COMPANY LAW COMMITTEE
Supernova insolvency case: NCLAT to wait for lenders' decision on settlement offer from Supertech Realtors
Insolvency appellate tribunal NCLAT on Wednesday said it will wait for the decision of lenders on a revised settlement offer by Supertech Realtors, which is developing a residential apartment, offices, retail and luxury hotels at its Supernova project. NCLAT also directed the Interim Resolution Professional (IRP) not to constitute a Committee of Creditors. However, it said the construction work for the project would be continued under the supervision of IRP.
Law firm IndusLaw’s partner Padmaja Kaul to join JSA with three-member team
Padmaja Kaul, a partner specializing in litigation and dispute resolution at IndusLaw, is poised to transition to J Sagar Associates (JSA) along with her team of three lawyers. This move marks the second significant transfer to JSA from a full-service law firm. Last month, Iqbal Khan and Ambarish, former partners at Shardul Amarchand Mangaldas & Co (SAM & Co), also joined JSA, bringing with them a team of approximately 18 members.
ESOPs exempt from GST, barring where foreign companies charge additional amount
The Central Board of Indirect Taxes and Customs (CBIC) clarified that multinational companies offering Employee Stock Purchase Plans (ESPPs), Employee Stock Option Plans (ESOPs), or Restricted Stock Units (RSUs) without additional charges will not attract GST. This decision benefits tech giants like Google, Microsoft, Oracle, and Walmart, alleviating tax litigation concerns
Reliance Capital lenders set out conditions to grant extension to Hindujas
Lenders of Reliance Capital, promoted by Anil Ambani, have submitted an affidavit to the bankruptcy court stating conditions for granting a 90-day extension to the winning bidder, a Hinduja Group entity. The extension would require depositing Rs 2,750 crore into a lender's escrow account and paying 12% interest on the Rs 9,660-crore offer. The National Company Law Tribunal is scheduled to consider Hinduja Group's plea for the extension on Tuesday. Earlier, NCLT had instructed Hinduja Group's IndusInd International Holdings (IIHL) to execute the plan by May 27th.
GST Council Meeting: Sin goods windfall, tax relief talks, and more ahead of budget buzz
GST Council Meeting: The upcoming 53rd meeting of GST Council is poised to discuss several key measures that could pave the way for significant tax reforms ahead of the government's first full budget. Among the agenda items are -- the use of approximately Rs 70,000 crore collected from GST compensation cess on products like pan masala and cigarettes. Discussions may also cover the potential waiver of interest or penalties on tax notices issued between 2017 and 2020, excluding cases of deliberate default.
GST Council likely to deliberate on online gaming tax, Par panel recommendation on fertiliser
The GST Council is set to discuss various issues in its upcoming meeting, including taxation on online gaming and the recommendation to lower tax on fertilisers by the Parliamentary standing committee. The current GST rate on fertilisers is 5%, while raw materials like Sulphuric Acid and Ammonia face a higher rate of 18%. The council will also review the decision to levy 28% GST on the full value of bets for online gaming companies, which came into effect on October 1, 2023.
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IBBI seeks to tighten the noose around guarantors of bankrupt firms
The Insolvency and Bankruptcy Board of India (IBBI) has proposed changes in the resolution plan process to hold guarantors accountable, following the Supreme Court's ruling. Stakeholders are encouraged to review and provide feedback on the proposed amendments to streamline the valuation process for stressed firms.
Law committee recommends amendment to CGST law to quash retro tax notice
The recommendation, if approved by the council may give relief to a large number of industries including online gaming industry, which was seeking relief from retrospective tax notice. The recommendation may be placed before the GST council and once approved this would pace way for quashing a large number of notices sent to online gaming industry. The law committee has suggested amendment to the Central Goods and Services Tax (CGST) Act, 2017 via the introduction of a new Section 11A in the legislation.
Retro tax demand on online gaming companies may be quashed
As per the recommendation tax notices in cases where the lower tax was paid due to interpretation of law or lack of clarity can be quashed, people familiar with the development said. The law committee has suggested amendment to the Central Goods and Services Tax (CGST) Act, 2017 via the introduction of a new Section 11A in the legislation.
Reliance Cap resolution: NCLT to hear IIHL plea for deadline extension on June 20
The National Company Law Tribunal (NCLT) will hear a plea from Hinduja Group firm IIHL on June 20 for an extension of the deadline to complete Reliance Capital's resolution. IIHL, the successful bidder for Reliance Capital, seeks a 90-day extension beyond the May 27, 2024 deadline set by NCLT Mumbai for completing the Rs 9,650-crore resolution plan. Reliance Capital, the financial services arm of Anil Ambani Group, had its board superseded by the RBI in November 2021, and IIHL's resolution plan was approved by NCLT in February 2024.
NCLT admits personal insolvency resolution plea against Mahesh Shetty of MT Educare
The National Company Law Tribunal (NCLT) in Mumbai has accepted Prudent ARC's application to begin personal insolvency resolution proceedings against Mahesh R Shetty, promoter of MT Educare, for a default of Rs 16.64 crore. Shetty had provided a personal guarantee for these loans. The tribunal directed the resolution professional, Santanu T. Ray, to issue a public notice inviting claims from creditors.
NCLT allows fresh round of bidding for KSK Mahanadi
The National Company Law Tribunal (NCLT) has allowed KSK Mahanadi Power Company Ltd's committee of creditors (CoC) to invite fresh bids for the company. This decision comes after the tribunal dismissed Megha Engineering & Infrastructure Ltd's objection, stating that the first round of bidding had already attracted interest from 12 prospective resolution applicants. The resolution professional (RP) argued that the change in circumstance, with KSK Mahanadi undergoing corporate insolvency resolution process (CIRP) on a standalone basis, warranted fresh bidding. The second round of bidding has seen interest from entities like Coal India Ltd and NTPC Ltd.
Relief for 20,000 homebuyers! Suraksha Group finally takes over Jaypee Infratech via insolvency process
According to a regulatory filing by Jaypee Infratech on Wednesday, Suraksha Group informed the IMC (Implementation and Monitoring Committee) that May 24, 2024, i.e., the date of the NCLAT order should be treated as the 'Approval Date' as defined in the approved resolution plan.
Insolvency proceedings ordered against Jaiprakash Associates; these Jaypee homebuyers won't be impacted
Jaypee home buyers: Jaiprakash Associates Ltd (JAL) is currently in the process of insolvency proceedings, and an appointed resolution professional by the NCLT will now assume control. As per a news report from the Times of India, the board, previously led by the Gaurs, will cease to function.
Hope for 20,000 homebuyers! Suraksha Group set to take over Jaypee Infratech in a boost for Noida's Wish Town project
Suraksha Group, having had its resolution plan for Jaypee Infratech Limited (JIL) approved by the NCLAT, is set to take control of the company following a meeting next week. This development brings the group closer to restarting construction on nine stalled projects in Noida's Wish Town and other areas, offering renewed hope to 20,000 buyers who invested in flats 15-20 years ago.
IAMAI view on draft Digital Law not shared by all constituents: four members tell MCA
Four members of IAMAI, including Bharat Matrimony, Match Group, Hoichoi, and ShareChat, express divergent views on ex-ante regulation in the draft DCB to the Ministry of Corporate Affairs.
NCLAT upholds Adani Goodhomes bid with 93% haircut for Radius Estate
The Insolvency Appellate Tribunal NCLAT upheld its Adani Goodhomes' resolution plan for Radius Estate. NCLAT rejected petitions from two dissenting financial creditors, and approved the plan to provide possession to nearly 700 flat owners without price escalation. The plan was opposed by Beacon Trusteeship and ICICI Prudential Venture Capital Fund Real Estate, who claimed it was unfair, but NCLAT affirmed the Commercial Creditors' Committee's decision.
Panel to examine if nutraceuticals can be produced within drug unit
In a significant development, a five-member expert committee has been appointed to assess the feasibility of allowing the manufacturing of nutraceuticals within drug manufacturing facilities in India. This decision comes after the country's drug regulator had previously warned of taking action against those violating regulations by producing supplements and drugs in the same facility.
NCLAT upholds NCLT order on Jaypee Infra; asks Suraksha to pay additional Rs 1,300 crore
NCLAT affirmed Suraksha Realty's acquisition bid for Jaypee Infratech but mandated an extra Rs 1,300 crore as farmers' compensation. The decision aimed to expedite the resolution plan, addressing concerns of stakeholders, including homebuyers and YEIDA. Suraksha pledged timely payment, aiming to resolve the debt-ridden firm's fate.
Reliance Capital administrator seeks 90-day extension from NCLT to implement resolution plan
Reliance Capital's administrator has filed a request for a 90-day extension to implement a resolution plan submitted by the Hinduja Group, which was approved by the National Company Law Tribunal (NCLT) Mumbai. The resolution plan, approved by the tribunal, was for IndusInd International Holdings Ltd's Rs 9,650-crore plan. Reliance Capital's board was replaced by the Reserve Bank in November 2021 due to governance issues and payment defaults. The company's debt is over Rs 40,000 crore.
NCLT rejects JM Financial Asset Reconstruction's plea in Arch Pharmalabs case...
The National Company Law Tribunal dismissed JM Financial Asset Reconstruction's application to intervene in an insolvency resolution application filed by Bank of Baroda against Arch Pharmalabs.
Flat stuck in a delayed or stalled real estate project? Six things aggrieved homebuyers can do
Homebuyers stuck in stalled real estate projects face financial strain and uncertainty. They pay EMIs and rent while bearing the loss of opportunity cost. If you have property in a delayed or stalled real estate project, here are some things you can do as a home buyer.
GST officers working on registration mechanism for 'shared warehouse' for e-commerce suppliers
GST authorities are developing a mechanism to address taxation and registration issues for shared warehouses used by e-commerce companies, where multiple suppliers store goods for last-mile delivery. This issue arises because suppliers have geo-tagged these warehouses as their 'additional place of business' under GST rules, raising concerns of potential fraudulent registrations and the risk of holding warehouses accountable for individual supplier defaults.
NCLAT allows Sarda Energy to seek tribunal nod for its SKS Power offer
The National Company Law Appellate Tribunal (NCLAT) has granted permission to Sarda Energy & Minerals (SEML) to pursue a final approval from the bankruptcy court for its bid for SKS Power Generation. This decision overturns the lower court's ruling in October, which instructed the committee of creditors (CoC) to review its selection of SEML as the recipient of the 600 MW power producer.
Draft digital competition bill will make business untenable: IAMAI
Ex-ante regimes tell businesses precisely how to behave, or what to do. Under the current ex-post regime of the Competition Act, companies are only required to ensure that their conduct in the market is not anti-competitive. An overlapping ex-ante regime proposed under the digital competition Bill will force tech companies to comply with parallel legislation and undertake measures for additional compliance, the IAMAI said.
Ashdan, Yash Shares in a duel to acquire Rolta India
Lenders prepare to vote on revised bids for Rolta India to choose the buyer, with Ashdan leading despite challenges. The company's debt amounts to ₹14,000 crore, and an appeal to the appellate tribunal is still an option.
RBI looks at asset reconstruction companies amid a flood of allegations
India's central bank is set to hold a meeting with top management from asset reconstruction companies (ARCs) to discuss corporate governance and stressed-asset resolutions. This comes amidst concerns about potential back-door entry by defaulting promoters. The meeting, scheduled for May 17 in Mumbai, will see the participation of all 27 registered ARCs, along with RBI executives. Allegations have arisen that ARCs may strike deals with defaulting promoters, allowing them entry at a steep discount, bypassing regulations.
NCLT approves Sapphire Media's acquisition of Big 92.7 FM
NCLT Mumbai approved Sapphire Media's plan for Big 92.7 FM, paying Rs. 261 crore to creditors. The resolution process began in February 2023 under the Insolvency and Bankruptcy Code, with a creditors' committee approving the plan on November 11, 2023.
KSK Mahanadi to NCLT: Change of circumstances calls for fresh bidding
KSK Mahanadi Power Company, represented by its Resolution Professional's counsel, informed the NCLT, Hyderabad, on Monday, that new circumstances necessitate a reissuance of bids under the corporate insolvency resolution process (CIRP) for KSK Mahanadi Power, which entered insolvency proceedings in October 2019.
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