DEFAULTERS
CBI court issues NBW against Vijay Mallya in loan default case linked to Indian Overseas Bank
A Mumbai special court has issued a non-bailable warrant (NBW) against fugitive businessman Vijay Mallya in a Rs 180-crore loan default case linked to Indian Overseas Bank (IOB). The CBI, probing the case, claims Mallya caused a wrongful loss of over Rs 180 crore to the government-run bank by "wilfully" defaulting in payments. Mallya, who has been declared a fugitive economic offender in a money laundering case, currently resides in London and the Indian government is seeking his extradition.
Sri Lanka reaches deal on debt restructuring with bilateral creditors including India, China and France
Sri Lankan President Ranil Wickremesinghe announced a debt restructuring deal with India, France, Japan, and China, a critical step in economic recovery after the 2022 debt default. Under an IMF bailout program, the agreement is expected to revive stalled foreign projects. Sri Lanka declared bankruptcy in 2022 due to economic mismanagement, COVID-19 impacts, and tax cuts. The deal defers loan payments until 2028 and extends repayment until 2043. Supporters celebrated the announcement in Colombo as it promises to restart crucial infrastructure projects.
Farm loan waivers to negatively impact banks' asset quality: Macquarie
Macquarie Capital warned that farm loan waivers could negatively impact banks' asset quality, particularly for public sector banks. States like Telangana, Jharkhand, and Punjab are either implementing or considering such waivers. Macquarie's Suresh Ganapathy highlighted that these waivers create moral hazards and deteriorate credit culture, as even reliable farmers might start defaulting.
Noida extends rehab package offer for projects facing insolvency; Supertech, ATS, Logix Group among defaulters
The Uttar Pradesh government has extended the rehabilitation package for housing project developers facing insolvency proceedings by two weeks. The package offers incentives such as interest waivers and penalties during the pandemic in exchange for withdrawing cases with the NCLT or courts. The package aims to assist developers like Supertech, ATS, and Logix Group who have stalled projects and owe significant dues.
EPFO lowers penal charges on employers defaulting on PF, pension and insurance deposits
The notification issued by the ministry of labour and employment said the penal charges across three schemes of EPFO will be uniform and at the rate of 1% per month or 12% per annum from the date of notification as against 25% per annum until now for default period of six months and above. This will reduce the penal burden on employers.
NCLT orders insolvency proceeding against Supernova project developer Supertech Realtors
NCLT orders insolvency proceedings against Supertech Realtors for defaulting Rs 168.04 crore to Bank of Maharashtra in the Supernova project.
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Adani Electricity cuts power supply of 100 homes in Mumbai. Here's why
According to Adani Electricity, these defaulters are among the highest in any colony within their service areas, with outstanding bills accumulating over the years due to interest and penalties. A similar incident occurred in 2019 when power was cut off after residents stopped paying their bills, expecting developers to settle the dues once redevelopment projects were completed.
Adani Electricity cuts power supply of 100 homes in Mumbai. Here's why
According to Adani Electricity, these defaulters are among the highest in any colony within their service areas, with outstanding bills accumulating over the years due to interest and penalties. A similar incident occurred in 2019 when power was cut off after residents stopped paying their bills, expecting developers to settle the dues once redevelopment projects were completed.
NCLT to hear insolvency plea filed by Engine Lease Finance against SpiceJet on August 2
The National Company Law Tribunal (NCLT) has sent a notice to SpiceJet following an insolvency plea initiated by Engine Lease Finance BV, an aircraft engine lessor involved with the financially troubled airline.
NCLT admits personal insolvency plea against Rajkumar Dhoot of Videocon
The NCLT in Mumbai has admitted SBI's application against Rajkumar Dhoot of Videocon Group for a Rs 5,353-crore default by Videocon Industries, where Dhoot was a personal guarantor.
NCLT rejects JAL's claim of liquidity crunch due to delay in govt approvals, litigations
JAL has submitted that it is an "asset rich company", even after sale of cement plants to resolve the loans under Bucket 1 and Bucket 2A, assets like Real Estate Business - Noida and Greater Noida (about 11,000 flats) will remain with the company. Besides, it had other assets such as two 5 Five Star Hotels/Resort in Delhi, and one in Agra, two Golf Courses in Noida and Greater Noida, a Formula One Sports Complex and Cricket Stadium with Real Estate.
Some Indian brokers impose higher trading margins to withstand election volatility
Some large Indian brokerage firms have asked clients to furnish higher margins against trades this week to limit the risk of default ahead of the results of India's national elections, due on Tuesday.
Should you invest in tax-free bonds?
In order to take a decision to invest in tax-free bonds, Gaurav must weigh its features against other investments. As an investment providing tax-free income, these bonds may fare well when compared to bank fixed deposits and debt mutual funds.
Engine Lease Finance files fresh insolvency plea against SpiceJet
Engine Lease Finance is the latest of engine lessors that have approached courts accusing SpiceJet of defaulting on payments and seeking repossession of engines.
Delhi HC issues notice to ED on AAP leader Satyendar Jain's default bail plea
The Delhi High Court issued notice to the Enforcement Directorate on AAP leader Satyendar Kumar Jain's default bail plea in a Money Laundering Case, challenging the Rouse Avenue Court's order denying him default bail. Jain contends that the ED failed to complete the investigation within the statutory period, and filing an incomplete chargesheet violates his fundamental rights. He argues that even in a PMLA case, an accused is entitled to default bail if the investigation is not completed.
NCLT admits Srei's insolvency plea against Supreme Infrastructure BOT
The National Company Law Tribunal (NCLT) has accepted Srei Infrastructure Finance's request to commence a corporate insolvency resolution process (CIRP) against Supreme Infrastructure BOT due to its failure to repay a loan. Srei Infrastructure Finance had provided a term loan of Rs 150 crore to Supreme Infrastructure BOT for a duration of five years, earmarked for infrastructure projects.
Irdai gives in-principle nod for Hinduja Group-led IIHL bid for Reliance Capital takeover
The Insurance sector regulator IRDAI has conditionally approved Hinduja Group's IndusInd International Holdings Ltd (IIHL) for the acquisition of debt-ridden Reliance Capital.
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.
Bankruptcy court admits insolvency plea against listed firm India Steel Works
The Mumbai NCLT admits India Steel Works Ltd for insolvency resolution following an application by Stecol International Pvt Ltd. Vallabh N Sawana appointed as interim resolution professional. India Steel Works plans to appeal at NCLAT for urgent relief. Tribunal prohibits legal actions against India Steel Works, restraining asset disposal. Stecol International approached NCLT after India Steel Works defaulted on dues of Rs 2.6 crore.
Fitch Ratings affirms EXIM Bank's rating; outlook stable
Fitch Ratings on Friday affirmed the Export-Import Bank of India's (EXIM Bank) rating with a stable outlook, reflecting its high strategic importance to the state.
Paytm shares plummet 5%, hit all-time low as lending partners invoke loan guarantees
Paytm Share Price: Paytm shares plummeted to an all-time low after Aditya Birla Finance invoked loan guarantees due to repayment defaults. Other partners like Piramal Finance and Clix Capital have also terminated their partnerships, reflecting stress in Paytm's lending business amidst regulatory actions and market conditions.
FinMin studying Bombay HC order restricting PSBs from seeking look out circulars against wilful defaulters
The Finance Ministry is reviewing the Bombay High Court order banning public sector banks from seeking look-out circulars (LOCs) against wilful defaulters. The court deemed the order arbitrary and violative of a person's fundamental rights. The finance ministry is aware of the judgement and will assess it. The court held that an office memorandum empowering public sector banks to seek LOCs against default borrowers or their guaranteeees was unconstitutional.
Bombay HC rules banks can't issue Look Out Circulars against defaulters
The Bombay High Court declared that issuance of Look Out Circulars (LOC) by public sector banks against default borrowers without a specific law violates fundamental rights. The court quashed the Centre's decision empowering banks to request LOCs, stating executive actions cannot infringe constitutional rights without legal basis.
PSU lenders do not have the power to issue Look Out Circulars: Bombay HC
The Bombay High Court declared public sector lenders ineligible to issue Look Out Circulars (LOCs) under Central government office memoranda. While deeming this practice as 'arbitrary', the court upheld the constitutionality of the Central government's office memoranda. The ruling nullified all LOCs issued by public sector banks.
Lenders seek anonymity for officers tagging wilful defaulter accounts
Lenders seek RBI guidance on protecting officers' identities identifying defaulters. Recent court order mandates disclosing committee members. Indian Banks Association seeks advice too. Risks highlighted for officers personally named.
Hear out, show proof to borrowers suspected of 'wilful default': Bombay High Court
Bombay High Court's ruling alters banks' handling of wilful default cases. Evidence provision mandated, transparency increased. Concerns raised over borrowers challenging actions. RBI guidelines modification pending.
Banks should pass reasoned orders while declaring entity/person wilful defaulter, says Bombay HC
The bench was hearing a petition filed by Milind Patel, former joint managing director of IL&FS Financial Services Limited (IFIN), challenging an order passed by the Union Bank of India in February 2023 declaring the firm and its promoters wilful defaulters under the 2015 Master Circular issued by the RBI. The RBI's circular calls for banks/financial institutions to submit data on wilful defaulters on a quarterly basis, which is also communicated to the Securities and Exchange Board of India (SEBI).
IL&FS moves NCLAT, seeks protection for group companies from wilful defaulter tag
In its petition, IL&FS said it is aggrieved by the "blatant violation and disregard" of previous NCLAT orders by the banks. IL&FS also charged banks of taking procedural action under the garb of the RBI guidelines, and "harassing the Directors of the IL&FS companies".
RBI asks for info on gold loan frauds
The Reserve Bank of India has asked banks to share info on gold loan frauds and review lending processes after employees manipulated the system. A whistle-blower complaint revealed collusion with customers, manipulated repayments, and liens. RBI banned IIFL Finance from new gold loans. No response from RBI.
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