MahaRERA issues recovery warrants against 12 builders
In a first, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued recovery warrants against 12 real estate developers. These warrants have been issued by the authority after the complainant home buyers approached MahaRERA on several occasions asking for execution of earlier orders against these builders directing refund of money. “We have issued warrants against 12 builders in Mumbai, Thane and Pune for recovery under section 40 (1) of RERA Act that pertains to recovery of interest, penalty and compensation as a land revenue,” Vasant Prabhu, Secretary MahaRERA, told ET.
Deadlines likely for turnaround of PSU Banks under RBI watch
The government is looking to impose strict deadlines on banks that are under the Reserve Bank of India’s watch to implement a turnaround plan. This will include fixed targets for recoveries of bad loans, sale of non-core assets and a differentiated lending road map with each bank specializing in a particular area. “These approved targets would be ratified by the boards of the respective banks and we expect a faster turnaround in some cases,” said a finance ministry official. The finance ministry is on Thursday scheduled to review the performance of around 11 banks under RBI’s prompt corrective action framework.
Lenders face 95% haircut as Tecpro Systems’ debt mounts to Rs 75 billion
The resolution of Rs 75-billion debt of Tecpro Systems, a material handling company, submitted to the National Company Law Tribunal (NCLT) early this month will test the insolvency process if lenders have to take a huge haircut because promoters have walked away with funds prior to bankruptcy filing. On May 3, the resolution professional (RP) initiated action under Section 66 and section 67 of the Insolvency and Bankruptcy Code (IBC) at the NCLT against Tecpro’s erstwhile promoters for siphoning off funds from the company.
Essar Steel lenders to seek guidance from NCLAT on Mittal offer
Lenders to Essar Steel will approach the National Company Law Appellate Tribunal (NCLAT) on Thursday to seek its guidance on the Rs 70 billion conditional offer made by ArcelorMittal. They will also seek direction on whether to open the second round of bids for the bankrupt steel firm, in which Vedanta and JSW Steel had also participated. Numetal and ArcelorMittal had moved the NCLAT against a previous order of the National Company Law Tribunal’s (NCLT’s) Ahmadabad bench for its observations on their first-round bids made in February.
Over 1,600 merger cases pile up before NCLT as insolvency takes precedence
With the Insolvency and Bankruptcy Code (IBC) gaining precedence before the National Company Law Tribunal (NCLT), merger and amalgamation cases are beginning to pile up before the quasi-judicial body set up to fast-track issues related to domestic corporate. Industry players say several companies, particularly small- and medium-sized, which had requisitioned for approval of mergers, have been facing challenges as the Bench is preoccupied with IBC cases.
Binani Industries offers to clear all claims of debtors
Binani Industries, which holds 98.4 per cent share in debt ridden Binani Cement, today offered to clear the 100 per cent claims of creditors at the National Company Law Appellate Tribunal. In a fresh petition filed before the NCLAT, it submitted that the offer will clear the dues of financial creditors, operational creditors and others within two weeks. The counsel appearing for Binani Industries said the settling of the creditors’ claims will bring the company out of insolvency proceedings.
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