Lok Sabha passes bankruptcy bill

May 6, 2016

New Delhi, May 6: The Lok Sabha on Thursday passed the new bankruptcy bill that proposes speedy closure of sick companies, fast action against defaulters and recovery of debt by banks.

LokSabhaThe Insolvency and Bankruptcy Code, 2015, the first major economic reform legislation this session, was passed with the support of Opposition Congress and other parties. This comes in the wake of a whopping Rs 9,000 crore loan default by liquor baron Vijay Mallya.

Replying to a debate on the bill, Minister of State for Finance Jayant Sinha said the government was also intending to enter into cross-border treaties with other countries to confiscate foreign assets of wilful defaulters.

Once the legislation is passed by both Houses of Parliament, the government will be able to repeal 21 different laws dealing with bankruptcy and insolvency which made the process lengthy and ineffective.

“This legislation is a transformational building block for the economy and it will make the entire process more transparent,” Sinha said. He said it will also help India move up the ladder in the World Bank’s ease of doing business ranking.

According to World Bank, winding up an ailing company takes four years in India and the average recovery is only one-fourth of a dollar.

At a time when banks are toiling with a huge non-performing assets, the passage of bankruptcy code will strengthen their hands, according to legal experts.

There are 7,686 wilful defaulters in India owing Rs 66,190 crore to public sector banks (PSBs), according to the information given by the government in Parliament. The total outstanding amount in top 100 non-performing accounts with PSBs is Rs 1.73 lakh crore as on December 2015.

At a time when banks are toiling with a huge non-performing assets, the passage of bankruptcy code will strengthen their hands, according to legal experts.

There are 7,686 wilful defaulters in India owing Rs 66,190 crore to public sector banks (PSBs), according to the information given by the government in Parliament. The total outstanding amount in top 100 non-performing accounts with PSBs is Rs 1.73 lakh crore as on December 2015.

To protect employees’ interest, the bill proposes that the money due to employees from provident fund, pension and gratuity funds should be safeguarded while declaring a firm insolvent and liquidating its assets.

The bill also proposes for disqualification of anyone declared bankrupt from holding public office and contesting elections. A debtor could be jailed for up to 5 years for concealing property or defrauding creditors under the new law.

At present, bankruptcy proceedings are governed by various laws such as Companies Act, SARFAESI Act and Sick Industrial Companies Act. The entire process of winding up is very long-winded, with courts, debt recovery tribunals and the Board for Industrial and Financial Reconstruction all having a say in the process.

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Agencies
June 20,2020

Lucknow, Jun 20: A media body on Saturday described as "an act of intimidation" the filing of an FIR in Uttar Pradesh against a journalist over a report on the impact of the lockdown on a village, saying it was part of an "established pattern" of harassment of independent scribes.

In a statement, the Media Foundation put on record its strong protest over the FIR filed by the Uttar Pradesh government against Supriya Sharma, executive editor of news portal Scroll.in.

The case was filed against Sharma for allegedly misrepresenting facts in a report on the impact of the lockdown in a village adopted by Prime Minister Narendra Modi, police sources had said on Thursday.

The FIR against Sharma and the Scroll editor-in-chief is an "an act of intimidation and a case of abuse of process", intended to discourage honest and critical reporting, the Media Foundation said.

The Media Foundation was started in 1979 with the aim of upholding freedom of speech, expression and information.

The FIR against Sharma is only the latest instance of similar coercive actions against professional journalists, part of "an established pattern of harassment and humiliation of independent journalists", it said,

"It is an unacceptable encroachment on press freedom," said the foundation, whose chairperson is veteran journalist Harish Khare.

The Media Foundation called upon the judiciary, and central and state governments to uphold the spirit of freedom of speech and expression as guaranteed in the Constitution.

Comments

True Indian
 - 
Sunday, 21 Jun 2020

people who speak truth will be send to jail and the people who speak lie will get award..we dont understant which religion they following...may be they following devil religion of RSS.....hindu brother must come out from deep sleep to protect the real value of hindusim...today all evil people in BJP will take protection for their evil deed by using hindu gods...

 

God clearely said in the quran, dont worship material bcoz one day some evil people will come and use this to control you and destroy you..

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News Network
June 25,2020

New Delhi, Jun 25: Diesel price in the national capital crossed the Rs 80 per litre-mark for the first time ever on Thursday as oil companies raised prices for the 19th day, taking the cumulative rate to Rs 10.63 a litre.

Petrol price, after a day's hiatus, was hiked by 16 paise and the increase in less than three weeks now totals Rs 8.66 per litre.

Petrol price in Delhi was hiked to Rs 79.92 per litre from Rs 79.76, while diesel rates were increased to Rs 80.02 a litre from Rs 79.88, according to a price notification of state oil marketing companies.

Diesel had for the first time become costlier than petrol in Delhi on Wednesday and has now crossed the Rs 80 per litre-mark.

Rates differ from state to state depending on the incidence of value-added tax (VAT).

However, diesel is costlier than petrol only in the national capital where the state government had raised local sales tax or VAT on the fuel sharply last month. It costs less than petrol in other cities.

The 19th daily increase in rates since oil companies on June 7 restarted revising prices in line with costs after ending an 82-day hiatus in rate revision, has taken diesel prices to fresh highs.

In 19 straight days, diesel price has gone up by Rs 10.63 per litre. Petrol price has been hiked on 18 occasions since June 7 and now totals to Rs 8.66 a litre.

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News Network
April 15,2020

New Delhi, Apr 15: Tablighi Jamaat leader Maulana Saad Kandhalvi has been booked for culpable homicide after some of the attendees of the religious congregation died due to coronavirus, police said on Wednesday.

Kandhalvi had organised the religious gathering at Nizamuddin Markaz last month against the social distancing protocol imposed by the Centre to curb the spread of the deadly disease.

An FIR was registered against the cleric on March 31 at Crime Branch police station on a complaint of the Station House Officer of Nizamuddin.

He was earlier booked for holding the event, police said.

“After several attendees of the Tablighi Jamaat event succumbed to coronavirus, we added IPC section 304 (culpable homicide not amounting to murder) in the FIR against the leader, a police official said.

Some foreigners who attended the event have also been booked for violation of visa norms.

In an audio message, Kandhalvi had said that he was exercising self-quarantine after several hundreds who visited the Tablighi Jamaat congregation at Nizamudddin Markaz tested positive for coronavirus.

The FIR registered against the Tablighi Jamaat event says that the Delhi Police contacted the authorities of Nizamuddin Markaz on March 21 and reminded them of the government order which prohibited any political or religious gathering of more than 50 people.

It says that despite repeated efforts, the event organisers failed to inform the health department or any other government agency about the huge gathering inside the Markaz and deliberately disobeyed government orders.

“The sub district magistrate of Defence Colony inspected the premises several times and found that around 1,300 people, including foreign nationals, were residing there without maintaining social distance. It was also found that there were no arrangements of hand sanitizers and face masks,” the FIR adds.

The Nizamudddin centre, attended by thousands, turned out to be a hotspot for spread of coronavirus not only in the national capital, but the entire country.

More than 25,500 Tablighi members and their contacts have been quarantined in the country after the Centre and the state governments conducted a "mega operation" to identify them.

At least 9,000 people participated in the religious congregation in Nizamuddin. Later, many of the attendees travelled to various parts of the country.

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