Fund diversion: Bhushan’s Neeraj Singal arrested by SFIO
A day before the National Company Law Appellate Tribunal (NCLAT) pronounces its judgment on the petition of Neeraj Singal, the erstwhile promoter and managing director of Bhushan Steel, challenging the eligibility of Tata Steel to bid for his bankrupt company, the Serious Fraud Investigation Office (SFIO) arrested him for allegedly siphoning off funds worth over Rs 2,000 crore. This is the first time that the SFIO has arrested a person for fraudulent activities. The investigation body under the ministry of corporate affairs (MCA) got powers to arrest people for violations of companies’ law last year. Singal was arrested in the national capital and has been sent to judicial custody till August 14, an MCA statement said.
Insolvency process: Supreme Court hits reset button on Jaypee Infratech
In a setback to the beleaguered Jaypee Group, the Supreme Court on Thursday directed that the bidding process for Jaypee Infratech (JIL) could commence afresh under the supervision of the reconstituted committee of creditors (CoC) that includes home-buyers, even as it explicitly barred the company, its parent Jaiprakash Associates (JAL) and their promoters from participating in the process. The top court also allowed the Reserve Bank of India (RBI) to direct the banks to initiate separate insolvency proceedings against JAL. A bench headed by Chief Justice Dipak Misra said the limitation period of 180 days to conclude the insolvency proceedings for JIL will commence from Thursday.
Sebi should seek power to tap phone calls: Panel on fair market conduct
A committee on fair market conduct has suggested that market regulator, Securities and Exchange Board of India (Sebi), should seek powers to tap telephones and other electronic communication devices to check insider trading and other frauds. Currently, Sebi has the power to only ask for call records, which includes numbers called and the duration of calls made. If the recommendation is implemented, Sebi will be able to listen in on the calls, as well as intercept other forms of electronic communication.
New export-oriented industrial policy to focus on textile, leather sectors
The proposed industrial policy, currently being prepared by the commerce and industry ministry, may have special provisions for manufacturing in the textile, leather sectors to leverage growth, and focus on spreading out export hubs across the country which are currently getting concentrated in a few states. It will also tie in existing government initiatives and serve as a focal point for various industry-wise policies. “It will absorb the 2011 national manufacturing policy and focus on technological issues of Industry 4.0, apart from furthering the government’s push of the Digital India initiative,” a senior Department of Industrial Policy and Promotion (DIPP) official said.
3 tax notices under foreign black money law slapped on Nirav Modi: Revenue department
The Income Tax department has slapped three notices under the foreign black money law against diamond trader Nirav Modi, involved in Rs 14,000 crore PNB fraud cases, for allegedly holding illegal assets abroad. “Three notices u/s 10(1) of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, issued against Nirav Modi,” the Revenue Department said in an action taken report to the Standing Committee on Finance. An arrest warrant has been issued against Modi. “Supplementary prosecution complaint filed against 31 persons/individuals/entities u/d 276C (1), 227A and 278 of the Income Tax Act,” it added.
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