India News

IBC Amendment Bill 2018 passed, puts home buyers at par with creditors

Published

8 years ago

August 1, 2018

IBC Amendment Bill 2018 passed, puts home buyers at par with creditors

The Lok Sabha on Wednesday, August 1, passed the Insolvency and Bankruptcy Code (Second Amendment) Bill 2018.

The Bill amends the Insolvency and Bankruptcy Code, 2016 to clarify that allottees under a real estate project should be treated as financial creditors. This aims to provide relief to home buyers who, as financial creditors, will be able to decide the future of defaulting builders alongside their lenders.

The voting threshold for routine decisions taken by the committee of creditors has been reduced from 75 per cent to 51 per cent.

For certain key decisions, this threshold has been reduced to 66 per cent. This makes it easier for banks to agree on salvaging a failed firm from being wound up by lowering the votes needed for taking critical decisions to 66% from 75%, reported Live Mint.

The Bill also allows the withdrawal of a resolution application submitted to the National Company Law Tribunal under the Code. This decision can be taken with the approval of 90 per cent of the committee of creditors.

The demand from the main opposition party, the Congress, to refer the proposed amendments to a parliamentary panel was not accepted.

Interim finance minister Piyush Goyal, who moved the Bill, said the financial creditor status would help home buyers protect their hard earned savings and that the changes in voting requirements were based on global best practices.

“We looked at global best practices. In the UK, for example, a resolution plan is accepted if 51% of lenders agree. The government decided that some provisions need concessions so that more stressed assets get resolved,” the minister said.

Congress members, however, alleged that lowering the votes needed to clear corporate revival plans to 66% would benefit investors who could buy stressed assets for a song. Congress MP M Veerappa Moily demanded that the bill be referred to a parliamentary panel for review, while P Venugopal of the All India Anna Dravida Munnetra Kazhagam (AIADMK) said it did not specify whether home buyers would be treated as secured creditors.

In his reply to the discussion on the Bill, Goyal said liquidation of companies was the last option and that the intention of the law is to save enterprises wherever possible considering the need for saving jobs.

“Whether home buyers are secured or unsecured creditors will be decided on a case to case basis by the resolution professional and the courts,” said Goyal. The minister also said there was no plan to denationalize any public sector bank.

Opposition alleges move to benefit Reliance

Leader of the Congress Mallikarjun Kharge and several others alleged that the ordinance was brought to facilitate the acquisition of Alok Industries by Reliance Industries.

“People want the government to respond immediately and that is what is appreciated,” he said, adding “we want resolution and not liquidation” of ailing companies.

Kharge alleged that the ordinance was brought by the government to help the Reliance Industries to acquire Alok Industries.

“You brought this ordinance in haste. You do not respond with such alacrity during floods. The minister’s reply is not proper. We protest and walk out,” he said while leading the walkout.

Earlier, several opposition members demanded that the bill may be referred to a Standing Committee.

Participating in the debate on the measure, Congress member Veerappa Moily said the National Company Law Tribunal (NCLT) had become “an instrument for siphoning off funds” of the treasury as banks were taking huge haircuts and corporates were buying out insolvent companies for paltry sums.

“Be fair and refer the bill to the Standing Committee. Because you got stuck up in the NCLT, you brought in the bill. The Ordinance is tainted and sending it to the Standing Committee will remove the taint,” he said, adding that the “greed” behind bringing the bill is to “loot the banks”.

Moily, a former Corporate Affairs Minister, said if the bill was referred to the Standing Committee, then it would submit its report within 15 days. Moily is now the Chairman of the Standing Committee on Finance.

N K Premachandran (RSP) said the promulgation of the IBC (Amendment) Ordinance was a “clear case of crony capitalism”, saying it intended to benefit a particulate industrial house.

“Alok Industries owed Rs 300 crores to banks, Reliance Industries bought it in Rs 50 billion, banks loss was Rs 250 billion,” he asserted, while alleging that undue haste was shown by the government in bringing the bill.

Questioning the government’s urgency in bringing the IBC Ordinance when the Monsoon Session was just a month away, P Venugopal (AIADMK) said a perception was being built that the government has brought in the amendment bill to facilitate one corporate house.

“The IBC is being amended in haste to allow Reliance Industries to take over Alok Industries…. In the name of NPA clean-up, the government should not be seen as supporting crony capitalism,” Venugopal said.

Saugata Ray (TMC) said the government was leading the country to a ‘blind alley’ and the IBC should not be seen as a panacea for all illness.

“Mr Goyal, our caretaker Finance Minister, we can’t see the banking sector collapse… I support the Congress demand of referring the bill to the Standing Committee,” Ray said.

He said under the resolution process, banks were taking huge haircuts and the IBC is leading to “crony capitalism”.

Citing the resolution process of the Alok Industries, Ray said the Reliance Industries could not acquire the company at the first instance since the resolution plan got less than the required 75 per cent vote.

“The IBC amendment bill brought by the government lowers the minimum vote requirement for passing the resolution to 66 per cent from 75 per cent in the original act. Just for 66 per cent vote, you can acquire a company. Just for Reliance Industries, Government has brought an Ordinance,” Ray said.

The TMC member said in case of Bhushan Steel takeover by Tata Steel, the banks had taken 40 per cent haircut and lost Rs 210 billion. In case of Vedanta buying Electrosteel, the haircut was 60 per cent and the banks lost Rs 84 billion.

As regards Alok Industries, banks have taken 83 per cent haircut and the loss is to the tune of Rs 250 billion, he claimed in the House.

The other members who participated in the debate included Subhash Baheria (BJP), P S Chandumajra (SAD), J P Narayan (RJD) and Dushyant Chaoutala (INLD).

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IPS Officer Nupur Prasad gets Medal for Meritorious Service after Sushant Singh Rajput probe

IPS officer Nupur Prasad, who led the CBI investigation into Sushant Singh Rajput’s death, has been selected for the Medal for Meritorious Service this year.

Published

23 hours ago

August 15, 2026

APNLive Desk

IPS officer Nupur Prasad, who led the CBI investigation into actor Sushant Singh Rajput’s death, has been recognised with the Medal for Meritorious Service (MSM) this year.

A 2007-batch AGMUT cadre officer, Ms Prasad recently returned to the Delhi Police after completing her tenure with the CBI. She is currently serving as Joint Commissioner of Police in the Economic Offences Wing (EOW), where she oversees investigations involving financial and economic crimes.

The award is part of this year’s recognition for police personnel for distinguished and meritorious service. Such honours recognise contributions in areas including investigation, crime prevention, public service, law and order and administration.

Nupur Prasad’s role in Sushant Singh Rajput case

Ms Prasad came into national focus during the CBI investigation into the death of Sushant Singh Rajput, who was found dead at his Mumbai residence on June 14, 2020.

The case was transferred to the CBI in August 2020 following a complaint by the actor’s family and a legal dispute over jurisdiction.

During her tenure with the agency, Ms Prasad supervised key aspects of the investigation, including the examination of witness statements, forensic evidence and medical records.

In 2025, the CBI filed closure reports, saying its investigation found no evidence of foul play, abetment to suicide or criminal conspiracy in the actor’s death.

Career across Delhi Police, CBI

Ms Prasad has served in several positions during her career, including assignments in the Delhi Police, CBI, Arunachal Pradesh and West Bengal.

Before joining the CBI, she held senior positions in the Delhi Police and became the first Deputy Commissioner of Police (DCP) of Shahdara. During her tenure, she worked on establishing the district’s policing framework following its creation.

She also led operations targeting drug networks and illegal gambling activities while focusing on crime-prevention measures.

Later, as DCP of North Delhi, she oversaw security arrangements for major events, including Independence Day celebrations at the Red Fort and Delhi University elections.

Community-focused policing initiatives

Beyond investigations, Ms Prasad has been associated with community-focused programmes involving women’s self-defence, youth development, cyber safety and drug de-addiction.

During her CBI tenure, she was also associated with several prominent investigations. Media reports have linked her to cases concerning businessman Vijay Mallya and the AgustaWestland helicopter deal.

Current role in Delhi Police

After completing her assignment with the CBI, Ms Prasad returned to the Delhi Police and took charge as Joint Commissioner of Police in the Economic Offences Wing.

The latest recognition adds to her career spanning investigations, policing and public service across several challenging assignments.

India News

Kharge, Rahul Gandhi skip Independence Day event for 2nd straight year

Congress chief Mallikarjun Kharge and Rahul Gandhi skipped the 80th Independence Day celebrations at the Red Fort for the second consecutive year.

Published

23 hours ago

August 15, 2026

APNLive Desk

Congress president Mallikarjun Kharge and Leader of Opposition in the Lok Sabha Rahul Gandhi skipped the 80th Independence Day celebrations at Delhi’s Red Fort for the second consecutive year.

Prime Minister Narendra Modi led the Independence Day celebrations at the historic venue on Saturday.

The absence of the two senior Congress leaders comes amid strained relations between the ruling party and the Opposition, which further deteriorated during the Monsoon Session of Parliament that concluded on Thursday.

2024 seating controversy

Rahul Gandhi had attended the Independence Day celebrations in 2024 but his seating arrangement triggered a controversy. The Congress leader, who holds the status of a Cabinet minister as Leader of the Opposition in the Lok Sabha, was seated in the second-last row during the ceremony at the Red Fort.

The Opposition had criticised the seating arrangement, calling it an insult to the people. The Defence Ministry, which organised the event, said the arrangement had been modified to accommodate Olympians at the venue.

According to protocol, the Leader of the Opposition is seated in the front row during ceremonial events.

Opposition-ruling party tensions

Relations between the government and the Opposition remained tense during the Monsoon Session, which ended on Thursday.

The session saw repeated clashes between the two sides, with both the Opposition and the ruling party blaming each other for the low productivity of Parliament.

The session began on July 20, with students marching towards Parliament on the first day. Twelve bills were passed during the session, while detailed discussion took place on only one legislation, concerning paper leaks.

The Congress, along with the Trinamool Congress and Samajwadi Party, also boycotted the customary tea party hosted by Lok Sabha Speaker Om Birla after the House was adjourned sine die.

India News

PM Modi’s Saptadhara Vision: 7 streams driving India’s next growth phase

PM Modi outlined “Shakti Ki Saptadhara”, identifying seven streams including manufacturing, farming, technology, defence, green energy and soft power.

Published

23 hours ago

August 15, 2026

APNLive Desk

Prime Minister Narendra Modi, in his Independence Day address from the Red Fort on Saturday, outlined “Shakti Ki Saptadhara”, describing seven key streams that he said can drive India’s next phase of growth and strengthen its journey towards self-reliance and development.

The seven streams identified by the Prime Minister are manufacturing, farming, technology, Gatishakti, Raksha Shakti, green and blue economy, and soft power.

Calling on the country to focus on these areas, PM Modi said the seven streams represent India’s strength and can help the country become more self-reliant.

Manufacturing as the engine of growth

PM Modi called manufacturing the first stream of Saptadhara and stressed the need to significantly strengthen the sector.

He said India needs to produce both components and complete products and should emerge as a key destination in global supply chains.

The Prime Minister highlighted cost, quality and scale as important factors for Indian manufacturers to compete globally. He also stressed the importance of attractive packaging and precision in manufacturing.

Farming and food processing

Agriculture and food processing were identified as the second stream.

PM Modi said global markets are increasingly accessible to Indian farmers and called for greater efforts to take agricultural products from farms to international markets.

He highlighted traditional foods, millets, spices, fruits and vegetables, saying these products should be developed into global brands.

Technology and innovation

Technology and innovation form the third stream of Saptadhara, according to PM Modi.

He highlighted areas such as data centres, robotics and emerging technologies, saying India should aim to become a hub for these sectors.

Referring to the country’s experience with UPI and Digital Public Infrastructure, PM Modi said India has already demonstrated its technological capabilities and must now take the next leap in next-generation communication technology.

He also spoke about the goal of Made-in-India 6G reaching across the country.

Gatishakti and faster connectivity

The fourth stream is Gatishakti, with the Prime Minister stressing the importance of speed and connectivity for India’s growth.

PM Modi called for greater emphasis on roads and expressways to support businesses and said the country needs seamless, high-speed connectivity.

He also highlighted high-speed rail connectivity between cities and port-led development as areas requiring greater focus.

Raksha Shakti and self-reliant defence

Defence is the fifth stream of Saptadhara.

PM Modi called for greater self-reliance in defence manufacturing and highlighted the need to develop advanced technologies in the sector.

He particularly stressed the importance of drone and counter-drone technology, saying India needs to invest in these areas.

The Prime Minister also said India should move beyond being a market for defence equipment and work towards becoming a global supplier by developing next-generation defence technologies.

Green and blue economy

Green energy forms the sixth stream of Saptadhara.

PM Modi called for greater innovation in green energy and said India should aim for global leadership in green hydrogen, renewable energy and energy storage while continuing to contribute solutions to global challenges.

He also highlighted opportunities in the Blue Economy, particularly in fisheries, coastal tourism and ocean technology, saying these areas can create new pathways for India’s growth.

Soft power

Soft power is the seventh stream identified by PM Modi.

He cited Yoga, handicrafts, films, animation, gaming, digital content and the creative sector as examples of India’s soft power.

The Prime Minister also highlighted India’s potential to attract global tourists and called for greater focus on the country’s tourism opportunities, including its national parks and other attractions.

With “Shakti Ki Saptadhara”, PM Modi outlined a broad growth framework covering manufacturing and agriculture, emerging technology, connectivity, defence, sustainable energy, the blue economy and India’s cultural and creative influence.