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Reliance Capital bidders flag off multiple legal issues involving Rs 20,000 crore liability

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 As the deadline for the submission of binding bids approaches, the bidders of Reliance Capital, including Hinduja, Torrent, Zurich, and Piramal have flagged off various legal issues to the lenders and Administrator, involving Reliance Capital and its subsidiaries.

These legal issues involve a cumulative liability of Rs 22,000 crore, and they need quick resolution for the successful closure of RCAP’s resolution plan.

According to sources, the bidders are likely to make a condition precedent of these issues to any payment to the lenders.

The two big issues flagged off by the bidders are the impending resolution of Reliance Home Finance Ltd (RHFL) and the legal battle between the Administrator and IDBI Trusteeship for the control of Reliance General Insurance’s shares, which is pending in the NCLT.

Authum Investment and Infrastructure Ltd had been selected as the successful bidder for RHFL in June 2021, but the resolution process has not yet been completed due to various litigation involving the debenture holders. The total debt of RHFL is Rs 11,500 crore.

As far as Reliance General Insurance is concerned, the Independent actuarial Tower Watson has valued this business at Rs 9,500 crore.

Apart from these, the two other legal cases flagged off by the bidders are Axis Bank’s claim of Rs 150 crore against Reliance Capital, which the bank has lost in the NCLT, and a case involving Administrator and IndusInd Bank, involving arbitration of Nippon Asset Management shares. The total liability in this matter is Rs 650 crore.

The last date for submitting binding bids is November 28.

The quick resolution of these legal matters is a challenge for the Administrator for the successful closure of the RCAP resolution plan.

Reliance Capital had received 14 non-binding bids for its multiple businesses. Six companies had submitted bids for the entire company, while the rest of the bidders had submitted bids for its multiple subsidiaries.

Torrent, IndusInd, Oaktree, Cosmea Financial, Authum Investment, and B Right Real Estate have submitted bids in the range of Rs 4,000 crore to Rs 4,500 crore for Reliance Capital’s entire assets.

For Reliance General Insurance business, Piramal Finance has bid Rs 3,600 crore, while Zurich Insurance’s bid is Rs 3,700 crore.

The third bidder, Advent, has bid Rs 7,000 crore for Reliance General Insurance.

Jindal Steel and Power and UVARC have submitted bids for Reliance Capital’s ARC business.

For other assorted assets of Reliance Capital, 3 bidders — Choice Equity, Global Fincap, and Grand Bhawan — have submitted the bids.

RCAP’s life insurance business, RNLIC, had not received any bid, but later on Aditya Birla Capital and Nippon Life Insurance, which is already holding 49 per cent equity in RNLIC, have evinced interest in acquiring RCAP’s 51 per cent stake in this business.

At the beginning of the resolution process of Reliance Capital over 54 companies had submitted Expression of Interest (EOI) for its various assets, out of which only 14 are now in the fray.

Crime

WBSSC’s notification for fresh teachers’ recruitment challenged at Calcutta HC

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Kolkata, June 3: The notification issued by the West Bengal School Service Commission (WBSSC) to fill vacant posts of teachers in state-run schools has been challenged at the Calcutta High Court on Tuesday.

The single-judge vacation bench of Justice Raja Basu Chowdhury admitted the petition. The matter is likely to come up for a hearing at his bench on June 5.

The petitioner claimed that certain points in the notification, especially those as regards to changed weightage criteria in the distribution of total marks in the recruitment process, violated the Supreme Court’s directives on fresh recruitments.

The main ground on which the notification was challenged was that the weightage criteria in the distribution of total marks had changed from those in 2016.

As per the new notification issued last week, the written examination in the fresh recruitment process will carry 60 marks, as against 55 for the 2016 panel.

Secondly, the weightage criterion for educational qualification in the fresh recruitment process is just 10 as against 35 for the 2016 panel.

Most importantly, two new weightage criteria, each carrying 10 marks, “past teaching experience” and “lecture demonstration”, have been introduced.

Soon after the notification was issued, several legal minds apprehended that the notification may face legal hurdles because of the changes in weightage criteria in total marks distribution.

Legal minds felt that while two new weightage criteria were introduced to give an advantage to the teachers from the 2016 panel who lost their jobs. They opined that the changed criteria would be disadvantageous for fresher candidates.

Bringing about changes in the weightage criteria was grossly illegal since the same weightage criteria, which applied to the 2016 panel, should also be there in the fresh recruitment process, they said.

Now their apprehensions have come true after a petition challenging the notification was filed at the Calcutta High Court, exactly on the points highlighted.

On April 3 this year, the Supreme Court’s division bench of erstwhile Chief Justice of India Sanjiv Khanna and Justice Sanjay Kumar upheld a previous order by the Calcutta High Court’s division bench of Justice Debangshu Basak and Justice Shabbar Rashidi cancelling 25,753 school jobs in West Bengal.

The Apex Court also accepted the observation of the Calcutta High Court that the entire panel of 25,753 candidates had to be cancelled because of the failure of the state government and the commission to segregate the “untainted” candidates from the “tainted” ones.

The state government and West Bengal School Service Commission (WBSSC) had already filed review petitions at the Apex Court on this issue.

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International

Australian scientists use underwater robots to explore remote reefs in South Pacific expedition

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Sydney, June 3: Australian scientists are using cutting-edge underwater robots to explore remote and largely uncharted reef systems in the South Pacific, the University of Sydney said on Tuesday.

As part of a major international expedition, Australian scientists are mapping deep-sea habitats and biodiversity near Norfolk Island, an isolated Australian territory 1,600 km northeast of Sydney, one of the South Pacific’s most ecologically important regions, according to a university press release.

Its location and mix of tropical and temperate ecosystems make it key to tracking species shifts and climate change impacts, the release said.

Equipped with high-resolution cameras and sensors, the Autonomous Underwater Vehicles are capturing thousands of images to create 3D maps of the seafloor and document marine life in unprecedented detail, it said, adding underwater robots serve as the eyes and hands of scientists, safely exploring deep-sea areas beyond the reach of human divers.

“It’s the first time that parts of the seabed in the Norfolk Ridge will be imaged in this detail,” said Stefan Williams from the University of Sydney’s Australian Center for Robotics.

The expedition unites scientists from Australia and New Zealand to map the seafloor and collect marine specimens such as fish, corals, molluscs and algae to enhance knowledge of regional biodiversity, the researchers said.

“Norfolk Island is a key oceanic stepping stone for species between tropical New Caledonia and temperate New Zealand,” said Shane Ahyong, acting chief scientist at the Australian Museum Research Institute, leading the second phase of the Norfolk Island scientific expedition.

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National

Kerala steps up Covid-19 testing as cases increase

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Thiruvananthapuram, June 3: With the number of Covid-19 positive cases increasing in Kerala, the Health Department has decided to come out with fresh protocols.

With around 1,435 patients turning positive for the virus, Kerala has the highest number of Covid-19 cases in the country.

The directions have been given that all patients arriving with a fever at hospitals have to undergo Covid-19 tests.

Since fresh Covid cases started registering till now, eight Covid-positive patients have passed away.

Those patients coming with a fever will have to do an antigen test first, and if it is positive, they will have to take the RT-PCR test.

An advisory has been issued that those having health issues should use masks.

By-standers of those who are admitted to hospitals have to use masks, and all Covid positive cases have to be admitted to a separate ward.

Another reason why the health authorities decided to come out with fresh directions is that educational institutions in the state have opened on Monday, and a fever is raging in the state.

Meanwhile, while the fresh guidelines came out on Tuesday, in most private hospitals, all patients undergoing surgery had to come with a Covid-19 negative certificate, and this was being done as a matter of abundant caution.

Notably, the Covid-19 cases in the country have risen to 4,026 till 8 a.m. on Tuesday, according to the Ministry of Health and Family Welfare.

Five fresh deaths were reported in the past 24 hours, taking the total number of fatalities to 37.

On Monday, Health experts assured that there is no need to panic as the current infection wave is unlikely to cause a higher burden on hospitals.

This fresh wave has been caused by two new coronavirus variants, NB.1.8.1 and LF.7, mutations of the Omicron offspring JN.1 variant. Both were found in India, as per data from the Indian SARS-CoV-2 Genomics Consortium (INSACOG), set up under the Ministry of Health.

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