The Ministry of Corporate Affairs (MCA) has urged the National Company Law Appellate Tribunal (NCLAT) to approve the revised formula for sharing resolution proceeds from the disposal of bankrupt IL&FS group firms among its creditors in a fair and equitable manner.
The revised mechanism would provide for distribution of residual proceeds over and above liquidation value of assets to other than secured creditors.
The MCA has submitted the fresh affidavit in the company law tribunal representing the new IL&FS Board which took over the group in 2018.
In its affidavit filed on January 9, Rajesh Tiwari, Joint Director (Western Region) in MCA, also submitted to remove Power Finance Corporation (PFC) from among “top five creditors” as IL&FS group shares in Wind SPVs have been transferred to ORIX.
The affidavit has appealed the tribunal to declare and direct all financial creditors of the relevant IL&FS group entity, including group lenders, to be part of the Creditors’ Committee constituted or to be constituted in accordance with the modified resolution framework.
Some of the creditors had earlier objected to internal IL&FS group companies as creditors as they had been involved in alleged financial bungling or fraud.
Inclusion of internal group firms among the secured creditors and part of Creditors’ Committee would ensure they get the share of the proceeds realised by sale, disposal or closure of the defaulted companies.
Among other key submissions is a direction for first making payments towards the resolution process cost involving financial and transaction advisors, legal counsels and resolution consultants, among others. This will be followed by the creditors in accordance with Section 53 of Insolvency and Bankruptcy Code (IBC).
“Third, the remaining sale proceeds/termination amount/settlement amount to be distributed pro-rata to each class of creditors of the relevant IL&FS Group entity, adjusted for any recovery made by the relevant creditors on account of distribution under Section 53 of IBC, as contemplated above,” the affidavit said.
IL&FS group, which has about Rs 91,000 crore in debt, is in the bankruptcy court following its defaults that shook the entire financial sector of the country and triggered the NBFC liquidity crisis.
During the period July 2018 to September 2018, two of its subsidiaries reported having trouble in paying back loans and inter-corporate deposits to lenders. This was followed by multiple subsidiaries defaulting and the group heading to bankruptcy.
Petrol, diesel prices rise again, burn bigger holes in consumers’ pockets
Petrol and diesel price rose again on Friday taking its retail rates to record high levels across the country affecting consumers this festive season.
Accordingly, in the national capital, petrol and diesel prices increased by 35 paisa per litre to Rs 105.14 per litre and Rs 93.87 per litre, respectively.
In India’s financial capital of Mumbai, petrol became costlier by 34 paisa per litre to Rs 111.09 a litre on Friday, the highest across all the four metro cities. Diesel also costs Rs 101.77 for one litre in Mumbai.
The price hike on Friday is for a second consecutive day after the rates remained static on Tuesday and Wednesday.
Diesel prices now have increased on 17 out of the last 21 days taking up its retail price by Rs 5.25 per litre in Delhi.
With diesel price rising sharply, the fuel is now available at over Rs 100 a litre in several parts of the country. This dubious distinction was earlier available to petrol that had crossed Rs 100 a litre mark across the country a few months earlier.
Petrol prices had maintained stability since September 5 but oil companies finally raised its pump prices last week and this week given a spurt in the product prices lately. Petrol prices have also risen on 14 of the previous 17 days taking up its pump price by Rs 3.95 per litre.
OMCs had preferred to maintain their watch prices on global oil situation before making any revision in prices. This is the reason why petrol prices were not revised for last three weeks. But extreme volatility in global oil price movement has now pushed OMCs to effect the increase.
Crude price has been on a surge rising over three year high level of over $84.5 a barrel now. Since September 5 when both petrol and diesel prices were revised, the price of petrol and diesel in the international market is higher by around $9-10 per barrel as compared to average prices during August.
Petrol, diesel get more expensive, retail prices up again 35 paise/ltr
Petrol and diesel prices rose again on Thursday after a two-day break, taking its retail rates to record high levels across the country.
Accordingly, in the national capital, petrol and diesel prices increased by 35 paise per litre to Rs 104.79 per litre and Rs 93.53 per litre respectively.
In India’s financial capital, Mumbai, petrol became costlier by 34 paise per litre to Rs 110.75 a litre on Thursday, the highest across all the four metro cities. Diesel also costs Rs 101.40 for one litre in Mumbai.
The price increase on Thursday has come after fuel prices remained static for the past couple of days.
Diesel prices have now increased 16 out of the last 20 days taking up its retail price by Rs 4.90 per litre in Delhi. The price of diesel has increased between 20-30 paise per litre so far, but, since Wednesday last week it has been increasing by 35 paise per litre.
With diesel prices rising sharply, the fuel is now available at over Rs 100 a litre in several parts of the country. This dubious distinction was earlier available to petrol that had crossed Rs 100 a litre-mark across the country a few months earlier.
Petrol prices had maintained stability since September 5 but oil companies finally raised the pump prices last week and this week given a spurt in the product prices lately. Petrol prices have also risen on 13 of the previous 16 days taking up the pump price by Rs 3.60 per litre.
OMCs had preferred to maintain their watch prices on global oil situation before making any revision in prices. This is the reason why petrol prices were not revised for the last three weeks. But extreme volatility in global oil price movement has now pushed OMCs to effect the increase.
Crude prices have been on a surge rising over a three-year high level of over $ 83.7 a barrel now. Since September 5, when both petrol and diesel prices were revised, the price both in the international market was higher by around $9-10 per barrel as compared to average prices during August.
Sitharaman attends FMCBG meeting in Washington D.C.
Union Minister for Finance & Corporate Affairs Nirmala Sitharaman participated in the 4th G20 Finance Ministers and Central Bank Governors (FMCBG) Meeting under the Italian Presidency held on October 13 in Washington D.C. on the sidelines of the IMF-World Bank Annual Meetings.
The meeting was the final FMCBG Meeting under the G20 Italian Presidency and saw discussions and agreements on various issues concerning global economic recovery, pandemic support to vulnerable countries, global health, climate action, international taxation and financial sector issues.
For a sustained recovery from the pandemic, the G20 Finance Ministers and Central Bank Governors agreed to avoid any premature withdrawal of support measures, while preserving financial stability and long-term fiscal sustainability, and safeguarding against downside risks and negative spillovers.
Sitharaman noted that for transitioning from crisis to recovery, one of the major challenges is ensuring equitable access to vaccines for all. The Finance Minister suggested that keeping up the support, building resilience, enhancing productivity and structural reforms should be our policy goals.
The Finance Minister appreciated the role of G20 in rallying pandemic response and supporting vulnerable countries through debt relief measures and the new SDR allocation. Going forward, Sitharaman suggested on focusing efforts on making the benefits reach the intended countries.
The Finance Minister joined the G20 Ministers and Governors in agreeing on the need for strengthening efforts to counter climate change. Sitharaman emphasised that considering the varied policy spaces and different starting points of countries, the centrality of climate justice based on United Nations’ Framework Convention on Climate Change and principles of Paris Agreement would be critical for taking forward discussions towards successful outcomes.
For addressing tax challenges arising from the digitalisation of the economy, the G20 FMCBGs endorsed the final agreement as set out in the Statement on a two-pillar solution and the Detailed Implementation Plan released by the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) on October 8, 2021.
The meeting concluded with the G20 FMCBGs reaffirming their commitment to advance the forward-looking agenda set in the G20 Action Plan to steer the global economy towards a strong, sustainable, balanced and inclusive growth.
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