Banks expect Rs 50,000 crore haircut under AMC/AIF model
Banks expect a haircut of about Rs 50,000 crore under the proposed asset management company (AMC)/Alternate Investment Fund (AIF) model for resolution of stressed loans. The non-performing loans of over Rs 500 crore are proposed to be resolved through this route. Total such NPAs are pegged at about Rs 3.6 lakh crore, of which Rs 3.1 lakh crore belongs to public sector banks. According to two bankers aware of the deliberations, some lenders want further discussions through Indian Banks Association (IBA) on the proposal fearing it would dent their bottom-line immediately. The sale value to an asset reconstruction company could be much lower and banks may have to make adequate provisions and also raise capital to cover the provision, said managing director of one bank.
Bhushan power insolvency: NCLAT allows bidders to revise offers by Monday
The National Company Law Appellate Tribunal (NCLAT) has allowed JSW Steel, Tata Steel and Liberty House to submit revised bids for Bhushan Power & Steel by Monday. On Tuesday, the committee of creditors (CoC) had reaffirmed Tata Steel as the H1 bidder and JSW Steel as the H2 bidder according to an NCLAT observation that asked them to consider only the first batch of resolution plans. Electronic voting on the resolution plans was supposed to start after 48 hours, but the meeting now stands null and void. The CoC had invited revised bids till Tuesday 9 am, a decision taken at a meeting on July 27, after JSW Steel submitted a revised offer the previous night.
Govt may move HC against arbitration ruling that went in favour of RIL
The ministry of petroleum and natural gas has sought legal opinion on an arbitration ruling that went in favour of Mukesh Ambani’s Reliance Industries (RIL) in the gas migration dispute. The government is likely to appeal against the 198-page final award in the Delhi High Court within the next 90 days. A three-member panel said the companies have the contractual right to produce all hydrocarbons resulting from petroleum operations conducted within the contract area. This may include hydrocarbons that could have migrated from an adjacent block. This is despite its finding that gas had migrated from Oil and Natural Gas Corporation’s (ONGC) area to that of RIL’s block.
RBI increases repo rate by 25 bps to 6.5%; retains ‘neutral’ stance
The Reserve Bank of India (RBI) on Wednesday hiked policy rates for the second time in a row on fears of rising inflation rates, and cautioned that India needed to “run a tight ship” to avoid getting affected by the currency war that had started all over the world. Economists now expect the central bank to go in for a prolonged pause and wait to see the impact of the globally evolving scenario. Following the rate hike, which was anticipated by many in the market, the policy repo rate stands at 6.50 per cent. The policy stance continued to remain neutral. Except external member Ravindra Dholakia, the rest in the six-member monetary policy committee voted for a hike.
Daiichi hearing: Delhi High Court issues summons to Singh brothers
Observing that “things are getting out of hand”, the Delhi High Court on Wednesday asked former Ranbaxy promoters Malvinder and Shivinder Singh to be personally present before it on August 10 to explain the discrepancies in their statements on their assets and shareholding in Fortis Healthcare and also if they had sufficient funds to satisfy Japanese pharma major Daiichi’s Rs 3,500 crore arbitration award against them. Justice Rajiv Shakdher asked the Singh brothers if they had sufficient funds to satisfy the award or they should declare themselves “insolvent” and “go behind bars”. “Have seen and heard enough. Wherever you have to get it (the value assured) from, you get it, or you will go behind bars,” he said, adding that “you cannot take the court for a ride”.
Amrapali case: SC orders attachment of accounts, properties
Coming down heavily on the Amrapali group for “defrauding investors” and playing “dirty games”, the Supreme Court on Wednesday directed the attachment of all bank accounts and movable properties of 40 companies of the real estate group. It froze all the bank account of all directors of the 40 companies and also restrained them from selling their personal properties without the permission of the court. Taking serious note of diversion of funds by the group, a bench led by Justice Arun Mishra called for details of all group companies, their bank accounts, names of auditors who handled these 40 companies and their assets since 2008 by Thursday.
MSMEs may get GST refunds
The Goods and Services Tax Council, in its meeting on Saturday, is likely to consider extending some monetary sops to micro, small and medium enterprises (MSME) within the turnover threshold of `1.5 crore, sources said. The 29th Council meeting is being held to exclusively discuss challenges facing small taxpayers, which include laws, tax rates, procedure and GST Network-related issues. Although a final proposal on sops is being formulated, sources said small taxpayers could be given refund of a certain percentage of tax paid by them. This would ensure that no separate exemptions/differential rates are carved out under the GST and the input credit tax (ITC) chain also remains intact.
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