English हिन्दी
Connect with us

India News

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

Published

on

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).

India News

West Bengal train ticket examiner collapses after live wire falls on him, video viral | Watch

The Senior DCM of Kharagpur, while talking to the media, also expounded on the conversation and stated that a probe has been ordered into the matter to find the genesis of the incident. According to reports, the officials suspect that the wire which caused the incident might have snapped after it came in contact with another live wire.

Published

on

West Bengal train ticket examiner

A spine-chilling video has come to light from West Bengal’s Kharagpur railway station, where two Train ticker examiners (TT3) were conversing, and out of the blue, a live wire fell on one. One of the two TTEs was able to save himself and step away from the area of impact, whereas, the other one wasn’t so lucky as the man comes in direct contact where the live wire fell on him.

In the video, two TTE’s can be seen conversing on the platform of the Kharagpur railway station and out of the blue, a live wire can be seen falling on one of the man which electrocuted the man which led to him collapsing and falling down the platform and onto the train tracks.

Watch video here:

The video also shows the man conversing with the victim prior to the live wire fall, being taken aback by what transpired as he narrowly escapes from it. The man can also be seen holding on to his hat as he dashes away from the the live wire.

Read Also: Maharashtra-Karnataka Border Row: MVA MPs meet Amit Shah, protest outside Maharashtra Bank in Bengaluru

According to reports, the man was identified as Sujan Singh Sardar and upon witnessing the incident, the railway officials rushed to the victim and took him to the hospital. The man was reportedly reached stable state.

Authorities action

The Senior DCM of Kharagpur, while talking to the media, also expounded on the conversation and stated that a probe has been ordered into the matter to find the genesis of the incident. According to reports, the officials suspect that the wire which caused the incident might have snapped after it came in contact with another live wire.

Twitter reaction

After the video of the incident went viral one user came forward to remark on the incident and claimed the blood to be in the hands of the government, stauchly implyin that what caused the incident is the negligence of the government.

See Tweet here:

Gujarat Elections 2022: Bhupendra Patel to take oath as CM on December 12, Congress breaks silence on getting confined to North Gujarat, AAP gains national party tag

Congress to decide Himachal Chief Minister, Pratibha Singh among other hopefuls

Continue Reading

India News

Maharashtra-Karnataka Border Row: MVA MPs meet Amit Shah, protest outside Maharashtra Bank in Bengaluru

Members of the Namma Karnataka Sena staged a vigorous protest against the Maharashtra government outside the bank located in Gandhinagar.

Published

on

protest outside Maharashtra Bank in Bengaluru

Home Minister Amit Shah is having a meeting with MPs of Mahavikas Aghadi in Delhi on the issue of border dispute between Maharashtra-Karnataka. It is reported that a team of MVA MPs led by Supriya Sule has come to meet the Home Minister. Apart from the ongoing dispute between the two states, other issues of Maharashtra are also likely to be discussed in this meet.

On the other hand, there is news of a vigorous demonstration outside Maharashtra Bank in Bengaluru regarding the border dispute. Reportedly, members of the Namma Karnataka Sena staged a vigorous protest against the Maharashtra government outside the bank located in Gandhinagar. Bengaluru police has also detained several of them.

Congress to decide Himachal Chief Minister, Pratibha Singh among other hopefuls

Last week the border dispute between Karnataka and Maharashtra had taken a violent turn. Following a protest in Belagavi by an organization called Karnataka Rakshana Vedike, trucks with Maharashtra number plates were stopped, vandalised and black ink was applied on them. Several trucks were also pelted with stones.

Reportedly, Belgaum city is at the center of this dispute. Maharashtra has consistently claimed that this Marathi-majority region was wrongfully given to Kannada-majority Karnataka in the language-based reorganization of states in the 1960s. Karnataka has recently resumed its claim on some villages in Maharashtra, triggering a fresh round of acrimony, despite the fact that BJP is the only party in power in both these states.

Several political leaders of Maharashtra are asking for Centre’s intervention now. NCP chief Sharad Pawar even said that if Karnataka CM, Basavaraj Bommai is going to make provocative statements, then the Centre should intervene. He also requested Maharastra MPs to take a delegation to Prime Minister Narendra Modi and Home Minister Amit Shah, since the winter session of the Parliament is beginning tomorrow.

Massive fire breaks out in Lucknow’s biryani shop at Charbagh station road, customers burn alive

Football World Cup: Brazil clash with Croatia in quarterfinal, everything you need to know

Continue Reading

India News

Gujarat Elections 2022: Bhupendra Patel to take oath as CM on December 12, Congress breaks silence on getting confined to North Gujarat, AAP gains national party tag

Bhupendra Patel will continue as the Chief Minister of Gujarat. PM Narendra Modi, home minister Amit Shah will attend Patel’s swearing-in ceremony.

Published

on

Gujarat Elections 2022

Gujarat CM Bhupendra Patel is all set to take oath and begin his second term. Reportedly, BJP is planning to organize a grand swearing-in ceremony at the Gandhinagar assembly helipad ground on December 12. State BJP president C R Paatil said the ceremony will begin at 2pm.

He even revealed that Bhupendra Patel will continue as the Chief Minister of Gujarat. It is being told that Prime Minister Narendra Modi, home minister Amit Shah and several top BJP leaders will attend Bhupendra Patel’s swearing-in ceremony.

Congress on getting confined to North Gujarat

On the other hand, Congress has broken silence on their crushing defeat in Gujarat. Congress leader are trying to at lest stay positive on Twitter and on camera, as they said that the grand old party is busy celebrating their win in Himachal Pradesh and Gujarat loss will be seen as a lesson. Moreover, Congress is also likely to lose the post of the Leader of Opposition in the state.

Rahul Gandhi’s Congress barely managed to win 17 seats in Gujarat. This is severely down from its tally of 77 in the 2017 elections. This is also the worst performance of the Congress in Gujarat. Experts are blaming Congress’s silent, localised door-to-door campaign for a near evaporation of the party. 

Read Also: Congress to decide Himachal Chief Minister, Pratibha Singh among other hopefuls

AAP gains national party tag

However, at least Congress was able to win seats in North Gujarat and win Himachal Election but despite several campaigns the election results have come as a disappointment to the Arvind Kejriwal-led Aam Aadmi Party. AAP could not draw enough voters and had to settle for 5 seats in its debut elections in Gujarat and worst to their fears the party drew a blank in Himchal Pradesh.  

But Contrary to how things may appear, AAP has a lot to look forward. Yes! the party may have only won MCD elections but did manage to leave an impression despite its single-digit tally in the state. Winning 5 seats, Aam Aadmi Party has dared to breach the fortress of PM Modi and Amit Shah in Gujarat.

With its government in two states and one Corporation under its fold, Arvind Kejriwal-led Aam Aadmi Party. now ranks third after the BJP and Congress, leaving behind all other regional parties.

Massive fire breaks out in Lucknow’s biryani shop at Charbagh station road, customers burn alive

Football World Cup: Argentina to clash with Netherlands in quarter final, everything you need to know

Continue Reading

Trending

-->

© Copyright 2022 APNLIVE.com