Shipping Ministry clears bail-out plan for stressed PPP projects at major ports
The Shipping Ministry has cleared a bail-out plan for stressed public-private partnership (PPP) projects at major port trusts along with a criteria to classify/identify stressed projects. To save PPP projects that have become stressed due to “abnormally high storage charges”, the Ministry has framed a three-point formula that includes extending the free storage period comparable to what nearby private ports are offering users “to optimize capacity utilization of the berth”. Accordingly, if the cargo is cleared within the free period as per the concession agreement signed with the port trust, no storage charge will be levied and hence no royalty need be shared with the port trust.
In 2nd petition before NCLAT, Mistry accuses Mumbai tribunal of bias
Coming down heavily on the National Company Law Tribunal (NCLT) Mumbai bench’s order that dismissed his plea against Tata Sons, Cyrus Mistry has alleged that the entire judgment of the tribunal is “vitiated by legal bias and suffers from lack of objectivity and impartiality”. In a second petition filed before the National Company Law Appellate Tribunal (NCLAT) in New Delhi, the ousted chairman of the salt-to-software conglomerate Tata Group alleged that incorrect recording of facts bolstered arguments against the Mistry family. Further, Mistry has also sought “expungement of several caustic remarks made against him”, sources briefed on the legal tangle told Business Line.
Supreme court admits BEL plea seeking setting aside of part of Tata Steel resolution plan
The Supreme Court on Tuesday admitted an appeal by Bhushan Energy (BEL), which is under insolvency resolution process, seeking setting aside of a part of Tata Steel’s resolution plan for its subsidiary Bhushan Steel (BSL) that terminated the power purchase agreements between the two companies. A bench led by Justice Ranjan Gogoi sought response from Tata Steel, SBI, Bhushan Steel, BEL Resolution Professional Navneet Kumar Gupta and others after BEL alleged that Tata Steel’s Resolution Plan envisages termination of the PPAs and certain related third-party contracts as these being “onerous” transactions.
Bhushan Steel ex-promoter to remain out on interim bail; SC transfers case to itself
The Supreme Court on Tuesday continued the Delhi High Court order that granted interim bail to Bhushan Steel’s erstwhile promoter Neeraj Singhal who was arrested by the Serious Fraud Investigation Office (SFIO) for allegedly siphoning off more than Rs 2,000 crore from the loans availed by the company. However, it stayed a part of the HC order that directed how the SFIO should conduct proceedings in the case. A bench comprising Chief Justice Dipak Misra and justices AM Khanwilkar and DY Chandrachud stayed the operation of the HC order but continued the interim relief granted to Singhal subject to conditions imposed by the HC for his release and additionally to report to the concerned officer of SFIO on every Monday and Thursday and on such other day or time as directed by the officer concerned.
Delhi High Court sets aside CVC’s graft inquiry against Walmart India
The Delhi High Court Tuesday set aside the Central Vigilance Commission’s inquiry into bribery allegations against American retail giant Walmart’s Indian arm. Justice Vibhu Bakhru allowed Walmart India’s plea challenging the CVC proceedings. “Writ petition is allowed. The enquiry is set aside,” the court said. CVC had initiated an investigation into the retail company after a US-based media house had reported that Walmart had allegedly bribed Indian government officials to obtain custom clearances and permission to open and run stores here. The high court had in an April 2016 interim order directed CVC not to file any criminal complaint against Walmart.
Decriminalizing corporate law to improve governance
An expert panel led by corporate affairs secretary Injeti Srinivas recommended a host of measures last week to make penal provisions in the Companies Act, 2013, less onerous in case of minor offences and to improve governance, especially in ensuring objectivity of independent directors. The move is expected to reduce the number of cases reaching company law tribunals. Mint takes a look at the nature of these recommendations and their impact on businesses. The panel noted that trivial cases pending for long in courts impose a serious cost to the economy.
J&J faulty hip implants: Govt forms panel to decide on compensation
The government has constituted a central expert committee and also asked states to form separate committees to determine the quantum of compensation in an 8-year-old case of patients undergoing corrective surgery after being fitted with “faulty” hip implants sold by a subsidiary of pharma giant Johnson and Johnson (J&J) Pvt. Ltd, in the first-ever initiative of compensation being paid for sub-standard treatment in the country. In 2017, the health ministry formed an expert committee under the chairmanship of Dr Arun Agarwal, former dean of Maulana Azad Medical College, which suggested at least 20 lakh be paid each patient.
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