Insolvency and Bankruptcy Board of India

08.08.2022

Insolvency

IBBI and IIMB Invites Research Papers for 2nd International Research Conference on Insolvency and Bankruptcy

MANU/NMIC/0303/2022

The Insolvency and Bankruptcy Board of India (IBBI) and Indian Institute of Management, Bangalore (IIMB) are jointly organising an international conference on insolvency and bankruptcy to promote research and discourse in the field of insolvency and bankruptcy from 23rd to 25th February, 2023.

The Insolvency and Bankruptcy Code, 2016 (Code / IBC) is a landmark legislation that has had an exceptional journey, reforming and strengthening the insolvency and bankruptcy regime in India. It has created an environment that encourages entrepreneurship and is conducive to appropriate risk taking. Starting from the implementation of the Code, setting up of new organisation and complete infrastructure to handle insolvency activities, the Indian regulatory environment for insolvency and bankruptcy of corporates, has witnessed a remarkable transition from an archaic resolution and liquidation process to a modern one attempting and facilitating faster resolution of distressed companies and assets.

There is now a growing body of literature that aims to address the gaps in theoretical aspects of the insolvency law and its practice and impact on the ground. Deep research can bring together evidence to support policy makers in achieving real world outcomes. To promote research and discourse in the field of insolvency and bankruptcy, the three-day international research conference to be held by IBBI and IIMB, calls upon academics & researchers, lawyers, economists, regulators, to submit research proposals. This conference is an opportunity to understand the importance and impact of IBC in its totality through the multidisciplinary research papers.

Releasing the Brochure of the conference, Chairperson, IBBI mentioned that evidentiary or research-based foundations for policy making, devoid of discretion, fosters transparency and help in bringing complete harmony between policy initiatives and market expectations. To bridge the gap between theory and practice, it is important to analyse the practical cases and examine the need to make changes in theory. In an evolving area of insolvency and bankruptcy, there is a need to analyse literature and market information to inform future policy making. Advancing the ongoing efforts of IBBI, the international research conference organised in collaboration with IIMB which houses unparalleled faculties and scholarships, will attract wide interest from students and experts in the field of insolvency and bankruptcy. The academic rigour of the papers presented at the conference will offer new insights and analysis that will shape the future course of policy making. The brochure can be accessed on IBBI's website.

About the IBBI

The IBBI was established on 1st October, 2016 under the Code. It is one of the four key pillars of the ecosystem responsible for implementation of the Code that consolidates and amends the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximization of the value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders. It has regulatory oversight over the Insolvency Professionals, Insolvency Professional Agencies, Insolvency Professional Entities and Information Utilities. It writes and enforces rules for processes, namely, corporate insolvency resolution, corporate liquidation, individual insolvency resolution and individual bankruptcy under the Code.

About IIM Bangalore

The Indian Institute of Management Bangalore is a leading graduate school of management in Asia. Under the IIM Act of 2017, IIMB is an Institute of National Importance. Located in India's high technology capital, IIMB is committed to make deep social impact using technology-enabled education. It is the first management school in India to offer Massive Open Online Courses (MOOCs) on the edX platform. It is also coordinating institute for management education for SWAYAM, GoI's online education platform. Along with 11 disciplinary areas, IIMB has ten centres of excellence that offer courses and conduct research on interesting questions facing various sectors of industry.

Tags : International Research Conference Invitation

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Reserve Bank of India

08.08.2022

Banking

RBI imposes monetary penalty on Warud Urban Co-operative Bank Ltd., Warud (Maharashtra)

MANU/RPRL/0351/2022

The Reserve Bank of India (RBl) has imposed, by an order dated August 05, 2022, a monetary penalty of Rs. 1.00 lakh (Rupees One lakh only) on Warud Urban Co-operative Bank Ltd., Warud, Maharashtra (the bank) for contravention of/non-compliance with the directions issued by the RBI to Urban Co-operative Banks on Exposure Norms & Statutory/Other Restrictions and Know Your Customer (KYC). This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI.

This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

Background

The Risk Assessment Report of the bank based on its financial position as on March 31, 2021, revealed, inter alia, that the bank had (i) not complied with the prudential inter-bank counter party limit and (ii) not put in place a robust software for effective identification and reporting of suspicious transactions in contravention of/non-compliance with the directions issued by RBI on Exposure Norms & Statutory/Other Restrictions-UCBs and Know Your Customer (KYC). Based on the same, a Notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for non-compliance with the directions.

After considering the bank's replies and oral submissions made during personal hearing, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty

Tags : Penalty Imposition Non-compliance

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Ministry of Finance 

08.08.2022

Excise

Passenger Name Record Information Regulations, 2022

MANU/CUSN/0070/2022

In exercise of the powers conferred by sub-section (1) read with clause (ab) of sub-section (2) of section 157 of the Customs Act, 1962 (52 of 1962), the Central Board of Indirect Taxes and Customs hereby makes the following regulations, namely:-

1. Short title and commencement.--

(1) These regulations may be called as the Passenger Name Record Information Regulations, 2022.

(2) They shall come into force from the date of their publication in the Official Gazette.

2. Definitions. --

(1) In these regulations, unless the context otherwise requires,-

(a) "Act" means the Customs Act, 1962 (52 of 1962);

(b) "Aircraft operator" means a person or organization or enterprise engaged in or offering to engage in the operation of aircraft other than,-

(i) A "State aircraft" as defined in the Aircraft Rules, 1937; or

(ii) An aircraft, which is used for the transportation of passengers or goods by air, and specifically excluded for the purposes of these regulations by an order of the Board; to, from, or through India;

(c) "authorized agent" includes a person who is authorized by, or on behalf of such aircraft operator to undertake all acts connected with the entry and clearance of the operator's aircraft, crew, passengers, cargo, mail, baggage (including unaccompanied baggage) or stores;

(d) "crew member' means a person assigned on duty onboard an aircraft;

(e) "Departure Control System" means the system, containing check-in information such as seat number and baggage information, used to check passengers onto flights;

(f) "International flight" means a flight,-

(i) From a place within India to a place outside India; or

(ii) From a place outside India to a place within India;

(g) "National Customs Targeting Centre-Passenger" means National Customs Targeting Centre-Passenger referred to under regulation 3;

(h) "Passenger" includes any person, other than crew member, in transfer or transit, carried or to be carried, in an aircraft on an international flight, with the consent, such consent being manifested by that person's registration in the passengers list, of the aircraft operator;

(i) "Reservation system" means the aircraft operator's internal system, in which passenger name record information are collected for the purpose of reservations;

(j) "time of departure" or "departure time means the time of take-off from the last point of embarkation of persons or goods before the aircraft arrives in India or the time of take-off from India, as the case may be, in the case of an aircraft which carries persons or goods;

(2) The words and expressions used herein and not defined in these regulations but defined in the Act shall have the same meanings respectively assigned to them in the Act.

3. National Customs Targeting Centre-Passenger.--

The National Customs Targeting Centre-Passenger established by the Board to receive and process passenger name record information along with any other information relevant for risk analysis of passengers for the purpose of,-

(a) The prevention, detection, investigation and prosecution of offences under the Act and the rules and regulations made there under, or

(b) The law enforcement agencies or government departments of India or any other country may specify for the purposes of regulation 10.

4. Registration of aircraft operator.--

Every aircraft operator shall register with the proper officer in the FORM as per Annexure-I to these regulations.

5. Transmission of passenger name record information.--

(1) Every aircraft operator shall transfer the passenger name record information, as per list in Annexure-II to these regulations, of passengers they have already collected such information in the normal course of business operations, to the designated Customs systems by push method using PNRGOV EDIFACT message format.

(2) The aircraft operator where the flight is code-shared to any other aircraft operator shall transfer the information specified in sub-regulation (1).

(3) In the event of technical failure, passenger name record information shall be transferred by any other appropriate means, as may be directed by the National Customs Targeting Centre-Passenger, ensuring an appropriate level of information security.

(4) Every aircraft operator shall transfer passenger name record information not later than twenty four hours before the departure time; or at the departure time - wheels off.

Explanation,- For the purpose of this regulation,-

(a) "PNRGOV EDIFACT" means a message of any standard electronic message format endorsed jointly by World Customs Organisation, International Civil Aviation Organisation and International Air Transport Association which can be efficiently transmitted;

(b) "Push method" means the method whereby an aircraft operator transfers passenger name record information from the departure control system or the reservation system of such aircraft operator to database of the National Customs Targeting Centre-Passenger.

6. Supply of missing information, if any.--

(1) Every aircraft operator or its authorised agent who becomes aware, before or at the time of departure, that any information provided by them under these regulations is incomplete or inaccurate, shall immediately provide such complete or accurate information in the manner as specified in regulation 5.

7. Privacy and protection of information.--

(1) The passenger name record information received by Customs designated system shall be subject to the strict information privacy and protection in accordance with the provisions of any law for the time being in force.

(2) Processing of passenger name record information revealing a person's race or ethnic origin, political opinions, religion or philosophical beliefs, trade union membership, health, sexual life or sexual orientation, shall not be permitted.

(3) The passenger name record information shall be received, stored, processed and disseminated in a secure system accessible only to the duly authorized officers by establishing robust procedure to protect the privacy of passengers and crew members by the National Customs Targeting Centre-Passenger.

8. Period of retention of data.--

(1) The passenger name record information received in Customs designated system shall be retained for a maximum period of five years from the date of such receipt:

Provided that the provisions under this sub-regulation shall not be applicable, if such information is required in the course of an investigation, prosecution, or any court proceeding.

(2) After expiry of five years specified under sub-regulation (1), it shall be disposed of by depersonalisation or anonymisation through masking out the relevant information which can serve to identify directly the passenger to whom the passenger name record information relates:

Provided that such depersonalised or anonymised information may be repersonalised or unmasked when used in connection with an identifiable case, threat or risk for the specified purposes:

Provided further that the information received may be used for further analysis and study only by an authorized officer not below the rank of Principal Additional Director General or Additional Director General of the National Customs Targeting Centre-Passenger.

9. Audit.--

There shall be an extensive independent system audit and security audit on annual basis, to prevent any misuse of the passenger name record information by an officer of the rank of Principal Additional Director General or Additional Director General of the National Customs Targeting Centre-Passenger appointed by the Director General of Analytics and Risk Management:

Provided that the said officer shall not carry out both the system audit and security audit.

10. Sharing of information with other law enforcement agencies or foreign states.--

When passenger name record information relates to any offence, under any law for the time being in force, at national or international level, the National Customs Targeting Centre-Passenger, may share the relevant information on a case-to-case basis with other law enforcement agencies or government departments of India or any other country.

Provided that sharing of such relevant passenger name record information with other law enforcement agencies or government departments of India or any other country shall be subject to maintenance of same level of information privacy and protection of information and safeguards:

Provided further that such other law enforcement agencies or government departments of India or other countries shall, while seeking information, specify the purpose for which such information is being sought.

11. Penalty.--

Without prejudice to any other action that may be taken against an aircraft operator or his authorised agent under the provisions of the Act, or any other law for the time being in force, the Principal Additional Director General or Additional Director General of the National Customs Targeting Centre-Passenger, may impose a penalty which shall not be less than twenty five thousand rupees but not more fifty thousand rupees, for each act of non-compliance, on an aircraft operator or his authorised agent who contravenes or fail to comply with any provisions of these regulations.

Tags : Passenger Name Record Information Regulations

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Press Information Bureau

08.08.2022

Commercial

Implementation of Schemes for MSMEs Under Atma Nirbhar Bharat

MANU/PIBU/3544/2022

The Government has taken a number of initiatives under the Aatma Nirbhar Bharat Abhiyan to promote the Micro, Small and Medium Enterprises (MSMEs) sector in the country. The details of two major schemes are as under:

i. Emergency Credit Line Guarantee Scheme (ECLGS): The Emergency Credit Line Guarantee Scheme (ECLGS) was announced as part of the Aatma Nirbhar Bharat Package in May, 2020 to support eligible MSMEs and other business enterprises to meet their operational liabilities and resume businesses in view of the distress caused by the COVID-19 crisis. This scheme covers all the sectors of the economy. Under this, 100% guarantee is provided to Member Lending Institutions (MLIs) in respect of the credit facility extended by them to eligible borrowers. The scheme is valid till 31.03.2023.

ii. Self Reliant India (SRI) Fund: The Government of India has announced Fund of Funds with the nomenclature Self Reliant India (SRI) Fund to infuse equity funding in MSMEs which have the potential and viability to grow. Under this scheme Government has a provision of corpus of Rs. 10,000 crore from Government of India.

The Ministry of MSME on 7th September, 2021 assigned a study to Small Industries Development Bank of India (SIDBI) to assess the impact of change in MSME classification on the MSME Sector. The terms of reference of the said study inter-alia also included assessment of losses suffered by MSME sector due to Covid-19 pandemic. The said study was based on a survey conducted by SIDBI taking a random sample pool comprising 1,029 MSMEs spread across 20 States and 2 Union Territories. The report of the study submitted on 27th January, 2022, reveals that 67 percent of the respondent MSMEs were temporarily closed for upto a period of 3 months. The study reveals that around 65 percent of the MSMEs surveyed, have availed the benefits under Emergency Credit Line Guarantee Scheme and around 36 percent of the respondents also availed loans under the Credit Guarantee Fund Trust for Micro and Small Enterprises scheme.

Tags : Implementation Schemes MSMEs

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Press Information Bureau

08.08.2022

Insolvency

IBBI disposes off 6,172 complaints and grievances out of 6,231 against service providers under IBC

MANU/PIBU/3598/2022

The Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations, 2017 enable stakeholders to file a grievance or a complaint against service providers under the IBC. This was stated by the Union Minister of State for Corporate Affairs Shri Rao Inderjit Singh in a written reply to a question in Lok Sabha today.

Besides this, the Minister stated, Insolvency and Bankruptcy Board of India (IBBI, the Regulator) also receives complaints and grievances from Centralized Public Grievance Redress and Monitoring System (CPGRAM), Prime Minister's Office, MCA and other authorities. Till 31st July, 2022, the IBBI had received 6,231 such complaints and grievances, of which 6,172 have been disposed after examination.

The Minister said that the Ministry of Corporate Affairs does not have any role in corporate insolvency resolution process (CIRP) of a corporate debtor (CD) under the provisions of the Insolvency and Bankruptcy Code, 2016 (the Code). CD undergoing CIRP is resolved through a resolution plan formulated by resolution applicants based on market driven process.

The Minister further stated that the Committee of Creditors (CoC) within its commercial wisdom assesses the feasibility and viability of the resolution plan submitted by the proposed resolution applicant which is then approved by the Adjudicating Authority (AA). Further, the realisation by creditors through CIRP under the Code is dependent on quality assets at the time of its resolution, the Minister stated.

Giving more details, the Minister stated that no such investigation has been initiated as section 29A of the Code enlists certain categories of undesirable persons which include related parties ineligible to submit a resolution plan during the CIRP. Regulation 36A(8) of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 imposes a duty on Resolution Professional (RP) to conduct due diligence to satisfy themselves that the prospective resolution applicant is not ineligible under section 29A of the Code. The resolution plan approved by the CoC, within its commercial wisdom is then approved by AA under section 31 of the Code thereby ensuring that any undesirable persons under section 29A are unable to take over the CD. Likewise, during liquidation proceedings of CD, the proviso to Section 35(1)(f) bars a liquidator from selling immovable and movable property to any person who is ineligible to be a resolution applicant.

Further, the Minister stated that as per information available, Directorate of Enforcement has received one complaint against an RP of one CIRP in which appropriate action under applicable law has been taken. Further, CBI has received one complaint regarding abuse of process in one CIRP matter which was forwarded to the Regulator and on examination; the Regulator has not found any actionable material.

Tags : Complaints Service providers Disposal

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Press Information Bureau

08.08.2022

Civil

Central Government takes various initiatives to control construction costs of affordable housing projects

MANU/PIBU/3541/2022

Central Government has taken measures to control the rising prices of construction materials of affordable housing including Pradhan Mantri Awas Yojana - Urban (PMAY-U). In Union Budget 2021-22 and 2022-23, Customs Duty has been reduced uniformly to 7.5% on Semis, Flat and Long products of non-alloy, alloy and stainless steels. Export duty on iron ores / concentrates and iron ore pellets has been raised to 50% and 45% respectively. In addition, 15% export duty has been imposed on pig iron and several steel products. Moreover, to give relief to secondary and MSME sector steel industry engaged in housing/construction sector, TMT bars below 8 mm have been exempted from the purview of the Quality Control Order, as these are primarily used for non-critical applications. Government has also taken steps to increase availability of iron and steel which, inter-alia, includes Mining and Mineral Policy reforms to ensure enhanced production and availability of iron ore.

Moreover, Central Government has been taking various initiatives to control construction costs of affordable housing projects including PMAY-U such as reduction in Goods and Service Tax (GST) on under-construction Affordable Housing projects from existing 8% to 1% without Input Tax Credit (ITC) and in case of other housing projects, 5% from existing 12% without ITC, increase in Priority Sector Lending for Affordable Housing Project from Rs. 28 lakh to Rs. 35 lakh in metros and from Rs. 20 lakh to Rs. 25 lakh in non-metros; Setup of Affordable Housing Fund in National Housing Bank.

Tags : Initiatives Construction costs Housing projects

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