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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News Network
June 27,2020

New Delhi, Jun 27: Fuel prices were hiked by the oil marketing companies for the 21st day in a row on Saturday. Petrol and diesel will now cost Rs 80.38/litre and Rs 80.40/litre respectively in the national capital.

The price of petrol is increased by Rs 0.25 per litre while that of diesel by Rs 0.21 per litre.
Rates differ from state to state depending on the incidence of value-added tax (VAT).

Notably, oil marketing companies have been adjusting retail rates in line with costs after an 82-day break from rate revision amidst the COVID-19 pandemic. These firms on June 7 restarted revising prices in line with costs.

The Congress party had called the increase in the price of petrol and diesel 'unjust', 'thoughtless' and demanded from the Central government to roll back increase with immediate effect and pass on the benefit of low oil prices directly to the citizens of this country.
In an official statement, the Congress Working Committee (CWC) had said that no government should levy and impose such unacceptable strain on its people.

Before the nation entered the lockdown, the average price of petrol and diesel in Delhi was Rs 69.60 per litre and Rs 62.30 per litre respectively.

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News Network
April 5,2020

New Delhi, April 5: People were seen buying diyas and candles across the country to light them at 9 p.m. on Sunday to fight the "darkness of coronavirus" as requested by Prime Minister Narendra Modi.

Although the country is under a lockdown and all the shops barring those selling essential items are shut, but a number of makeshift roadside shops and carts have cropped up selling earthen lamps or diyas at various places.

The earthen lamps, along with other 'puja samgari', are also sold near various temples. Those shops also opened on Sunday.

Gatherings at the temples and other religious places too are barred.
Those who did not find diyas in their localities contended with candles available at the local general stores.

Prime Minister Narendra Modi had on April 3 appealed to people in a televised address to light diyas and candles on April 5 at 9 pm to fight the darkness spread by coronavirus pandemic.

"Friends, amidst the darkness spread by the corona pandemic, we must continuously progress towards light and hope. We must defeat the deep darkness of the crisis by spreading the glory of light in all four directions," said the Prime Minister in a video message.

"And that is why, this Sunday, on April 5, we must all together, challenge the darkness spread by the corona crisis, introducing it to the power of light. On this day, we must awaken the superpower of 130 crore Indians. We must take the super resolve of 130 crore Indians to even greater heights," Modi said.

He asked the people to turn off all the lights in their homes and stand at doors or balconies and light candles or diyas, torches or mobile flashlights for 9 minutes on April 5.

"In that light, in that lustre, in that radiance, let us resolve in our minds that we are not alone, that no one is alone! 130 crore Indians are committed, through a common resolve!" he said.
PM Modi's call to light diyas, torches or mobile flashlights amid the lockdown has proved to be a boon for shopkeepers selling diyas and candles.

"Sales of diyas have increased to 50 per cent and we also got orders. It has happened because of Modi ji's appeal. We are with him in this," Ram Ravi Kumar, a shopkeeper in Delhi told news agency.

Vikas Kumar, a resident of Patna, said, "I have bought 50 diyas for today. PM Modi had said that people have to light the diyas for nine minutes after switching off light at home."
Modi has asked citizens to not assemble anywhere while participating in this programme and emphasised on the importance of social distancing to prevent coronavirus spread.

Meanwhile, the number of positive cases of coronavirus in the country continues to surge. As per the Ministry of Health and Family Welfare, the total number of confirmed COVID-19 cases is 3,374 with 79 deaths.

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News Network
February 21,2020

Patna, Feb 21: The country is paying the price for failure to send Muslims to Pakistan and bring Hindus to India after the Islamic state came into being at the time of Independence, Union minister Giriraj Singh has said, triggering a fresh controversy.

The BJP leader made the remark in Purnea district in the Seemanchal region of Bihar which has a sizeable Muslim population and where the Begusarai MP was canvassing in favor of the Citizenship (Amendment) Act.

Highlighting the need for such a legislation, he told reporters late Thursday "when our forefathers were fighting for Independence from British rule, Jinnah was pushing for the creation of an Islamic state".

"Our forefathers, however, committed a mistake. Had they ensured that all our Muslim brothers were sent to Pakistan and Hindus brought here, the need for such a move (CAA) would not have arisen. This did not happen and we have paid a heavy price for it," the outspoken BJP leader said.

The CAA, which seeks to fast-track granting citizenship to non-Muslim refugees from Pakistan, Bangladesh and Afghanistan who might have fled their home countries because of religious persecution, has become a major bone of contention since it is feared that a country-wide National Register for Citizens (NRC) may follow.

The Narendra Modi government, which had formerly hinted that a country-wide NRC was on the anvil, seems to have put it on the backburner though a section of citizens across the country, especially Muslims, have been organizing protests out of fear that, if implemented, the NRC may result in a large number of people becoming stateless.

Singh has often been in the crosshairs of the opposition for placing his foot in the mouth. This time, however, his words were frowned upon even by NDA ally Lok Janshakti Party, founded by his cabinet colleague Ram Vilas Paswan and now headed by his son Chirag Paswan.

The young LJP chief, who kicked off a state-wide "Bihar First-Bihari First" yatra here Friday morning, to project the NDAs progressive face ahead of the assembly polls due later this year, expressed strong disapproval of Singh's utterance and noted the coalition had to suffer in the Delhi polls because of "divisive" remarks by BJP leaders.

"We are an NDA constituent but many times our coalition partners say things which the LJP does not at all agree with. This one (Giriraj Singhs statement) is such an example. Had a person of my party spoken in this fashion, I would have taken responsibility and acted," Paswan said.

He said he had placed his view repeatedly on record that the coalition had to suffer on account of divisive remarks, Paswan said in apparent reference to inflammatory speeches by BJP leaders like Union minister Anurag Thakur and BJP MP Parvesh Verma, among others.

"The people of Delhi voted on the basis of performance. We wish they do so again in Bihar and real issues don't get drowned in political cacophony.

"The Nitish Kumar government has accomplished a lot, though much more needs to be achieved. We wish to reach out to people with our vision for the future, said Paswan, before he embarked on the yatra on a customized bus decorated like a chariot in front of which he offered prayers and smashed a coconut.

Meanwhile, Giriraj Singh who loves to wear his Hindu nationalism on the sleeves was busy joining issue with Asaduddin Owaisi's AIMIM which has been under attack for controversial remarks by its leader Waris Pathan.

Sharing video of an old speech by Owaisis brother Akbaruddin which had landed him in jail, besides Pathan's recent remark, Singh asked the opposition RJD-Congress combine in Bihar and the "tukde tukde gang" whether they wanted to "convert India into Pakistan".

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