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Confused or Crafty? Rahul Gandhi hits out at Communist ‘allies’ in Kerala

OpIndia Staff
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Confused or Crafty? Rahul Gandhi hits out at Communist ‘allies’ in Kerala

Congress President Rahul Gandhi today went all guns blazing against the Communist Party of India(M) in a rally held in Kerala’s Kozhikode. Rahul Gandhi alleged that the ideology of CPM has now become ‘defunct’ and that CPM members should realise that they are now ‘grasping at straws’.


Training his guns at the CPM, Rahul Gandhi asserted that CPM has been using violence as an instrument of its state policy to repress dissent. Rahul claimed that the CPM is only capable of unleashing violence, while when it came to offering aide during the Kerala floods, the CPM was conspicuously incompetent in helping the flood victims. Rahul further added that CPM is disconnected with the ground reality and that it will take them some time to realise that their fossilised ideology is no longer bought by the people of Kerala.


However, if the reports are to be believed, Congress is trying to stitch an alliance with CPM party in West Bengal. With the dispute over the Lok Sabha seats in Raigadh and Murshidabad settling in favour of CPM, it is widely believed that agreement between Congress and CPM for an alliance may be formally declared in the coming few days. Last month, Kerala Congress Unit President Mullapally Ramachandran talked about mutual understanding reached between Congress and CPM to dent BJP’s chances of making inroads in the southern state in the upcoming Lok Sabha elections.

Thus, when Rahul Gandhi attacks CPM in Kerala, one cannot help but wonder what his true intentions are. On one hand, Rahul Gandhi continues his diatribes against CPM, whereas on the other his party leaders continue to make overtures with the CPM leaders to discuss the modalities of the coalition. Rahul, perhaps, acknowledges the fact that the country is shifting away from the communist ideology, as evident from the recent elections results in Tripura, which was once a communist bastion, and this could be just an election gimmick while stitching an alliance with the Communists.

With a slew of Congress leaders deserting the ship and regional political parties rejecting any possibility of a coalition with Congress, is Rahul Gandhi crazy to publicly excoriate one of its potential alliance partners to take on the might of the Modi juggernaut and risk another rebuff? Or is this crafty Rahul’s guile to garner votes by overtly appearing to distance himself and his party from the fading communist ideology, while privately consorting with them as a part of Congress party’s political expediency to depose Modi?

Congress IT cell head circulates clip by Kunal Kamra, Twitterati wonder if ‘neutral comedians’ are part of IT cell

OpIndia Staff
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Congress IT cell head circulates clip by Kunal Kamra, Twitterati wonder if ‘neutral comedians’ are part of IT cell

Social media today was abuzz with speculations whether the self-proclaimed ‘neutral comedian’ Kunal Kamra was supported by Congress in furthering his propaganda.

Here is what happened. Congress IT cell head Divya Spandana late last night shared a Narendra Modi meme, calling his supporters ‘stupid’ on her Twitter account. While IT cell head of any political party sharing a meme barely makes the cut as ‘news’, it came as a surprise for many when the news agency ANI carried a story on the meme. Especially when it was not even a particularly funny one.

Spandana, who appeared surprised at a story based on her meme, tagged ANI’s Live Services Editor, Ishaan Prakash, trying to take a dig on ANI. However, Ishaan soon shared a screenshot of a conversation between the two where she had shared the meme. Ishaan said since she shared the meme with him on WhatsApp, to a journalist, he thought she probably wanted the news agency to report on it.


It is a standard practice where communications personnel send out emails, messages to journalists working on the beats story leads.

However, what was surprising was the fact that just above the meme which Divya had shared, she had shared a YouTube link of ‘comedian’ Kunal Kamra’s propaganda masquerading as comedy. This led to a lot of speculations amongst the Twitterati.


Some even wondered if Congress is officially promoting Kamra.


Later, in Divya tried to make light of the situation by saying how while she forwards a lot of things to Ishaan, she knows why he picked this one up.


“Don’t worry your secret remains intact with me,” she joked.

Some even questioned whether it is due to Congress’ support that Kamra’s videos on YouTube gets so many views despite lack of humour.


Earlier, questions were also raised about pro-AAP propagandist Dhruv Rathee who also runs his propaganda through YouTube through paid promotion. When Dhruv was caught advertising his propaganda on Rafale, at first he had refuted the screenshots provided of his paid campaign saying that they were ‘Photoshopped’ and then claimed that perhaps it was someone else who might be paying for his videos.

Also: Dhruv Rathee speaks the same language as the terrorist who killed 40 CRPF jawans in Pulwama attack

Foot Overbridge near CST station in Mumbai collapses, 4 dead

OpIndia Staff
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Foot Overbridge near CST station in Mumbai collapses, 4 dead

A foot overbridge near Chatrapati Shivaji Chhatrapati Shivaji Terminus (CST) Railway station in Mumbai collapsed this evening, injuring several persons. According to reports, a foot overbridge that connects the platform number 1 of CST station and B T Lane near Times of India building collapsed around 7.30 PM this evening.


According to reports, 4 people have died while more than 30 people were injured in the incident, and they were admitted to St. George Hospital and GT Hospital. The bridge runs over a road and the debris of the bridge fell on people and vehicle below. According to videos and images of collapsed bridge shared on social media, it can be seen that the superstructure of the bridge is intact, but a large portion of the deck fell down on the traffic below. Several people were trapped in the debris of concrete slabs and steel sections of the fallen deck of the bridge.


The road has been closed for traffic and work on clearing the debris is going on. The bridge is under BMC, and Councillor Rais Shaikh accepted that the municipal body is responsible for this disaster.

A large section of the deck of the bridge fell on the people and vehicles below

This incident comes just one and a half year after the horrific stampede on Elphinstone Road railway station which had killed 23 people and injured many more. Last year another bridge, the pedestrian section of the Gokhale overbridge over railway line at Andheri had collapsed, injuring five people. After such incidents, the government had ordered safety audit of foot overbridges in Mumbai. Railway minister Piyush Goyal had announced a joint safety audit of 445 in Mumbai suburban railway network along with BMC.

The bridge near CST station was already under repair, according to reports. According to unconfirmed reports, the bridge had passed the safety audit done by BMC.

Congress responds to Smriti Irani’s press conference on Rahul Gandhi’s dubious land deals with a hitjob against her

OpIndia Staff
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Congress responds to Smriti Irani’s press conference on Rahul Gandhi’s dubious land deals with a hitjob against her

Union Minister Smriti Irani, a probable candidate from Amethi for the Bharatiya Janata Party against Rahul Gandhi, yesterday conducted a press conference where she targeted the Nehru-Gandhi Parivar for their dubious land deals citing the OpIndia report on the matter. Thus, it was only to be expected that she would be the target of hitjobs with General Elections approach.

Randeep Singh Surjewala, spokesperson of the Congress party, on Thursday, alleged that Smriti Irani was ‘exposed’ for “massive fraud”. He then proceeded to ask Narendra Modi whether he will sack her over the matter.


As it turns out, Smriti Irani had nothing to do with the alleged misappropriation of funds. As a Member of Parliament who has adopted Maghrol village in Anand district under the Sansad Adarsh Gram Yojana (SAGY), she can only recommend work to be carried out in her adopted village. The details and the plan to be implemented to complete the work is supposed to be checked by the Planning Officer. If it does not fall under the guidelines of MPLAD funds, then the amount should not be sanctioned by the Officer.

The scam first came to light in 2017 when the then District Collector Dhaval Patel had written a letter mentioning the irregularities. He had said that the matter had come to light during an audit by the CAG. Even in the letter, he had not mentioned that the MP was to be blamed for anything.

In the letter, as reported by DNA on the 20th of July, 2017, Patel wrote that Shri Sharda Majur Kamdar Mandli, a cooperative society of construction labourers, was allotted the work to construct public utilities in different villages of Anand district. The project was originally given to Gujarat Gram Vikas Agency Ltd, Ahmedabad, a rural development department undertaking and though it was declared defunct through government regulation, the then District Planning Officer (DPO) had awarded it work and made payments as well. After that, the DPO issued an order to transfer the work to Shri Sharda Majur Kamdar Mandli.

Furthermore, the Mandli claimed over Rs. 45 lakhs for the construction of a Panchayat Building which goes against the rules of MPLAD but the amount for it was sanctioned by the DPO. It was further said in the letter that numerous other work had been allotted to the Mandli and funds had also been disbursed but not a single brick had been laid in any of these places.

Later in 2018, in a statement to The Print, Dhaval Patel, the District Collector whose letter the Congress party is using to attack Smriti Irani, himself said that his letter had nothing to do with the BJP MP. He expressly stated that the inquiry and allegations were against “officials and contractors but not Irani”.

The Congress also alleges, “On instructions of PA to Union Minister, Smriti Irani, the works were awarded to Sharda Majdoor Kamdar Sahkari Mandli, Kheda.” This appears to be a blatant lie as Smriti Irani herself cannot award any work to any agency. That is the job of the DPO.

Moreover, Smriti Irani had herself written a letter to the District Collector, Dhaval Patel, on the 12th of July, 2017, inquiring about the progress made on the work recommended by her.

Under such circumstances, when the then District Collector has himself made it clear that the letter he had penned pointed towards irregularities committed by officials and administrators and had nothing to do with Smriti Irani, it appears a rather desperate on Congress’ part to deflect attention from its President’s links to arms dealer Sanjay Bhandari.

As it so happens, even Rahul Gandhi himself has seen his MPLAD funds being misused by corrupt officials. It was reported that two roads were constructed without even issuing tenders and for some roads which had already been constructed, new tenders were invited. Thus, it comes across as a malicious attempt by the Congress party to tarnish the reputation of Rahul Gandhi’s probable adversary in the Lok Sabha elections.

The Congress party appears to be rattled by OpIndia’s report which exposed the dubious land deals that link Rahul Gandhi to arms dealer Sanjay Bhandari. The report was cited by BJP leaders to claim that the links between the two are the reason behind Rahul Gandhi’s campaign against the Rafale deal as Bhandari was a middleman for the Rafale jet’s competitor, Eurofighter.

Read how Congress sheltered bankrupt companies, while NDA recovered Rs. 80,000 crores from just 66 resolution cases

Dhairya Roy
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Read how Congress sheltered bankrupt companies, while NDA recovered Rs. 80,000 crores from just 66 resolution cases

The following article evaluates the efficiency of the new Insolvency and Bankruptcy Code, 2016 introduced by the NDA Government in delivering justice and recovering amounts owed to creditors, whereas such companies would have earlier taken shelter behind the chaotic legislation of the Congress regime.

Introduction

The insolvency resolution process in India has involved the simultaneous operation of several statutory instruments in the past.

These include:

  1. The Sick Industrial Companies Act, 1985
  2. The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
  3. The Recovery of Debt Due to Banks and Financial Institutions Act, 1993
  4. The Companies Act, 2013.

Broadly, these statutes have provided for disparate processes of debt restructuring, asset seizure and realization in order to facilitate the satisfaction of outstanding debts. A plethora of cases dealing with insolvency and liquidation has led to immense confusion in the legal system. There was a grave necessity to overhaul the insolvency regime.

Multiple legal avenues and a hamstrung court system led to India witnessing a huge piling up of non-performing assets. The Bankruptcy Code is an effort to allow credit to flow more easily in India and instilling confidence in investors for speedy disposal of their claims. The Code consolidates existing laws relating to the insolvency of corporate entities and individuals into single legislation.

The Code has unified the law related to enforcement of statutory rights of creditors and streamlined the manner in which a debtor company can be revived to sustain its debt without extinguishing the rights of creditors.

Applicability

The Code provides creditors with a mechanism to initiate an insolvency resolution process in the event a debtor is unable to pay its debts. The Code makes a distinction between Operational Creditors and Financial Creditors.

A Financial Creditor is one whose relationship with the debtor is a pure financial contract, where an amount has been provided to the debtor against the consideration of time value of money. Recent reforms have sought to address the concerns of homebuyers by treating them as ‘financial creditors’ for the purposes of the Code.

By a recently promulgated ordinance, the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 (“the Ordinance”), the amount raised from allottees under a real estate project (a buyer of an under-construction residential or commercial property) is to be treated as a ‘financial debt’ as such amount has the commercial effect of a borrowing. The Ordinance does not clarify whether allottees are secured or unsecured financial creditors. Such classification will be subject to the agreement entered into between the homebuyers and the corporate debtor.

In the absence of allottees having a clear status, there may be uncertainty about their priority when receiving dues from the insolvency proceedings. A debtor company may also, take recourse to the Code if it wants to avail of the mechanism of revival or liquidation. In the event of inability to pay creditors, a company may choose to go for voluntary insolvency resolution process – a measure by which the company can itself approach the National Company Law Tribunal (“NCLT”) for the purpose of revival or liquidation.

Institutional Framework

The Code proposes the creation of several new institutions, all of which have specialized roles in the insolvency resolution process. The Code has created a regulatory and supervisory body, the Insolvency and Bankruptcy Board of India (“IBBI”), which has the overall responsibility to educate, effectively implement and operationalize the Bankruptcy Code.

The IBBI has the added responsibility to facilitate the functionality of the Code by studying practical implications and framing rules/regulations to overcome any difficulty or hurdle. The Code envisions the creation of a unit of professional insolvency practitioners, known as Resolution Professionals (“RP”). These Professionals are tasked with overseeing various aspects of the resolution of insolvency. The Code also sets up Insolvency Professional Agencies, which are professional bodies that will regulate the practice of insolvency professionals. Individual practitioners are required to be enrolled with insolvency professional agencies which are empowered to certify professionals, conduct examinations, and lay out a code of conduct.

Information Utilities

The Code envisages the establishment of information utilities. Information utilities are tasked with the collection, collation, maintenance, provision and supply of financial data to businesses, financial institutions, adjudicating authorities, insolvency professionals and other relevant stakeholders. These will thereby serve as a comprehensive repository of information on corporate debtors that are of a financial nature. It is optional for operational creditors to provide financial information to the information utility. This information, including records of liabilities, defaults, and overall debt, is to be sourced from creditors by the utility service. In what is a positive step forward towards transparency, all security interests created on assets are to be reported to the utilities by financial creditors.

The records with the utilities have evidentiary value in the initiation of insolvency resolution procedure and can assist various stakeholders in arriving at an ideal resolution at distressed companies. However, the Code is silent on the networking and interlinking of multiple information utilities. National e-Governance Services Ltd. (NeSL), a government entity, has become the first information utility after receiving the required approvals from the IBBI.

The framework of the Code

All proceedings under the Code in respect of corporate insolvency are to be adjudicated by the NCLT. NCLT has been designed as the special one window forum which can tackle all aspects of insolvency resolution. The NCLT is referred to as the Adjudicatory Authority in relation to the insolvency of corporate persons under the Code. No other court or tribunal can grant a stay against an action initiated before the NCLT. Appeals from the orders of the NCLT lie before the National Company Law Appellate Tribunal (“NCLAT”). All appeals from orders of the NCLAT lie to the Supreme Court of India. The jurisdiction of civil courts is explicitly ousted by the Code with regard to matters addressed by the Code. Additionally, it is now established that the Limitation Act, 1963 shall be applicable to proceedings under the Code. Thus, time-barred claims are outside the purview of insolvency.

Corporate Insolvency Resolution and Liquidation

The figure below shows the typical resolution timeline and process. The basic steps are as follows

  1. Default
  2. Appointment of insolvency (IP)
  3. Moratorium period (180/270 days)
  4. Credit committee formation

It can be seen from the image below that if 75% of the creditors approve then only the insolvency plan can be implemented otherwise the firm goes into liquidation.

Key Highlights Corporate insolvency resolution process

Application on default– Any financial or operational creditor(s) can apply for insolvency on default of debt or interest payment

Appointment of IP– IP to be appointed by the regulator and approved by the creditor committee. IP will take over the running of the Company. From the date of appointment of IP, the power of the Board of directors is to be suspended and vested in the IP. IP shall have immunity from criminal prosecution and any other liability for anything done in good faith

Moratorium period– Adjudication authority will declare moratorium period during which no action can be taken against the company or the assets of the company. A key focus will be on running the Company on going concern basis. A Resolution plan would have to be prepared and approved by the Committee of creditors

Credit committee– A credit committee of creditors will be constituted. A related party is to be excluded from the committee. Each creditor shall vote in accordance to voting share assigned if 75% of creditor approve the resolution plan the same needs to be implemented.

Liquidation Process

Initiation– Failure to approve resolution plan within specified days will cause initiation of Liquidation. The debtor can also opt for voluntary liquidation by a special resolution in a General Meeting.

Liquidator– The IP may act as the liquidator, and exercise all powers of the BoD. The liquidator shall form an estate of the assets, and consolidate, verify, admit and determine the value of creditors’ claims.

Order of priority for distribution of assets

  1. Insolvency related costs
  2. Secured creditors and workmen dues up to 24 months
  3. Other employee’s salaries/dues up to 12 months
  4. Financial debts (unsecured creditors)
  5. Government dues (up to 2 years)
  6. Any remaining debts and dues
  7. Equity

Key Aspects of Insolvency and Bankruptcy Code

  1. IBC proposes a paradigm shift from the existing ‘Debtor in possession’ to a ‘Creditor in control’ regime.
  2. IBC aims at consolidating all existing insolvency related laws as well as amending multiple legislations including the Companies Act.
  3. The code would have an overriding effect on all other laws relating to Insolvency & Bankruptcy.
  4. The code aims to resolve insolvencies in a strict time-bound manner – the evaluation and viability determination must be completed within 180 days.
  5. Moratorium period of 180 days (extendable up to 270 days) for the Company. Insolvency professional to take over the management of the Company.
  6. Clearly defined ‘order of priority’ or the waterfall mechanism.
  7. The waterfall to render government dues Junior to most others is significant.
  8. Antecedent transactions can be investigated and in case of any illegal diversion of assets, a personal contribution can be ordered by the court.
  9. Introduce a qualified insolvency professional as intermediaries to oversee the Process
  10. Establishment of Insolvency and Bankruptcy board as an independent body for the administration and governance of Insolvency & bankruptcy Law; and Information Utilities as a depository of financial information.

Why Code is imperative today

We illustrate below why the code was needed. What does the code intend to change for borrowers and lenders? And how the code has helped fast-track the resolution process?

Why was the Code needed?

  1. Reduce the time taken to resolve insolvency
  2. Develop investor confidence
    3. Eliminate confusion caused by a complex judicial system
  3. Address the NPA situation decisively
  4. Develop the credit and bond market

What does the Code intend to change?

  1. Create a single Insolvency and bankruptcy framework
  2. Set up a clear and unambiguous process to be followed by all stakeholders in a time-bound marine.
  3. Provide a commercial solution to a commercial issue
  4. Allow genuine business failures a second chance
  5. The clear and unambiguous process to be followed by all stakeholders in a time-bound manner
  6. Provide confidence to lenders of their rights and their enforcement

What does It change tor the lenders?

  1. Right to control the borrower upon default and maximize recovery
  2. Option to initiate the process even if the default is in respect of the debt of another lender
  3. Need for more robust monitoring systems to enable the judicious exercise of powers
  4. Lack of lender consensus on resolution plan can push the borrower into liquidation
  5. Clear priority of distribution upon liquidation; government dues subservient to those of secured creditors and unsecured financial creditors.

What does it change for the borrowers?

  1. Aar creditor can file an insolvency petition on default of INR1 lakh or more
  2. Insolvency professional (IP) to take over the management and operations of the borrower during the Corporate Insolvency Resolution Process (CIRP)
  3. Borrowers to focus on liquidity –ensure tight cash flow forecasting and monitoring to stay current on payments
  4. Need to be proactive in identifying issues, communicating with lenders and developing/ implementing a turnaround plan

How can the Code help fast-traffic resolution?

  1. Lender inertia during the CIRP would mean liquidation –invariably an economically inferior outcome as compared to the resolution
  2. Clarity on the insolvency framework will attract investors to invest in stressed/distressed situations
  3. Moratorium clause to ensure smooth insolvency resolution process
  4. An “open floor” for submission of resolution plans should facilitate the approval of the best plant
  5. The framework defines the role of the judiciary and leaves limited scope for a legal delay/deferral of the problem.

Key legal differences between the Current regime and Code

Below listed are key legal differences between the IBC and the current regime. The new Code clarifies the definition of what constitutes insolvency in a better manner, eliminates subclasses of creditors while empowering Resolution Professionals.

Insolvency and Bankruptcy code: – A Global View

Below image gives a comparison of 20 key provisions Insolvency and bankruptcy code amongst various nations and how India stacks ups against these nations. Key provisions of the Indian code are compared against countries such as the UK, Brazil, Canada, Australia and Singapore. Parameters of comparison include the process of triggering bankruptcy, the amount of default, who retains charge during the process, the extent of the moratorium period, and many other factors.

Insolvency and Bankruptcy code: – NDA Vs UPA

Congress left behind the legacy of an archaic system of resolving commercial insolvency. The Companies Act had a provision of winding up a company if it was unable to pay its debt. Additionally, the Congress Government had enacted the SICA in the decade of 1980s for rehabilitation of sick companies. This applied to companies whose net worth has become negative.

The law proved to be an utter failure. Law carried out rehabilitation, several sick companies got a protective iron curtain against creditors. The Debt Recovery Tribunal was created to enable banks to recover all dues diligently. But these have not proved to be highly efficient mechanism for recovering the debt. For non-corporate insolvencies the Provincial Insolvency Act was applicable. This rusted piece of legislation was ineffective and had faded away because of disuse.

The NDA Government headed by Atal Bihari Vajpayee had enacted the SARFAESI Law which proved to be much better than the earlier mechanism. In the year 2000, the NPAs had sky-rocketed into double digits. Both the SARFESI Law and the prudent interest rate management by the RBI helped in bringing the NPAs down.

Subsequently, between 2008 and 2014, Banks lent indiscriminately. This lead to a very high percentage of NPAs which was highlighted by the Asset Quality Reviews of the RBI.  Prompt action by the NDA Government was taken. An Expert Committee was appointed, which submitted its Report in 2015 recommending the IBC.

Immediately, a Bill was introduced in Lok Sabha and referred to a Joint Committee of Parliament. The Parliamentary Committee displayed its wisdom and submitted a report recommending some changes in the Legislation. The IBC was approved by both Houses of Parliament in May 2016. This Economic legislative change has been made by the Parliament.

The NCLT was immediately constituted, the Insolvency Bankruptcy Board of India was established and the regulations were framed. By the end of 2016 corporate insolvency cases were being received by the NCLT.

The early harvest through the IBC process has been extremely satisfactory. It has changed the debtor-creditor relationship. The creditor no longer chases the debtor. In fact, it is otherwise. Upon the constitution of the NCLT and the implementation of IBC its functionality had revealed the need for improvements in the law. Two legislative interventions since then have taken place.

The NCLT has become a trusted forum of high credibility. Those who drive the companies to insolvency, exit from management. The selection of new management has been an honest and transparent process. There has been no political or Governmental interference in the cases.

The recovery of monies parked in insolvent companies has taken place through three methods:

  • Firstly, after the introduction of Section 29(A) companies are paying up in anticipation of not crossing a red line and is referred to NCLT. As a result, the banks have started receiving monies from the potential debtors who pay in anticipation of the default. The defaulters are aware that once they get into IBC they will surely be out of management because of Section 29(A).
  • Secondly, once a petition of the creditor is filed before the NCLT many debtors have been paying at the pre-admission stage so that the declaration of insolvency does not take place.
  • Thirdly, many major insolvency cases have already been resolved and many are on the way of resolving. Those which cannot be resolved move towards liquidation and the banks are receiving the liquidation value.

So far,

  • 1322 cases have been admitted by NCLT.
  • 4452 cases have been disposed at the pre-admission stage and
  • 66 have been resolved after adjudication.
  • 260 cases have been ordered for liquidation.

In 66 resolution cases, the realization by creditors was around Rs. 80,000 crores.

As per NCLT database, in 4452 cases disposed at the pre-admission stage, the amount apparently settled was around Rs 2.02 lakh Crores. Some of the big 12 cases such as Bhushan Power and Steel Ltd. and Essar Steel India Ltd. are in advanced stages of resolution and are likely to be resolved in this financial year in which realization is expected to be around Rs 70,000 Crores.

By March 2019, recoveries worth Rs. 1.80 lakh crore is expected, with many resolutions at the final stages. Recovery to the tune of Rs. 52,000 Cr and Rs. 18,000 Cr are expected from Essar Steel Ltd and Bhushan Power & Steel Ltd respectively. Other stressed companies include Monnet Ispat, Amtek Auto and Ruchi Soya.

Increase in the conversion of NPAs into standard accounts and decline in new accounts falling in NPA category show a definite improvement in the lending and borrowing behaviour.

Essar Steel Insolvency case

Following is the timeline Essar Insolvency case

May 5, 2017: The central bank (RBI) is vested with more powers to fix bad loans issue in the banking system.

June 12, 2017: The RBI identifies 12 accounts for immediate resolution under the IBC.

June 27, 2017: Insolvency proceedings begin against Essar Steel in National Company Law Tribunal (NCLT).

July 4, 2017: Essar Steel challenges the RBI’s decision in Gujarat High Court.

July 17, 2017: After hearing both sides, Gujarat HC dismisses Essar Steel’s petition on the RBI’s insistence that the company was far from the debt-restructuring process.

August 2, 2017: NCLT admits Essar Steel for insolvency proceedings under the IBC. Satish Kumar Gupta is appointed Resolution Professional (RP) of the company.

October 2, 2017: Expression of Interest (EOIs) is invited by RP for Essar Steel.

November 2017: Essar Steel’s parent company Essar Group is learnt to be one of the bidders.

November 23, 2017: Section 29A is introduced via Ordinance to bar wilful defaulter, defaulter promoters and related parties from bidding.

February 12, 2018: First round of bidding takes place: Numetal and ArcelorMittal submit bids.

March 2018: RP holds both bids ineligible due Numetal’s connection with the Ruias and ArcelorMittal’s stake in an NPA account. Rewant Ruia, son of Essar Group’s Ravi Ruia, was a beneficiary in Numetal. ArcelorMittal held stakes in loan defaulter Uttam Galva, while Lakshmi Mittal held stakes in defaulter KSS Petron.

March 20, 2018: Numetal moves NCLT challenging the rejection of the bid.

March 26, 2018: ArcelorMittal also challenges disqualification in NCLT.

April 2, 2018: RP invites fresh bids.

April 19, 2018: NCLT Ahmedabad asks RP to re-examine first round of bids, saying RP rejected their offer without putting it in front of the Committee of Creditors (CoC).

September 7, 2018: National Company Law Appellate Tribunal (NCLAT) holds Numetal’s bid valid after it severs ties with Ruias. ArcelorMittal is asked to clear dues of Rs 7,000 crore of Uttam Galva and KSS Petron in three days.

September 10, 2018: ArcelorMittal revises offer to Rs 42,000 crore, including Rs 7,000 crore of past dues. Essar Steel had offered Rs 37,000 crore.

September 12, 2018: Numetal challenges NCLAT decision of allowing ArcelorMittal a chance to clear dues. ArcelorMittal agrees to pay Rs 7,000 crore only if it emerges successful bidder.

October 4, 2018: The Supreme Court gives one more chance, asks Numetal and ArcelorMittal to submit revised bids after paying outstanding dues in two weeks. If the account is not resolved in eight weeks, it will go into insolvency.

October 19, 2018: The Essar Steel Committee of Creditors picks ArcelorMittal as the highest bidder under the IBC.

25 November 2018: Standard Chartered Challenges ArcelorMittal’s bid citing Non-Compliance with IBC.

December 2018: Ruias, promoters of Essar steel make 54000 Cr counter bid to pay off loans.

December 10, 2018: Banks and ArcelorMittal oppose Essar steel’s bid.

29 January 2019: NCLT rejects Essar Steel’s promoter bid for settlement

February 2019:  NCLAT directs NCLT Ahmedabad to take a call on ArcelorMittal’s Essar steel bid on March 8

March 8, 2019: ArcelorMittal bags Essar steel as NCLT Ahmedabad clears 42000 Cr takeover bid.

Insolvency and Bankruptcy code: – Way Ahead

It is evident that the Indian government is leaving no stone unturned in its aim to improve the Ease of Doing Business in India. The legislature, RBI, SEBI, and the judiciary have presented a unified front, unprecedented in India so far. Any apparent loopholes are being plugged at the earliest and the law is evolving rapidly.

It comes as no surprise, then, that as in 2019, India had already secured its position in the top 30 developing countries for retail investment worldwide and that insolvency resolution in India has become a more streamlined, consolidated and expeditious affair.

The implementation of Insolvency and Bankruptcy Code, 2016 has faced many challenges. These challenges have been tacked with effective amendments. The IBC has been doing a commendable job, and due credit needs to be given to all the officials who have worked diligently to introduce the Code. Insolvency resolution in India has become a more streamlined, consolidated and expeditious affair. It comes as no surprise, then, that India has already secured its position in the top 30 developing countries for retail investment worldwide. What needs to be seen is whether these measures can successfully be used to reduce the burden of stressed assets on the banking system and whether India can come on par with other developed nations in respect of insolvency resolution.

‘PM Manmohan was not as tough on Pakistan in 2008 as Modi is now’: Senior Congress leader Shiela Dixit admits

OpIndia Staff
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‘PM Manmohan was not as tough on Pakistan in 2008 as Modi is now’: Senior Congress leader Shiela Dixit admits

Things have not been falling in place for the Congress party lately. From in-house defections to infighting, Congress has been battling too many odds. Now, Congress veteran leader Sheila Dikshit has said that Former PM Manmohan Singh was not as tough in dealing with terrorism as PM Narendra Modi is.

In an interview to Vir Sanghvi for CNN-News 18, when the Delhi Congress chief was questioned about the criticism from some quarters that the UPA government did nothing in response to the 26/11 terror attack in Mumbai in 2008, the Delhi Pradesh Congress chief, as well as three-time CM of Delhi, accepted that “Manmohan Singh was not as strong and determined as Modi perhaps”.

In the biggest admission on UPA’s anti-terror record, Dikshit went on to say that “Yes, I agree Manmohan was not as tough on Pakistan in 2008 as Modi is now”.

However, as a possible afterthought, Dikshit added that there is a feeling that Modi has taken actions against Pakistan only with an eye on politics.

Meanwhile, when Sheila Dikshit was later confronted about her controversial comment, she claimed her comments were taken out of context but didn’t deny that she made comments.  She said to ANI, “if something is taken out of context, I can’t say”.


The Manmohan Singh government had decided against a military response to the terror attacks on Mumbai at the end of November 2008. Over 150 people were killed in indiscriminate firing by terrorists at Taj hotel and other places in Mumbai on November 26, 2008.

However, under PM Modi’s tenure, the Army conducted surgical strikes across the Line of Control in Pakistan Occupied Kashmir in September 2016 after a terror attack in Uri. Similarly, following the Pulwama attack, where 44 CRPF personnel were killed by a Jaish-e-Mohammad suicide bomber, the Indian Air Force conducted airstrikes inside Pakistan and targeted terror camps in Balakot, giving Pakistan a befitting reply for nurturing terrorism on its soil.

Perhaps if India had previously too resorted to such fearless retaliations, Pakistan would not have had the audacity to sabotage India as it has been doing on multiple occasions over the past years.

Pakistani journalist shows his asininity by likening Dalai Lama to Masood Azhar, gets schooled by Twitterati

OpIndia Staff
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Pakistani journalist shows his asininity by likening Dalai Lama to Masood Azhar, gets schooled by Twitterati

A senior Pakistani Journalist Hamid Mir, took to Twitter, soon after China blocked a UNSC move to list the JeM chief as a terrorist, to liken Jaish-e-Mohammad chief Masood Azhar to Nobel laureate the Dalai Lama.


Minutes after Hamid Mir, in his tweet mentioned that “It’s very easy to understand why China blocked resolution against Masood Azhar in UNSC? India sheltering an enemy of China since decades and his name is Dalai Lama”, Twitterati dressed him down for his asininity.

One Twitter user named Amrita Bhinder in a snappy comeback schooled Mir for his audacious comparison.


There were several others like Bhinder who took offence in Hamid Mir’s comment.


It was after 1959 when Dalai Lama fled Tibet after it came under the direct control of China and took refuge in Dharamsala. He has been here since then and has become a spiritual leader, followed by many across the world. He was awarded the Nobel Peace Prize.

Raged by this obnoxious comparison one of the users backlashed by saying, “Comparing a nonviolent peace award winner #DalaiLama with a terrorist #MasoodAzhar !!! Now we know why Pakistan is a Begger Nation. Go baba beg for some money from China & Saudi.”

Notably, Hamid Mir was also amongst those who had lied brazenly about the Balakot airstrike. By claiming that the only casualty in Balakot airstrike was that of a crow, Mir had subjected himself to a plethora of memes and mockery.

India’s attempt to get Pakistan-based Jaish-e-Mohammed’s chief Masood Azhar declared a “global terrorist” by the UN Security Council was once again blocked by China as it placed a “technical” hold on the resolution on Wednesday. This is the fourth time that China has blocked the resolution against Azhar since 2009.

The proposal to designate Azhar under the 1267 Al Qaeda Sanctions Committee of the UN Security Council was moved by France, the UK and the US on February 27, days after the Pulwama terror attack carried out by a suicide bomber belonging to the Jaish-e-Mohammed (JeM) that led to a flare-up in tensions between India and Pakistan.

Charge sheet alleging dowry and sexual harassment filed against cricketer Mohammed Shami

OpIndia Staff
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Charge sheet alleging dowry and sexual harassment filed against cricketer Mohammed Shami

Trouble mounts for Indian cricket team’s fast bowler Mohammed Shami as the Kolkata police submitted a charge sheet against him at the Alipore police court. Based on the complaint lodged by his estranged wife Hasin Jahan, Shami has been charged under IPC 498A(dowry harassment) and 354A(sexual harassment).

It is notable to mention that the next hearing of the case has been fixed on June 22.

Shami is in a long-standing dispute with his wife after the latter came out with photos of his alleged affair on social media. Last year she had accused Shami of domestic violence and sexual abuse. However, Shami refuted the allegations, claiming it to be a conspiracy to ruin his cricketing career.

Hasin Jahan had also accused Shami of indulging in match-fixing, following which BCCI had withheld his name from the central contract list. However, after the internal investigation on match-fixing accusations were found to be untrue, Shami was reinstated by the BCCI in the Grade A contract list.

With World Cup just a couple of months away, charge-sheet against Shami could be a huge setback for the cricketer who battled overwhelming odds to make it back into the Indian cricket team.

West Bengal: BJP worker brutally beaten up by TMC goons in Islampur, condition critical

OpIndia Staff
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West Bengal: BJP worker brutally beaten up by TMC goons in Islampur, condition critical

Another case of political intolerance has reportedly come to light in West Bengal where a BJP worker is alleged to have been brutally attacked by Trinamool Congress workers.


According to a tweet posted by BJP Bengal from its official Twitter handle, a BJP worker Apurba Chakraborty was brutally beaten up by TMC goons in Islampur, West Bengal. Chakraborty’s condition is critical and he is currently admitted in Uttar Banga Medical  College. He is a BJP leader from North Dinajpur district in West Bengal.

Apurba Chakraborty had gone to a wedding ceremony of his relative in Gulshan area of Islampur ps last night. When he was going back from the wedding at around 10 PM, suspected TMC goons assaulted him on the road. After some time local residents of the area gathered there and the miscreants ran away. He was admitted to the hospital in critical condition.

Violence against political rivals is on a rise under the Mamata government in West Bengal. Recently a TMC MLA  Sovan Chatterjee and his friend Baishakhi Chatterjee was confined to a bungalow as there were speculations of him and his friend joining the BJP. His friend Baishakhi Chatterjee was also given rape threats.

Last year in the month of May, a 6-month pregnant woman who was relative of a BJP candidate in Panchayat Elections in West Bengal, was allegedly raped by TMC activists in Nadia district.

Last year TMC had won 20,000 seats uncontested in West Bengal Panchayat elections amidst the allegations that the party which fielded its candidates on all rural seats, had prevented filing of nominations by resorting to violence. The BJP had moved the Supreme Court to interfere in the matter of its party workers not being allowed to file nominations for the Panchayat elections.

Rahul Gandhi raking ‘Rafale scam’ because Sanjay Bhandari couldn’t tilt the deal: Ravi Shankar Prasad on OpIndia expose

OpIndia Staff
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Rahul Gandhi raking ‘Rafale scam’ because Sanjay Bhandari couldn’t tilt the deal: Ravi Shankar Prasad on OpIndia expose

Union Minister Ravi Shankar Prasad conducted a press conference on the report published by OpIndia.com exposing the dubious land deals involving Congress President Rahul Gandhi that link him personally to shady arms dealer Sanjay Bhandari. The Union Minister also remarked that OpIndia deserved to be complimented for its efforts.

[youtube https://www.youtube.com/watch?v=NGEXMXA8sAI]

Citing the OpIndia report, Prasad said, “I have seen the Congress party’s reply, it was not expected from it. Buying land is not dubious in itself but who was the land bought from? That is important. And why were the lands brought from the same person? That is also very important.” He also said that Rahul Gandhi was involved in the dubious land deals of Robert Vadra.

The Law Minister cited other land deals of the Nehru-Gandhi Parivar as well to attack the Congress party. He said, “If there’s a particular land rate that the Congress party has claimed, then how is it and why is it that the land purchased by Priyanka ji on the 24th of April, 2006 for Rs. 15 lakhs, she sold it after 3 years 10 months at a high price of Rs. 84.14 lakhs?”

Prasad also asserted that C.C. Thampi and Sanjay Bhandari are the other prominent figures in the story. He said, “Sanjay Bhandari was the middleman of Airbus. And Airbus manufactures Eurofighter. The Eurofighter was in competition with the Rafale jet. The allegations that have been levelled against the Rafale deal by Rahul Gandhi are not based on evidence, all these allegations are being levelled because Rahul Gandhi has links with Sanjay Bhandari.” He added, “Eurofighter was not successful in getting the tender, that’s why a campaign is being run against Rafale. I say with all degrees of earnestness that this whole campaign against Rafale is not a fair, appropriate or a reasonable campaign but a malafide campaign.”

The Union Minister squarely blamed Rahul Gandhi’s links with Sanjay Bhandari for his campaign against Rafale. “A campaign based on fiction and lies, why? Because Sanjay Bhandari who had the blessings of the family and who was a conduit for Eurofighter could not tilt the scale in favour of Eurofighter,” he said.

He stated further, “Sanjay Bhandari also attempted to become an offsets partner in the Rafale deal but wasn’t successful.” He added, “Everywhere, two factors are common. Seller: H.L. Pahwa, Purchaser: Robert Vadra, Rahul Gandhi, Priyanka Gandhi. Robert Vadra has more purchases.”

Yesterday, Union Finance Minister Arun Jaitley had cited OpIndia’s report in his blog to slam the Nehru-Gandhi Parivar. Smriti Irani, the probable BJP candidate for the BJP against Rahul Gandhi in Amethi, had conducted a press conference on the report as well where she had claimed that, for the Parivar, corruption comes in a family package.

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