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
March 15,2020

Bhopal, Mar 15: Madhya Pradesh Chief Minister Kamal Nath on Saturday sought the intervention of Home Minister Amit Shah for the "release" of 22 Congress MLAs in Karnataka, saying they had been held "captive" and were under "pressure".

In a letter to Shah, Chief Minister Nath said the BJP's demand for floor test had "no meaning" till the MLAs do not reach the state.

He said that the MLAs do not have any means of personal communication and all efforts to reach them have failed.

In the four-page letter, Nath said Governor Lalji Tandon had told him that the responsibility of security of those who will come to meet the Speaker should be with the CRPF but as the Chief Minister, it is his duty to ensure the security of all residents of the state including MLAs.

"I assure you that if these 22 MLAs are released by the Karnataka Police, then I will ensure maximum security by the state government so that they are able to convey their views without fear and take part in the proceedings of the assembly," Nath said.

He urged Shah to use his powers as Home Minister so that 22 MLAs safely reach Madhya Pradesh and discharge their responsibilities "without fear or greed" in the assembly session beginning on March 16."

Chief Minister Nath said that he had been informed that the MLAs had been deprived of all personal communication facilities.

He said that a father was not allowed to meet his son and two ministers who were accompanying the father of the legislator were "arrested" and manhandled by the Karnataka Police.

"My efforts to reach them as also of their relatives have failed which proves my apprehension that they are under captivity."

He said the videos released in the name of MLAs to "mislead" the people of the state were similar. "This proves that all these MLAs are under pressure and they are being forced to act in a particular way," he said.

Nath said that he was drawing Shah's attention to the developments in the state since March 3 which were aimed at destabalising the government.

He said three Congress MLAs, one BSP, and one independent MLA were taken to Gurugram and two ministers of his government were able to "rescue" the BSP legislator.

He said the three Congress MLAs and the independent MLA were later taken to Bengaluru by the BJP. He said a BJP MLA and a party functionary accompanied them.

"Later, 19 Congress MLAs were taken to Bengaluru in chartered planes and the arrangement was done by the BJP," he said, adding that they were accompanied by two former BJP MLAs and a former minister.

Kamal Nath said the number of MLAs in Bengaluru grew to 22 and they are all in the protection of the Karnataka Police.

He said some BJP leaders from Madhya Pradesh can be seen in pictures of the place where the MLAs were staying. "All reported expenses on these MLAs are being borne by the BJP," he said.

He said the BJP leaders had told the media about the resignation of MLAs and they had not presented themselves before the assembly Speaker.

Kamal Nath said he was concerned about the security of the MLAs and had written to the Governor earlier.

"You would agree with me that the demand for floor test has no meaning till the 22 MLAs are in captivity. This is unprecedented that the BJP is demanding floor test and several Congress MLAs have been kept outside the state,' he said.

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News Network
July 10,2020

Lucknow, Jul 10: Samajwadi Party supremo Akhilesh Yadav on Friday raised questions on gangster Vikas Dubey's encounter killing after an accident, saying the car did not topple but it was an effort to save the government from toppling if facts came to light.

Dubey was killed in an encounter after a police vehicle carrying him from Ujjain to Kanpur met with an accident and he tried to escape from the spot, police said.

"Darasal ye car nahi palti, raj khulne se sarkar palatne se bach gayi hai," (Actually, the car did not topple. It is an effort to save the government which would have toppled if facts came to light)," Yadav said in a tweet in Hindi.

Senior Superintendent of Police (Kanpur) Dinesh Kumar P said that the accident took place in the morning when it was raining heavily and the police vehicle overturned near Kanpur.

Eight policemen, including DSP Devendra Mishra, were ambushed in Bikru village in Chaubeypur area of Kanpur when they were going to arrest Dubey and fell to bullets fired from rooftops shortly after midnight on July 3.

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Agencies
July 13,2020

New Delhi, Jul 13: The Land & Development Office, which comes under the Union Ministry of Housing and Urban Affairs, has sent a notice to news agency PTI, demanding it to cough up more than Rs 84 crore as penalty. The notice dated July 7 says that the penalty has been imposed due to "breaches" at its office in Delhi.

The notice that sought Rs 84,48,23,281 argues that "the less will be pleased to regularise the breaches in the premises temporarily up to 14.07.2020 and withdraw the right of re-entry of the premises subject to the following conditions being fulfilled by you within 30 days from the date of issue of this letter."

The notice also stipulates that the news agency needs to give an undertaking on non-judicial stamp paper stating that it will pay the difference of "misuse/damage charges" if the land rates are revised with effect from 01.04.2016 by the government and will also remove the "breaches" by 14.07.2020 or get them regularised by paying charges.

The notice also warns that further action to execute the deed has to be subject to complete payment and putting the premise to use according to the masterplan.

The Land & Development Office so warned that an additional 10 per cent interest may need to be coughed out by PTI if it fails to furnish the concerned amount within the stipulated time period.

Additionally, if the news agency fails to comply with the terms within the said period, the concession will be withdrawn. In other words, they will have to pay the penalty up to the actual date of payment then and will also be subject to actions.

This stern notice for alleged violations by PTI comes closely on the heels of national broadcaster Prasar Bharati locking horns with PTI over its reportage that it called "anti national".

Prasar Bharti had recently sent a letter threatening to end its "relationship" with PTI after it carried an interview of Chinese Ambassador Sun Weidong, where he blamed India for the India-China violent standoff that saw 20 Indian bravehearts getting martyred.

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