Insolvency and Bankruptcy Code, 2016: Difference between revisions

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 {{Insolvency|By Country=India}}
-The '''Insolvency and Bankruptcy Code, 2016''' ('''IBC''') is the bankruptcy law of India which seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy. The Insolvency and Bankruptcy Code, 2015 was introduced in [[Lok Sabha]] in December 2015. It was passed by [[Lok Sabha]] on 5 May 2016 and by [[Rajya Sabha]] on 11 May 2016.<ref>{{citation|title=Lok Sabha passes bill to fast track debt recovery|date=2 August 2016|url=http://m.economictimes.com/news/economy/lok-sabha-passes-bill-to-fast-track-debt-recovery/articleshow/53495364.cms|work=[[The Economic Times]]}}</ref> The Code received the assent of the President of India on 28 May 2016.<ref>{{cite web|url=http://egazette.nic.in/WriteReadData/2016/169882.pdf|title=Insolvency and Bankruptcy Code|publisher=Gazette of India|access-date=31 May 2016}}</ref> Certain provisions of the Act have come into force from 5 August and 19 August 2016.<ref>{{cite web|title=Notification|url=http://egazette.nic.in/WriteReadData/2016/171374.pdf|website=E-Gazette|publisher=Gazette of India|access-date=22 August 2016}}</ref> The bankruptcy code is a one stop solution for resolving insolvencies which previously was a long process that did not offer an economically viable arrangement. The code aims to protect the interests of small investors and make the process of doing business less cumbersome.<ref>{{Cite news|url=http://www.cppr.in/article/the-bankruptcy-code-for-india-a-step-to-ease-doing-business/|title=The Bankruptcy Code for India – A step to ease ‘Doing Business’?|date=2015-12-16|work=Centre for Public Policy Research (CPPR)|access-date=2017-12-07|language=en-US}}</ref>
+The '''Insolvency and Bankruptcy Code, 2016''' ('''IBC''') is the bankruptcy law of India which seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy. The Insolvency and Bankruptcy Code, 2015 was introduced in [[Lok Sabha]] in December 2015. It was passed by [[Lok Sabha]] on 5 May 2016 and by [[Rajya Sabha]] on 11 May 2016.<ref>{{citation|title=Lok Sabha passes bill to fast track debt recovery|date=2 August 2016|url=http://m.economictimes.com/news/economy/lok-sabha-passes-bill-to-fast-track-debt-recovery/articleshow/53495364.cms|work=[[The Economic Times]]}}</ref> The Code received the assent of the President of India on 28 May 2016.<ref>{{cite web|url=http://egazette.nic.in/WriteReadData/2016/169882.pdf|title=Insolvency and Bankruptcy Code|publisher=Gazette of India|access-date=31 May 2016}}</ref> Certain provisions of the Act have come into force from 5 August and 19 August 2016.<ref>{{cite web|title=Notification|url=http://egazette.nic.in/WriteReadData/2016/171374.pdf|website=E-Gazette|publisher=Gazette of India|access-date=22 August 2016}}</ref> The bankruptcy code is a one stop solution for resolving insolvencies which previously was a long process that did not offer an economically viable arrangement. The code aims to protect the interests of small investors and make the process of doing business less cumbersome.<ref>{{Cite news|url=http://www.cppr.in/article/the-bankruptcy-code-for-india-a-step-to-ease-doing-business/|title=The Bankruptcy Code for India – A step to ease 'Doing Business'?|date=2015-12-16|work=Centre for Public Policy Research (CPPR)|access-date=2017-12-07|language=en-US}}</ref>
 The IBC has 255 sections and 11 Schedules.
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 |{{INRConvert|36400|c|lk=|year=2018}}
 |Tata Steel, through its wholly owned subsidiary Bamnipal Steel Ltd (BNPL), has acquired 72.65 per cent controlling stake in Bhushan Steel Ltd (BSL) for around Rs 36,400 crore. The company was selected as the highest bidder in March 2018 to buy a controlling stake in Bhushan Steel, as part of bankruptcy proceedings.||<ref>{{citation |title=L&T moves NCLT to be declared as secured creditor in Bhushan Steel insolvency |url=http://www.livemint.com/Companies/ersQoSgCetf0Atx0hT1rPK/LT-moves-NCLT-to-be-declared-as-secured-creditor-in-Bhushan.html |work=[[Live Mint]] |date=8 March 2018 }}</ref><ref name="et0318" /><ref>{{Cite web|url=https://www.jagranjosh.com/current-affairs/tata-steel-subsidiary-acquires-72-stake-in-bhushan-steel-1526718638-1|title=Tata Steel subsidiary acquires 72% stake in Bhushan Steel|date=2018-05-19|website=Jagranjosh.com|access-date=2019-12-01}}</ref><ref>{{Cite web|url=https://www.ndtv.com/business/bhushan-steel-acquisition-by-tata-steel-fm-piyush-goyal-calls-it-historic-breakthrough-1854197|title=Bhushan Steel Acquisition By Tata Steel: Piyush Goyal Calls It Historic Breakthrough|website=NDTV.com|access-date=2019-12-01}}</ref>
-|-
-| [[Electrosteel Steels|Electrosteel]] || {{INRConvert|130|b}} || July 2017
-|
-|
-|Acquired by Vedanta India Ltd.||<ref name=et0318/>
 |-
 | [[Amtek Auto]] || {{INRConvert|12700|c|lk=|year=2017}}|| July 2017
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 |Nov 29, 2019
 |Jan 2021
-|33% of dues over 5 years
+|{{INRConvert|38000|c|lk=|year=2021}}
-|First financial company to be referred to NCLT under IBC by RBI. CoC has approved the bid by Piramal for Rs. 38,000 Cr.
+|First financial company to be referred to NCLT under IBC by RBI. It was acquired by Piramal Group, and, according to the resolution plan, Piramal Capital and Housing Finance Ltd. (PCHFL) will merge with DHFL.
-|<ref>{{Cite web|url=https://www.nasdaq.com/articles/india-cenbank-moves-to-begin-bankruptcy-proceedings-against-dhfl-2019-11-29|title=India cenbank moves to begin bankruptcy proceedings against DHFL|last=Reuters|first=Contributor Chris Thomas|website=www.nasdaq.com|language=en|access-date=2019-12-01}}</ref><ref>{{Cite news|last=Chatterjee|first=Dev|date=2021-01-17|title=Banks to get 33% of dues spread over five years from DHFL resolution|work=Business Standard India|url=https://www.business-standard.com/article/companies/banks-to-get-33-of-dues-spread-over-five-years-from-dhfl-resolution-121011700582_1.html|access-date=2021-01-17}}</ref>
+|<ref>{{Cite web|url=https://www.nasdaq.com/articles/india-cenbank-moves-to-begin-bankruptcy-proceedings-against-dhfl-2019-11-29|title=India cenbank moves to begin bankruptcy proceedings against DHFL|last=Reuters|first=Contributor Chris Thomas|website=www.nasdaq.com|language=en|access-date=2019-12-01}}</ref><ref>{{Cite news|last=Chatterjee|first=Dev|date=2021-01-17|title=Banks to get 33% of dues spread over five years from DHFL resolution|work=Business Standard India|url=https://www.business-standard.com/article/companies/banks-to-get-33-of-dues-spread-over-five-years-from-dhfl-resolution-121011700582_1.html|access-date=2021-01-17}}</ref><ref>{{Cite news|last=Panda|first=Subrata|date=2021-09-29|title=Piramal Group acquires DHFL for total consideration of Rs 34,250 cr|work=Business Standard India|url=https://www.business-standard.com/article/companies/piramal-group-acquires-dhfl-for-total-consideration-of-rs-34-250-cr-121092900395_1.html|access-date=2021-09-29}}</ref>
+|-
+|[[Reliance Capital]]
+|
+|{{Date|Dec 6, 2021}}
+|
+|
+|RBI superseded the board on Nov 29, 2021 with the intention of starting insolvency proceedings. The central bank appointed Nageswara Rao Y., a former executive director of Bank of Maharashtra, as the company’s administrator.
+|<ref>{{Cite news|last=Kant|first=Krishna|date=2021-11-30|title=Why RBI move to supersede Reliance Capital board is par for the course|work=Business Standard India|url=https://www.business-standard.com/article/companies/why-rbi-move-to-supersede-reliance-capital-board-is-par-for-the-course-121112901392_1.html|access-date=2021-11-30}}</ref><ref>{{Cite web|last=Gopakumar|first=Gopika|date=2021-11-30|title=RBI appoints 3-member advisory panel to assist Reliance Capital administrator|url=https://www.livemint.com/news/india/rbi-appoints-3-member-advisory-panel-to-assist-reliance-capital-administrator-11638275554450.html|access-date=2021-11-30|website=mint|language=en}}</ref>
 |}