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Insolvency Law -Resolution of NPA's - Crores back to banks

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1 hour ago, Kiran said:

Enti information act full credit mounmohan kaa and lifetime lo okati alantidhi cheyalaaaa :laughing:

Anyone who follows the ruling party’s speeches and campaign, what stands out is that Right to Information (RTI), Food Security Bill and Right to Education Bill are among the three major accomplishments they are going to people with. But, as more and more people are now pointing out, all these bills are nothing but what the NDA government had already done and what the UPA has done is to merely give it a new nomenclature.

Let us look at the RTI Act, which, in more ways than one has been a game changer. The act was enacted and assented in June 2005, when UPA had been in power for a year. But what was RTI really? It was nothing but the Freedom of Information (FOI) Act 2002 that was enacted by the NDA government.

In fact, the aim of the act was the same as the RTI and, as this letter dated January 30, 2003, from the then secretary, Department of Personnel and Training (DoPT) shows, the government had started moving towards promoting it.

Other than calling it the “beginning of a new era in approach of government functioning where openness shall now be the rule and secrecy an exception”, the letter went on to ask all secretaries to “provide before hand the requisite infrastructure in the form of rules etc.”

In fact, so serious was the NDA government about this act’s implementation that the letter from the DoPT said: “the provisions contained therein give the Act an over-riding effect in character. In keeping with this, we would suggest that an immediate review may be undertaken for all such Acts and Instruments administered by the Ministry and amendments made thereto, wherever necessary, so that the scheme is not subverted through the operation of conflicting provisions in these Acts/Instruments.”

The letter then went on to say “suitable action may be taken on priority basis so that there is no cause for delay in brining the act into force”, before concluding: “As the entire infrastructure for bringing the Act into force has to be set up within the shortest possible time, I shall be grateful if the above aspects receive your personal attention.”

This was January 2003. RTI came in 2005. If one were to analyse, bluntly put, it is nothing but a case of the UPA coming to power and sitting on it for a couple of years, give it a new name and then take credit for it. In fact, Aruna Roy and Arvind Kejriwal have, perhaps, worked harder to popularise and take it to the masses than any of the large political parties. 

And it is not just this. Even the Right to Education Bill, which is once again seen as a game changer, was actually conceived in 2003 as something called “Free & Compulsory Education for Children.”

If you dig the net and the social media, there are plenty of other instances available where something that was thought through and started during NDA was appropriated by the UPA after a slight break by merely giving it a new name.





Inka Vajpayee goppathanam tho bathikeyyalanukunte etla. Ippudu meeru kotha rajakeeyalathu aduthunnaru kadha? 

We want to understand what Modi had promised on Lokayukta before elections and what he had delivered till date.

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27 minutes ago, JAYAM_NANI said:

Inka Vajpayee goppathanam tho bathikeyyalanukunte etla. Ippudu meeru kotha rajakeeyalathu aduthunnaru kadha? 

We want to understand what Modi had promised on Lokayukta before elections and what he had delivered till date.

Mundhu deliver chesinavi appreciate cheddam like the one in this thread 

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Essar Steel promoters offer Rs 54,389 cr to clear all dues of banks

 New Delhi, Oct 25 (PTI) In a last-ditch effort to retain control over the company, promoters Ruia family Thursday offered to pay lenders of Essar Steel Rs 54,389 crore including Rs 47,507 crore upfront cash payment to clear all dues and pull out the firm from insolvency proceedings.

The offer is better than Rs 42,202 crore offered by the world's largest steel producer ArcelorMittal to take over Essar Steel, which lenders are auctioning to recover their unpaid dues of over Rs 49,000 crore. "The shareholders of Essar Steel have today (Thursday) submitted a proposal to the Committee of Creditors (CoC) for full settlement of the entire admitted claims of the financial creditors, operational creditors, and workmen and employees of Essar Steel India Ltd (ESIL), aggregating Rs 54,389 crore, under Section 12A of the Insolvency and Bankruptcy Code," the company said in a statement.

While the company did not share where it was raising the money from, sources said the promoters have already arranged for an upfront cash payment to save the biggest mill being sold under the new insolvency process. Ruias offered to pay financial creditors a total of Rs 49,395 crore to clear all their outstanding dues till date. Besides operational creditors have been offered Rs 4,976 crore and employees another Rs 18 crore to clear all their dues. 


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  • 4 weeks later...

Insolvency law helped resolve Rs 3 lakh crore bad debts in 2 years: Srinivas

The two-year-old Insolvency and Bankruptcy Code (IBC) has directly and indirectly helped resolve stressed assets worth Rs 3 lakh crore, Corporate Affairs Secretary Injeti Srinivas said on Saturday.

"So, that takes you close to Rs 3 lakh crore, direct and indirect impact of the IBC, which is a huge amount," he said after adding stressed assets resolved on its own and through IBC.

He was speaking at an event hosted by industry body FICCI.

Srinivas said the insolvency law has disposed of about 50 per cent (4,400 to be exact) of the 9,000-odd cases that it received in the last two years, including those transferred from the Board for Industrial and Financial Reconstruction (BIFR).

More than 85 per cent of the resolved cases were disposed of prior to admission in National Company Law Tribunal (NCLT) on the joint request of debtor and creditor, after being brought to the IBC by the financial or operational creditor.

"Our figures show us that more than 3,500 cases got resolved pre-admission and it has resulted in claims amounting to Rs 1.2 lakh crore getting settled," he said.

Of the 1,300 odd cases that were admitted, Corporate Insolvency Resolution Process (CIRP) for about 400 cases is complete, resolution plans for 60 cases approved, and liquidation order passed for 240 cases.

As many as 126 cases are in appeal, he said.

"These cases which have been resolved have led to recovery of about Rs 71,000 crore. If you add cases which are at mature stage, then it will come to another Rs 50,000 crore... almost Rs 1.2 lakh crore coming from resolutions. Add up the pre-admission claim settlement, it becomes Rs 2.4 lakh crore," he said.

Further, Srinivas said Rs 45,000 crore to Rs 50,000 crore non-standard NPA accounts have been converted into standard accounts by virtue of the borrowers paying back the overdue amount taking, the total close to Rs 3 lakh crore.

Though much of the resolution amount is owed to operational creditors and not to banks, the resolved bad debt is one-third of the gross NPA of Indian banks, which is Rs 10 lakh crore.

"The Rs 3 lakh crore, direct and indirect impact of the IBC, is one-third of Rs 10 lakh crore in a way, but much of this money may not be owed to banks alone. The Rs 1.2 lakh crore which got settled to a considerable extent would be pertaining to the operational creditors."

Operational debt consists of liabilities that a firm incurs through its primary activities. The most common operational debts are vendor payables, pension liabilities, salaries and taxes.

Srinivas said compared to the 26 per cent recovery in BIFR, the recovery through the IBC has more than doubled, including 100 per cent in some cases depending on the enterprise value, which gets preserved due to the time-bound reference under the new law.

Speaking at the conference on 'Ensuring Efficiency in Resolution Process', Insolvency and Bankruptcy Board of India (IBBI) Chairman M. S. Sahoo said the IBC was not a panacea for resolution and that the code will require a couple of years to gain maturity.

IBC, he said, is like an orchestra and wants everyone to play. The Committee of Creditors (CoC) has to play its due role, attend meetings and take business decisions that are viable and add value.



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