Even one homebuyer can now drag errant builder to NCLT: Govt ordinance
Even one homebuyer can drag an errant builder into the National Company Law Tribunal (NCLT), says the government after an Ordinance promulgated on Wednesday empowered homebuyers to do so. The Ordinance to amend the Insolvency and Bankruptcy Code (IBC), approved by President Ram Nath Kovind two weeks after it was approved by the Cabinet, puts homebuyers on a par with financial creditors. Homebuyers now will be part of the committee of creditors (CoC) in bankruptcy proceedings.
Relief for MSME borrowers, get temporary loan-repayment breather
The Reserve Bank of India (RBI) has given a temporary loan-repayment breather to all micro, small and medium (MSMEs) that have been affected due to implementation of the Goods and Services Tax regime. A loan account is qualified as a Non-Performing Asset (NPA) based on 90 day and 120 day delinquency norms. The RBI noted that that formalization of business through registration under GST had adversely impacted the cash flows of the smaller entities during the transition phase with consequent difficulties in meeting their repayment obligations to banks and NBFCs.
MCA quizzes auditors who quit assignments; explanations sought in 15 cases
The corporate affairs ministry (MCA) has sought details from some auditor companies, which resigned their assignment after the companies concerned had reportedly refused to give them adequate information. Officials said explanations had been sought from auditors in 15-odd cases. Rules, they said, were being worked on regarding eligibility to audit big companies. These rules will be part of the proposed National Financial Reporting Authority (NFRA), as many smaller auditing firms are reportedly replacing the bigger ones that had refused to audit some companies.
RBI initiates work on public credit registry
To provide a single-point and real-time source for financial liabilities of a person or entity, the Reserve Bank of India has decided to set up a public credit registry (PCR) in a modular and phased manner. “An Implementation Task Force (ITF) is being constituted by the Reserve Bank of India to help design undertake logistics for the next steps in the setting up of the PCR,” said the RBI in its Statement on Developmental and Regulatory Policies, which was issued along with the second bi-monthly monetary policy statement.
AirAsia CEO Tony Fernandes fails to appear before CBI, fresh summons soon
The CBI on Wednesday said it will issue fresh summons to Malaysia-based AirAsia Group CEO Tony Fernandes as he failed to appear before it in connection with an alleged bribery case to get FDI rules tweaked. “Fernandes did not appear before the agency today. We will issue fresh summons to him soon,” a Central Bureau of Investigation (CBI) official said requesting anonymity. The agency summoned Fernandes on June 1, through email, asking him to come and record his statement before the investigators at the agency’s headquarters.
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