NCLT admits Ericsson’s bankruptcy plea against R Com, subsidiaries
The dedicated bankruptcy court has admitted three insolvency petitions filed against Reliance Communications and its subsidiaries, by telecom gear maker Ericsson, dealing a severe blow to the Telco’s plans of selling most of its wireless units to Reliance Jio Infocom (Jio). The decision, which came after nearly eight months since the Swedish telecom equipment maker moved the National Company Law Tribunal’s (NCLT) Mumbai bench to recover Rs 1150 crore in dues, effectively makes the Anil Ambani owned carrier bankrupt, the second such after Chennai-based Aircel.
IDBI Bank Fraud Case: Probe report to seal fate of top bankers
In sync with the approach it adopted in the $2-billion fraud case at Punjab National Bank (PNB), the government will ask for the removal of top bankers in connection with the alleged Rs 600-crore IDBI Bank loan fraud case if their involvement is established by the probe agency, a senior official told FE. Former IDBI Bank chief Kishor Kharat — who is currently the managing director (MD) and chief executive officer (CEO) of Indian Bank — and current Syndicate Bank MD and CEO Melwyn Rego — who was earlier the deputy MD of IDBI Bank — were booked by the CBI late last month over a controversial loan provided to companies of former Aircel promoter C Sivasankaran that has turned non-performing asset.
NCLT clears decks for Tata’s acquisition of Bhushan Steel
The National Company Law Tribunal (NCLT) on Tuesday approved Tata Steel bid for Bhushan Steel Limited (BSL), clearing the deck for the bankrupt mill’s acquisition by India’s oldest maker of the primary infrastructure alloy. The NCLT also dismissed a plea filed by the employees of Bhushan Steel opposing Tata Steel’s bid. It also rejected another petition by engineering and construction major L&T, an operational creditor to Bhushan Steel: L&T had sought priority in repayment of debt in the resolution process.
Nirav Modi scam: US court wants PNB staff probed
A New York court has called for an investigation into the role of Punjab National Bank employees in the alleged fraud involving Nirav Modi, before deciding on bankruptcy proceedings against three US-based companies of the diamond jeweler. The Bankruptcy Court for the Southern District of New York in an order dated May 4 said investigations should be carried out and employees of the bank be investigated. ET had first written on May 8 that the court has appointed Alvarez & Marsal to conduct the investigations into the alleged fraud by Modi before deciding on bankruptcy proceedings against his companies Firestar Diamond Inc, A Jaffe Inc and Fantasy Inc. The court has also told the investigators to look into the role of PNB.
Lender Edelweiss turns bidder for shipbuilder Bharati Defense
Edelweiss Asset Reconstruction Co Ltd, which holds close to 80 per cent of the debt of Bharati Defense and Infrastructure, has submitted a bid to buy the ailing shipbuilder under the Insolvency and Bankruptcy Code (IBC). This makes it the first such case of a lender putting in a bid for a company that owes it money. The bid, including the resolution plan submitted by Edelweiss ARC, was approved by the Committee of Creditors, which mainly comprises Edelweiss.
Food safety body looking at global norms to finalize labeling regulations
The Food Safety and Standards Authority of India (FSSAI) is looking at global models adopted by various countries for labeling standards of packaged foods. This is being done before the Food Safety and Standards (Labelling and Display) Regulations, 2018, is finalized by the government. In April, the regulator released the draft of the labeling regulations which has proposed front-of-the- pack nutritional information, besides red color coded labels for foods which have high levels of fat, sugar and salt content. Some food companies have raised concerns about the red color-coded labels.
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