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

LPU violence: Masks, iron rods and fire turn student protest violent

Violence erupted at Lovely Professional University in Punjab after an unverified social media claim about the alleged rape and suicide of a female student. Police registered an FIR and began investigating the incident.

Published

on

A protest at Lovely Professional University (LPU) in Punjab’s Phagwara escalated into violence after an unverified social media claim alleged that a female student had been raped and later died by suicide.

The allegation had not been confirmed by police when the protest began. LPU rejected the claim and described it as false and fabricated. The unrest later involved vandalism, fires and a blockade of National Highway-44 outside the university.

By Monday, September 28, security had been tightened around the campus, classes had been suspended for 10 days and students were leaving the university as parents arrived to take them home.

How the LPU protest began

The protest reportedly began near Girls’ Hostel-3 around 1 am on Sunday.

According to a student interviewed by media, students had received a message on Reddit claiming that a girl had been raped and subsequently died by suicide. The student said more people joined the protest after messages circulated among students.

However, police had not received or confirmed a rape complaint when the protest started. The allegation therefore remained unverified.

As more students gathered, the situation deteriorated.

Masks and iron rods seen during the unrest

Videos from the campus showed large numbers of people, with several individuals wearing masks.

Students interviewed after the violence said they were unable to establish whether everyone involved was a student or whether some people had entered the campus from outside.

One student also alleged that some people involved in the violence were carrying iron rods. These are accounts provided by students and should not be treated as an independently established identification of those responsible.

Police have been examining CCTV footage and investigating whether people from outside the university were involved.

Campus property damaged, fires reported

The unrest resulted in damage to university property, including smashed window panes and other vandalism. Some objects were also set on fire.

The violence extended beyond the campus, with protesters blocking National Highway-44, a major route connecting Jalandhar and Phagwara. The blockade continued for more than 15 hours before traffic was restored on Monday.

Other reporting also said vehicles and parts of buildings were damaged during the unrest.

Police registered FIR, special team formed

Punjab authorities moved to investigate the violence after the situation escalated.

Chief Minister Bhagwant Mann directed police authorities to take strict action against those responsible for the vandalism and arson. Punjab DGP Gaurav Yadav also visited the campus and reviewed the situation.

Police registered an FIR and formed a high-level Special Investigation Team to investigate the incident.

DGP Gaurav Yadav said the police had initially exercised restraint because students were involved in the protest. He said the authorities attempted to address students’ grievances through discussions.

What LPU said about the rape allegation

Lovely Professional University has denied that a female student was raped on the campus.

LPU Registrar Monica Gulati described the allegations as false, baseless and fabricated. The university also released a video featuring three female students from room 504 of a hostel, in which they said that no such incident had taken place in their room.

The video subsequently became controversial when the same students appeared in another video and alleged that they had been told what to say and that the video had been used without their consent.

These claims surrounding the video were circulating allegations and had not themselves been independently established in the report.

LPU classes suspended for 10 days

Following the violence, the university suspended classes for 10 days from September 28.

The university also postponed mid-term examinations until further notice, according to reporting on the situation.

Security was increased on the campus as students began leaving with their belongings and parents arrived to take them home.

What is known about the alleged rape-suicide claim?

At the time of the protests, police had not confirmed a rape complaint at LPU. The allegation had circulated through social media and among students but remained unverified.

LPU denied that the alleged incident had occurred. Police are investigating the violence and the circumstances surrounding the claims.

Continue Reading

India News

Supreme Court gives ECI four months to decide TMC name, symbol dispute

The Supreme Court has directed the Election Commission of India to decide the dispute over the All India Trinamool Congress name and ‘Flowers & Grass’ symbol within three months after completion of pleadings.

Published

on

The Supreme Court has directed the Election Commission of India (ECI) to decide the dispute over the All India Trinamool Congress (AITC) name and its ‘Flowers & Grass’ election symbol within a defined timeline.

The order came while the court was hearing a plea filed by Mamata Banerjee challenging the Election Commission’s interim decision to freeze the use of the party’s original name and reserved symbol amid competing claims between rival factions.

The court has given the parties four weeks to complete their pleadings, including responses, affidavits and counter-affidavits. The ECI will then have three months to adjudicate the dispute. This effectively establishes a four-month timeline for completion of the process.

What did the Supreme Court direct?

The Supreme Court directed the contesting sides to place their responses and other documents on record within four weeks.

After the pleadings are completed, the Election Commission has been asked to take three months to decide the dispute concerning the party’s name and election symbol. The matter is being considered under Paragraph 15 of the Election Symbols (Reservation and Allotment) Order, 1968.

The Supreme Court’s directions therefore provide a structured timeline for the ECI’s adjudication of the competing claims.

Why is the TMC name and symbol dispute before the Supreme Court?

The case follows an interim decision by the Election Commission in September to prevent the rival factions from using the All India Trinamool Congress name and the reserved ‘Flowers & Grass’ symbol while the competing claims are examined.

The Commission had said the dispute required a substantive determination under Paragraph 15 of the Election Symbols (Reservation and Allotment) Order, 1968.

Mamata Banerjee subsequently approached the Supreme Court challenging the ECI’s interim arrangement. The Supreme Court is examining the challenge while the substantive dispute remains before the poll panel.

What names and symbols are being used temporarily?

Following the Election Commission’s interim decision, the two rival factions were allotted separate identities for the upcoming by-elections.

The faction led by Mamata Banerjee was allotted the name Mamata All India Trinamool Congress and the Football Player symbol. The rival faction was allotted the name Democratic Trinamool Congress and the Envelope symbol.

These are interim arrangements and do not amount to a final determination of which faction is entitled to the original AITC name and ‘Flowers & Grass’ symbol.

What happens next in the TMC symbol dispute?

The immediate next step is for the rival sides to complete their pleadings within four weeks.

Once that stage is completed, the ECI has three months to decide the dispute. The Supreme Court has thus effectively provided a four-month framework for the proceedings to reach a decision.

Continue Reading

India News

Weather Tomorrow: Rain to ease in North India, heavy showers expected in South

The IMD has forecast easing rainfall across much of north India on September 29, while heavy to very heavy rain is expected in parts of southern India and showers will continue in the Northeast.

Published

on

Rain 2026

Rainfall activity across much of north India is expected to ease on Tuesday, September 29, while parts of southern India and the Northeast are likely to continue experiencing active weather.

The India Meteorological Department (IMD), in its latest forecast on Monday evening, predicted heavy to very heavy rainfall in parts of southern India, along with continued showers in the Northeast and Andaman and Nicobar Islands.

North India to see improving weather

Uttarakhand is expected to see a significant improvement in weather conditions on Tuesday. The IMD has not issued a heavy rain warning for the state.

Light to moderate rain is, however, likely at a few places in Uttarkashi, Rudraprayag, Chamoli, Bageshwar and Pithoragarh districts.

Himachal Pradesh may receive isolated rainfall, while Delhi, Haryana and Punjab are expected to remain largely dry.

The southwest monsoon’s withdrawal has reached Chandigarh, with the IMD expecting dry conditions across Delhi-NCR, Haryana and Punjab from September 29.

Uttar Pradesh is also likely to experience a gradual reduction in rainfall activity. The IMD has issued no warning for either eastern or western Uttar Pradesh for Tuesday, following several days of heavy rain that caused flooding and waterlogging in several districts.

Heavy rain forecast in parts of South India

South Interior Karnataka is likely to be the main focus in southern India on September 29, with the IMD forecasting very heavy rainfall along with thunderstorms and lightning.

Heavy rainfall activity in the region may continue through October 1.

Tamil Nadu, Puducherry and Karaikal are also expected to receive heavy rainfall from September 29, with the activity likely to continue through October 1.

Parts of Maharashtra could also experience storm activity. Madhya Maharashtra may see thunderstorms and lightning, while Konkan and Goa could also experience similar conditions.

Northeast likely to receive heavy rain

In the Northeast, Mizoram, Manipur, Nagaland and Tripura are expected to receive heavy rainfall accompanied by thunderstorms and lightning on September 29.

The IMD has forecast further heavy rainfall activity across the region on September 30.

The Andaman and Nicobar Islands are also likely to experience thunderstorms and lightning on Tuesday.

The IMD is monitoring a depression over the north Andaman Sea and adjoining Myanmar coast. According to the forecast, the system is expected to move towards the northeast Bay of Bengal and the Bangladesh coast.

Continue Reading

Trending

© Copyright 2022 APNLIVE.com