Another defaulters´ list sent to NCLT

Another defaulters´ list sent to NCLT

Banks on Friday from the India´s second on large size corporate the National Company Tribunal (NCLT) for resolution

This was after refused toaproposal from the banks to the rules in this regard for those companies which are close to a resolution.Videocon Industries, Jaiprakash Associates and Jayaswal Neco Industries now among those face NCLT proceedings of their loans

These three were recommended by banks for resolution outside the NCLT process but RBI, as mentioned, negatived this.Under the Insolvency and Bankruptcy Code,adefaulting company´s board of directors are suspended and NCLT appoints an insolvency resolution professional to manage its day to day affairs

The company will then be sold to the highest bidder who takes over the largest portion of the debt.Banks are also expected to write off a substantial portion, up to 70 to 80 per cent, on the dues In its annual report for 2017, Videocon said it owed Rs 20,905 crore to bank

Jaypee´s debt was Rs 25,586 crore and that of Nagpu rbased Jayaswal Neko Rs 4,188 crore.A part from Videocon Industries, its telecom arm, Videocon Telecommunications, with debt of Rs 3,000 crore, will also be sent to the NCLT.Banks will have to make 50 per cent provisioning for these loans on their balance sheet

The Jaypee group´s realty arm, Jaiprakash Infratech, is already before the NCLT; its equity has received interest from the JSW group, Adani and Vedanta during the resolution process

The RBI dictat to send all companies on its list to NCLT comes as Reliance Communications announced sale of its wireless assets to Reliance Jio, effective the March 2018 quarter, for Rs 20,000 to Rs 24,000 crore.

Lenders said RCom will be considered a nonperforming asset in the December quarter and they will make provision for its Rs 44,700crore loan, by the RBI rules.On June 2 this year, RCom signeda ´standstill agreement´ with its lender, under which it would not be paying dues till December 2018. The RBI had come out with its first circular on sending companies to NCLT on June 13.

IOB sells Bhushan account to SSG Capital

State owned Indian Overseas Bank(IOB) has sold its Bhushan Steel account with less than 40 percent write off(haircutisthe form all term); SSG Capital has acquired the debt.Sources in IOB say the process should be complete by this weekend. SSG Capital was the largest bidder, with Rs 376 crore.Other bidders, mainly asset reconstruction companies(ARCs), included Edelweiss, JM Financial and Pegasus.

Without disclosing the number, an IOB source said over 60 percent was recovered and this would help to strengthen the balance sheet.The bank´s exposure to Bhushan was Rs 650700 crore.In the recent past, the bank has been in the process of reducing its high levels of nonperforming assets.

In September, it sold bad debt exposure of Rs 1,600 crore in Essar Steel to Edelweiss AR Cata 50 percent discount to the book value. The bank´s gross NPAs at end September were Rs 34,709 crore, about 22.7percent of the total, against Rs 35,453 crore or 23.6percent at end June

Monnet Ispat´s independent director resignsAn independent director of debt laden Monnet Ispat and Energy Ltd, which is undergoing NCLT proceedings, has resigned with immediate effect.Monnet Ispat is one of the 12 companies which the Reserve Bank of India had referred to the National Company Law Tribunal (NCLT) for insolvency proceedings in June this year

The Business Standard, New Delhi, 30th December 2017

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An ITR return needs to be verified within 120 days of filing of tax return. Now that you have filed your income tax return, remember to verify it because your return filing process is not complete unless you do so. The CBDT has reduced the time limit of ITR verification to 30 days (from 120 days) from the date of return submission. The new rule is applicable for the returns filed online on or after 1st August 2022. E-verification is the most convenient and instant method for verifying your ITR. However, if you prefer not to e-verify, you have the option to verify it by sending a physical copy of the ITR-V. Taxpayers who filed returns by July 31, 2023 but forget to verify their tax returns, will get the following email from the tax department, as per ClearTax. If your ITR is not verified within 30 days of e-filing, it will be considered invalid, and may be liable to pay a Late Fee. Aadhaar OTP | EVC through bank account | EVC through Demat account | Sending duly signed ITR-V through s

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