SFIO gives reports on 30 Nirav Modi firms; inspects NuPower Renewables
The Serious Fraud Investigation Office (SFIO) and regional directors under the Ministry of Corporate Affairs (MCA) have given reports on 30 companies (and related parties) of Nirav Modi, main accused in the Rs 140-billion Punjab National Bank (PNB) fraud. Also, a regional director (RD) has commenced an inspection of NuPower Renewables and five other companies linked to the ICICI Bank controversy. While SFIO has completed its probe into six companies, RDs have done so in 24, Minister of State for Corporate Affairs P P Chaudhary told Business Standard.
IBBI Regulation: Resolution professionals directed to charge fee that is ‘reasonable’
Amid allegations that some resolution professionals (RPs), appointed for insolvency resolution for bankrupt firms, are charging “exorbitant fees”, the Insolvency and Bankruptcy Board of India (IBBI) has come out with a regulation to ensure that fees payable to an insolvency professional and expenses incurred by him during the corporate insolvency resolution process (CIRP) are ‘reasonable’. Issuing a circular on the ‘Fee and other Expenses incurred for Corporate Insolvency Resolution Process’, the bankruptcy board has said an insolvency professional (IP) must ensure that not only fee payable to him is reasonable, but also other expenses incurred by him are reasonable.
PSU bankers’ union challenges RBI’s February 12 bankruptcy circular
The biggest union of state-run banks has filed a writ petition in the Delhi High Court challenging the Reserve Bank of India’s (RBI’s) controversial February 12 circular that bankruptcy proceedings will kick in 180 days after a borrower misses a payment without allowing even a day’s extension. The All India Bank Officers’ Confederation (AIBOC), which represents 3 lakh supervisory staff and officers in public-sector banks, said the provision will cause a loss of Rs 1 lakh crore, threatening the viability of banks and consequently the livelihood of its members. AIBOC wants the high court to quash the circular.
Stronger corporate governance is need of the hour, says BSE Chairman
BSE Chairman S Ravi on Wednesday stressed the need for a “stronger” corporate governance framework to ensure efficient functioning and curbing malpractices. According to him, governance can be strong if the role between functional directors and independent directors of the board is clear. The BSE Chairman’s comment comes at a time when a number of entities, including Punjab National Bank and Fortis, have come under the regulatory scanner on account of alleged irregularities and lapses pertaining to corporate governance.
Fortis valuation may take hit, bidders revisit offers over law firm report
Fortis Healthcare Ltd (FHL) has extended the deadline for submitting binding offers till June 28. Prospective bidders, however, are now re-visiting their valuations of the hospital major in the light of recent revelations by law firm Luthra and Luthra. Two bidders said they could revise their offers downwards, since they were wary of the implications of the investigation, and according to their knowledge, Fortis had posted weak fourth-quarter numbers. The company had postponed the announcement of the results to June 25, citing the need for additional time to consider certain aspects of the internal investigation report. The results were to be released on May 30.
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