SC orders auction of Unitech properties to refund money to homebuyers
The Supreme Court on Thursday asked a panel headed by former Delhi High Court judge Justice S N Dhingra to proceed with the auction of real estate major Unitech Ltd’s unencumbered properties at Agra and Varanasi in Uttar Pradesh and Sriperumbudur in Tamil Nadu to refund money to home buyers. The top court had earlier set up the three-member panel for “expeditious” auction of over 600 acres of land of the real estate firm for refunding money to home buyers who do not want possession of their homes or flats. A bench headed by Chief Justice Dipak Misra also directed Unitech Ltd to submit a list of all properties of the company, its subsidiaries and personal properties of all the directors on July 9. The bench, also comprising Justices A M Khanwilkar and D Y Chandrachud asked the Justice Dhingra panel to complete the process of auctioning the land properties of the firm at Agra within four weeks from Friday.
Banks to cease cryptocurrency transactions from July 10 after RBI directive
Commercial banks in the country will no longer be able to transact in cryptocurrencies like Bitcoin from Friday in view of a Reserve Bank of India (RBI) directive in April. In a bid to protect consumers and curb money laundering and other financial irregularities, the RBI had, on April 5, barred all its regulated entities, including banks, from dealing in virtual currencies like bitcoins, following its earlier multiple warnings on their risks. Regulated entities already providing services to any individual or business dealing in digital currencies had been given three months to exit the relationship. Cryptocurrency trade in rupees will stop from midnight, while exchanges or cryptocurrency companies will now be unable to avail loans or hold bank accounts. Investors would only be able to do peer-to-peer transactions with a fellow trader and such transaction would only be possible in the form of exchange with any another cryptocurrency.
UK High Court allows seizure of Vijay Mallya’s UK assets
A UK High Court judge has issued an order in favor of a consortium of 13 Indian banks, granting permission to the British Enforcement Officer to enter the properties of liquor baron Vijay Mallya in Hertfordshire, near London. He is fighting extradition to India on fraud and money laundering charges. The order permits the UK High Court Enforcement Officer and his agents entry to Ladywalk and Bramble Lodge in Tewin, Welwyn, where the 62-year-old Mallya is currently based. However, it is not an instruction to enter, which means the banks have the option to use the order as one of the means to recover estimated funds of around £1.14 billion. “The High Court Enforcement Officer, including any enforcement agents acting under his authority, may enter Ladywalk, Queen Hoo Lane, Tewin… including all outbuildings of Ladywalk and Bramble Lodge to search for and take control of goods belonging to Mallya,” notes the order by Justice Byran, dated June 26.
Information to be made public even if seeker is dead
After a spate of mysterious deaths of whistle blowers and RTI activists, the Central Information Commission has decided that it would not stop hearing the cases and would put information in the public domain even if the seeker is dead. The transparency watchdog has decided that a complaint or appeal filed before it would not “abate” even after the death of an information seeker. The decision has come after detailed discussions in the full commission meeting last month. The commission in an order clarified: “The Commission has decided that in case of death of the appellant/complainant, the case will be heard as usual as second appeal/complaint and the decision put up on the website.” There has been a lot of flip-flop on the issue of abatement of appeal. Section 24 of Central Information Commission (Management) Regulations 2007 stated: “The proceedings pending before the Commission shall abate on the death of the appellant or complainant.” However, this was struck down by the Delhi high court in 2010. In 2011, the commission laid down that it would hear a case only if a human rights activist or a nonprofit organization complained that a person had been killed as he was seeking sensitive information. A senior CIC official, who did not wish to be identified, told ET: “Now we don’t wait for any complaints. We treat the case in a usual manner. The quest for information continues even after death.”
Project Sashakt: Banks give shape to inter-creditor pact for bad assets
Banks have finalized an inter-creditor agreement and are working on details of an asset management company as part of a five-pronged mechanism they have identified to resolve the issue of mounting non-performing assets (NPAs) under Project Sashakt. Banks will now take inter-creditor agreement to their respective boards for approval and it’s expected to go live later this month, Punjab National Bank chairman Sunil Mehta said. Under Project Sashakt, financial institutions will enter into an inter-creditor agreement to authorize the lead bank to implement a resolution plan in 180 days. The agreement is the bedrock of the bank-led resolution approach (BLRA) for loans between Rs 50-500 crore. This inter-creditor agreement will be a legal document and enforceable in any court of law, Mehta said. “It makes sure that there is effective, good communication amongst banks and if anyone has a difference, then they will resolve it among themselves,” he said. Mehta headed a committee of bankers that drew up the NPA resolution strategy.
Ecommerce subgroup suggests FDI in inventory model
A government-industry subgroup on ecommerce has recommended allowing foreign investment in inventory-led online retailers stocking products made in India, as part of a new ecommerce policy under discussion. The policy is expected to set a new definition for ecommerce that will pin greater liability and responsibility on online retailers, which may have to seek government accreditation, said people familiar with the developments. Ecommerce companies may also have to integrate with National Consumer Helpline to address consumer issues. A group of nine secretaries led by commerce secretary Rita Teaotia will meet on Friday to discuss data localization, FDI in inventory-based online retail, consumer protection and emerging technologies as India seeks to finalize an ecommerce policy by year-end.
HC seeks Centre’s reply on Vodafone plea on jurisdiction over int’l arbitration
The Delhi High Court today sought the Centre’s response on a plea by telecom major Vodafone challenging an order that the high court has jurisdiction to entertain a plea against the international arbitration initiated by the company against India in connection with a tax demand of Rs 11,000 crore. A bench of Justices G S Sistani and Sangita Dhingra Sehgal issued notice to the Centre on a cross-objection filed by Vodafone in a pending appeal of the government against a single judge’s May 7 order dismissing its plea against the international arbitration initiated by the company. The bench listed Vodafone’s plea and the Centre’s appeal for hearing on September 11. Vodafone, represented through advocate Anuradha Dutt, sought to set aside the findings in the May 7 order to the extent that the high court has jurisdiction to entertain government’s suit against international arbitration and against the company.
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