NCLAT refuses to stay Tata Steel’s Bhushan Steel buy
The National Company Law Appellate Tribunal (NCLAT) on Monday refused to stay Tata Steel’s acquisition of debt-laden Bhushan Steel under the corporate insolvency resolution process though it admitted promoter Neeraj Singal’s plea challenging the entire resolution process and the sale. Singal, who had around 22% stake in the company as on March-end, also said that Tata Steel was not eligible to bid under section 29 (A) (d) of the Insolvency and Bankruptcy Code (IBC) that bars a company convicted for any offense punishable with imprisonment for two years and more.
CDR cell seeks clarity on its role from RBI
The fate of the once-crucial corporate debt restructuring (CDR) cell hangs in the balance. The cell has sought clarity from the Reserve Bank of India (RBI) regarding its role after the central bank dissolved all restructuring schemes of the past through its February 12 notification, two senior bankers told FE. According a senior IDBI Bank official, the cell has written to RBI seeking clarity on its new areas of work after the circular, but the central bank has not yet responded.
Shell firms: Income Tax department to file pleas in NCLT to extract tax due
The Income Tax (I-T) Department is an “aggrieved creditor” to many de-registered shell companies and will petition the National Company Law Tribunal (NCLT) to recover tax dues of crores of rupees. The Central Board of Direct Taxes (CBDT) has directed the I-T Department to form a special team of officers to complete the task of filing these petitions in various NCLT benches across the country by this month-end, and has written to the Ministry of Corporate Affairs seeking its help.
Three Fortis board members resign ahead of EGM to remove them
Three members of the Fortis Healthcare board, which favored an offer for the company from the Munjal-Burman combine, resigned ahead of an extraordinary general meeting called on Tuesday to decide their fate. Lt Gen Tejinder S Shergill turned in his resignation on Sunday, saying there were sufficient members on the board, and he was followed by Harpal Singh and Sabina Vaisoha. Brian W Tempest, who shareholders also sought to remove, remains on the board along with recently inducted Rohit Bhasin, Suvalaxmi Chakraborty, Ravi Rajagopal and Indrajit Banerjee.
Finmin has no plan to ask RBI to relax PCA
The finance ministry has no plan to ask the Reserve Bank of India (RBI) to relax the prompt corrective action (PCA) framework for stressed public sector banks (PSBs), a top official said on Monday. Instead, the ministry has directed the 11 stressed PSBs that are under the PCA to work hard on their turnaround plans by the reforms agenda given to them, including focusing more on core competencies, adopting differentiated business strategy, selling non-core assets and rationalizing loss-making operations.
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