Tata Sons ouster: NCLAT admits Cyrus Mistry’s plea
The National Company Law Appellate Tribunal (NCLAT) on Wednesday admitted a petition moved by ousted Tata Sons chairman Cyrus Mistry, in his personal capacity, seeking to set aside an order of the Mumbai bench of the National Company Law Tribunal (NCLT) upholding his removal. In the July 9 order, the NCLT bench had dismissed Mistry’s plea challenging his removal as Tata Sons chairman. The appellate tribunal also issued notices to Tata Sons and other respondents, asking them to reply in 10 days.
Stressed power assets: Panel to discuss ARC, no fiat to RBI under Section 7
The empowered committee on power, in its crucial meeting on Friday, could discuss a proposal to set up an asset reconstruction company (ARC) to take over banks’ stressed power assets, among other options, official sources told FE. However, the government is unlikely to direct the Reserve Bank of India (RBI), using power under Section 7 of the RBI Act for the first time, to give special relief to the power sector from the central bank’s February 12 circular that has specified that if a resolution plan was not found by August 27, insolvency proceedings must be invoked against defaulting companies.
Bail to Bhushan Steel ex-promoter: SC refuses to stay Delhi HC order
The Supreme Court on Wednesday refused to stay the Delhi High Court order that granted interim bail to Bhushan Steel’s erstwhile promoter Neeraj Singal, who was arrested on Thursday by the Serious Fraud Investigation Office (SFIO) for allegedly siphoning off more than Rs 2,000 crores from the loans availed by the company. A bench led by chief justice Dipak Misra said it will hear on Thursday the SFIO’s appeal opposing the interim bail granted to Singal by the HC earlier on Tuesday. Additional solicitor-general Tushar Mehta, appearing for SFIO, repeatedly sought a stay on the high court order for a day or two, saying funds were siphoned off by Singal using more than 80 shell companies.
MUDRA launches major impact study of loans to SMEs
Pradhan Mantri Mudra Yojana (PMMY), which has completed three years with a cumulative disbursal of about Rs. 6-lakh crores in loans to small businesses so far, is being reviewed. The Micro Units Development & Refinance Agency Ltd (MUDRA), an apex body for the scheme, is commissioning a massive field-based longitudinal impact assessment by an independent agency.
Lanco Babandh faces insolvency proceedings; NCLT appoints IRP
The National Company Law Tribunal, Hyderabad, has admitted an application for corporate insolvency resolution against Lanco Babandh Power Limited. NCLT Judicial Member Bikki Ravindra Babu admitted the petition by ICICI Bank for insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2016 and directed issue of notices to various parties, including the financial creditor, corporate debtor and the interim insolvency resolution professional.
With new rules, ‘fugitive economic offender’ law gets more teeth
Fugitive economic offenders will henceforth not find it all that easy to take shelter under ‘Code of Criminal Procedure 1973’ to keep the authorities at bay as regards confiscation of assets in search and seizure operations. The Centre has now come up with new rules detailing the procedure for search and seizure on fugitive economic offenders. The latest rules — Fugitive Economic Offenders (Procedure for Conducting Search and Seizure), Rules, 2018 — has superseded the rules framed in this regard in April this year under the fugitive economic offenders ordinance. The significant change, according to legal experts, is the dropping of reference to the ‘Code of Criminal Procedure 1973’. The earlier rules specified that ‘Code of Criminal Procedure’ will apply in search and seizure operations under Fugitive Economic Offenders Ordinance.
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