demand rose against the company by the Indian government in relation to its $11-billion deal to acquire the stake of Hutchison Telecom.
US court orders probe into PNB fraud
A US court has initiated an investigation into the alleged fraud involving jeweler Nirav Modi and Punjab National Bank and has appointed Alvarez & Marshal to conduct the inquiry. The Bankruptcy Court for the Southern District of New York said the investigation has to be carried out before deciding on bankruptcy proceedings against Modi’s companies Firestar Diamond Inc, A Jaffe Inc and Fantasy Inc. PNB had approached the bankruptcy court and said Modi and his companies had defrauded lenders. A team of investigators including senior India executives of Alvarez & Marsal will carry out investigations in the case.
SC issues notice to Unitech on contempt plea of home buyers
The Supreme Court has sought response from real estate major Unitech Ltd on a plea seeking initiation of contempt proceedings against it for alleged non-compliance of its order to compensate some hassled home buyers for delayed delivery of their dream homes. A bench of Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud issued notice to the real estate firm on a joint contempt petition moved by 13 home buyers who claimed they were yet to receive a compensation of Rs 80,000 each as per the directions of the apex court on September 20 last year.
Insolvency regulator shows teeth
Sending a strong signal, insolvency regulator IBBI’s Disciplinary Committee (DC) has suspended the registration of an insolvency resolution professional (IRP) Bhavna Sanjay Ruia for one year for charging an exorbitant fee. This move came after the Committee concluded that Ruia, who is enrolled as a professional member of ICSI Institute of Insolvency Professionals, had engaged in acts that “brought disrepute to the noble profession of IP and severely compromised her status as fit and proper person”.
Fee regulations for insolvency professionals soon
The Insolvency and Bankruptcy Board of India (IBBI) may shortly go for some “light touch” regulations on the increasingly controversial aspect of fees quoted by insolvency professionals (IPs) handling corporate insolvency resolution processes (CIRP). The regulations will seek to improve transparency (disclosures) and promote best practices in the area of compensation for IPs services commensurate with their qualification, experience and responsibilities, official sources said.
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