Type: IBC, RBI, Regulatory
Published On: October 12, 2022
The Reserve Bank of India's (RBI’s) revised norms for asset reconstruction companies (ARCs) will raise the bar for governance and disclosures, and may also trigger a shake-up in the ARC industry comprising 29 players due to enhanced capital requirements and stringent diligence.
Published On: September 29, 2022
Public sector bank (PSB) major, Punjab National Bank(PNB) on Thursday decided to sell its entire stake in Asset Reconstruction Company (India) (ARCIL) at an agreed price. PNB currently holds a 10.01% stake in ARCIL. The bank plans to divest its stake in the ARC by December 2022-end. On the completion of divestment, PNB will cease to be a sponsor/shareholder in ARCIL as the shareholding will be NIL after the stake sale. The transaction will be carried in cash. The bank will divest about 3,25,06,486 equity shares or 10.01% shareholding in ARCIL.
Kailash Babar & Maulik Vyas
The Economic Times
Type: Corporate NPA, Resolution
Published On: August 13, 2022
The Supreme Court has set aside the ruling of the National Company Law Appellate Tribunal (NCLAT) rejecting Asset Reconstruction Co (India) Ltd’s claim in Tulip Star Hotels’ insolvency case. The appellate tribunal had accepted the hotel operator’s claim that the ARC filed its case against the company under the Insolvency and Bankruptcy Code (IBC) after the limitation period of three years from the date of declaring the asset as non-performing.
Live Law News Network
Published On: April 27, 2022
The Supreme Court on Tuesday set aside a judgement delivered by a Full Bench of the Gujarat High Court which had held that stamp duty has to be independently paid for a Power of Attorney executed along with a deed assigning debt, even if stamp duty has been paid on the assignment deed. In this case, the Oriental Bank of Commerce had assigned a debt to an Asset Reconstruction Company(ARC) under Section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). Along with the assignment deed, the Bank had executed an irrevocable Power of Attorney (PoA) in favour of the company, empowering the assignee, as the agent of the Bank, to sell any immovable property.
The Economic Times
Edition: Print and Online
Type: Corporate NPA
Published On: April 20, 2022
Punjab & Sind Bank has declared outstanding dues of around ₹1,234 Crore to the Srei group firms – Srei Infrastructure Finance and Srei Equipment Finance -as fraud and reported it to Reserve Bank of India. In a stock market notification on Tuesday, the bank said the NPA accounts, SREI Infrastructure Finance Ltd (SIFL) with outstanding dues of ₹510 Crore and SREI Equipment Finance Ltd (SEFL) with outstanding dues of ₹724 Crore, have been declared as fraud. The accounts have been fully provided for as per prescribed prudential norms, it said. According to sources in Srei, the decision taken by the bank is rather “unfortunate” particularly when the KPMG report, on which the decision has seemingly been based, is still sub-judice.