Insolvency: NCLT asks for selection details in Binani Cement case
A single-member judge in the Kolkata bench of the National Company Law Tribunal (NCLT) has ordered the resolution professional for Binani Cement to submit by March 26 the criteria and the procedure for selection of the bidder, minutes of meetings, and a timeline of proposals and decisions taken after counsel for Binani Cement and UltraTech Cement mounted their opposition to the way the resolution plan had been concluded. The plan approved by resolution professional Vijay Kumar Iyer resulted in the Dalmia Bharat Cement-led consortium winning the bid for Binani Cement.
Insolvency resolution stumbles on 4 key issues raised by prospective buyers
With prospective buyers of stressed assets challenging the interpretation of clauses in the Insolvency and Bankruptcy Code (IBC) in four key areas, the resolution of many of them would depend on the final decisions of the National Company Law Tribunal (NCLT) or through amendments to the IBC by the government. Experts, however, say the plethora of legal cases being filed is not unusual. They say the new law is superior to a winding-up petition which was filed by creditors under the Companies Act. The key difference is that it wasn’t time-bound though an official liquidator was appointed.
CBI books Totem Infrastructure in Rs 1,394 cr bank loan fraud case
The CBI has booked a Hyderabad-based construction and infrastructure company for allegedly defrauding a consortium of eight banks to the tune of over Rs 1,394 crore, officials said today. Totem Infrastructure Ltd, which worked as a sub-contractor for several major infrastructure companies, and its promoters Tottempudi Salalith and Tottempudi Kavita were named in a CBI FIR, registered on the basis of a complaint from the Union Bank of India one of the eight banks, they said. The company figured in the list of the biggest tax defaulters released by the Income Tax Department in 2015 with an outstanding tax of over Rs 400 crore.
Sebi to focus on big bang market reforms at a board meeting
Capital markets regulator Securities and Exchange Board of India (Sebi) will consider closely supervising the work of auditors, independent valuers and compliance secretaries and penalize them for lapses at its board meeting on 28 March, three people with direct knowledge of the matter said. The Sebi board will also consider proposals such as making algorithmic trading cheaper and more accessible, and reducing fees charged by mutual funds to unit holders.
Supreme Court orders status quo for RCom asset sale to Reliance Jio
The Supreme Court on Thursday ordered status quo to be maintained in the sale of Anil Ambani-led Reliance Communications’ airwaves, fibre and towers to Reliance Jio for Rs240 billion. A consortium of lenders, led by State Batax-freedia (SBI), had challenged the stay order of the National Company Law Tribunal (NCLT) on the proposed sale. The Supreme Court refused to raise the stay order or revoke the Bombay High Court March 8 order, which had dismissed an RCom plea against it. The NCLT had been moved by Swedish telecommunication equipment maker Ericsson.
Govt paves way for a tax-free gratuity of up to Rs 20 Lakh
Parliament today passed Payment of Gratuity (Amendment) Bill 2017 paving the way for doubling the limit of tax free gratuity to Rs 20 Lakh and empowering the government to fix the ceiling of the retirement benefit through an executive order. The Rajya Sabha passed the bill, which was approved by the Lok Sabha last week, on March 15.Besides enabling the central government to fix the ceiling of tax free gratuity, the bill will also empower it to fix the period of maternity leave through executive order. It also notifies the period of maternity leave as part of continuous service and proposes to empower the central government to notify the gratuity ceiling from time to time without amending the law.
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