Nation
Non-bailable warrant against Pankaj Bhujbal
Mumbai : A Special Court on Wednesday issued a non-bailable arrest warrant against NCP legislator Pankaj Bhujbal and some others in connection with a money laundering case lodged by the Enforcement Directorate (ED).
 
Prevention of Money Laundering Act Special Court Judge P.R. Bhavke ordered the warrant after taking cognizance of the chargesheet filed by the ED in the case pertaining to the alleged corruption in the construction of the Maharashtra Sadan in New delhi and another case.
 
The judge also extended the judicial custody of former deputy chief minister Chhagan Bhujbal and his nephew former MP and Sameer Bhujbal till May 11.
 
On March 30, the ED had filed an 11,500-plus pages chargesheet naming the Bhujbal trio, their other associates and corporate entities like D.B. Realty, Balwa Group, Neelkamal Realtors and Kakade Infrastructure in the scam worth around Rs.870 crore.
 
The ED has filed two first information reports (FIRs) against the accused under PMLA based on complaints registered by Maharashtra Anti-Corruption Bureau for probing alleged irregularities in the construction of Maharashtra Sadan and a land grab at Kalina in Mumbai.
 
The actions followed a Special Investigation Team directed by the Bombay High Court in December 2014 to probe these cases against the Bhujbals and others.
 
Earlier, the ED had attached properties of the Bhujbals worth Rs.131.86 crore and carried out searches at nine offices and properties.
 
While Sameer Bhujbal was arrested on February 3, his uncle Chhagan Bhujbal was nabbed on March 14 by the ED and remains in custody. Now the warrant has been issued against Pankaj Bhujbal.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Publicise defaulters whose loans written off: MPs' committee
New Delhi : In the wake of the case of defaulting liquor baron Vijay Mallya, parliament's consultative committee attached to the finance ministry on Wednesday suggested a list of all defaulters, whose loans have been written off, be made public and asked for exemplary action against wilful defaulters.
 
These were among the suggestions made at a meeting of the parliamentary committee here with Finance Minister Arun Jaitley and senior officials of the ministry to discuss the non-performing assets, or bad loans, of public sector banks (PSBs), a finance ministry statement said.
 
"Some members suggested that a committee be constituted to finalise recovery process in case of loans given to big corporate houses by various PSBs," it said.
 
Making his opening remarks, Jaitley said there are two categories of defaulters -- those who are unable to pay back due to economic slowdown, as well as those who are wilful defaulters, including loans sanctioned without due diligence by the banks -- and that the government has taken various measures to deal with both these categories, the statement added.
 
Jaitley also noted that the government had taken various measures to revive the stressed sectors -- mainly steel, textiles, power and roads -- besides providing Rs.25,000 crore each in the budgets for the last and current fiscals for recapitalising of banks.
 
In its report on Asia-Pacific sovereigns released on Wednesday, American credit ratings agency Moody's cautioned that a prolonged worsening in asset quality at state-run banks is the main threat to India's sovereign credit profile and suggested the government provide for higher recapitalisation of stressed banks.
 
"The main threat to the sovereign credit profile would be via a significant and prolonged worsening in asset quality at state-owned banks, beyond the recognition of bad loans currently under way, that causes contingent liabilities to crystallise on the government's balance sheet," it said.
 
Meanwhile, a consortium of 13 banks led by the State Bank of India on Monday told the Supreme Court that from the non-disclosure of assets by beleaguered liquor baron Vijay Mallya, it was not possible to assess his capacity to pay their outstanding dues to the tune of more than Rs.9,000 crore advanced to his now-grounded Kingfisher Airlines.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

Chandragupta Acharya

7 months ago

There seems to be a misconception that if a loan is written off, the borrower is set free. This is incorrect. Write off is just an accounting treatment internal to the bank. The borrower continues to be liable for the loan even if bank has written it off. In fact, the borrower need not even know the status of his loan. The bank should continue to make efforts for recovery even if the loan is written off. Write off is not a loan waiver.

Ramesh Poapt

7 months ago

List of write offs above rs.5 lacs should be disclosed in public by banks.reference from public should be invited to inform about the undisclosed assets of the borrowers. suitable incentives may also be considered to those, where recovery is made in part or full.

India's rating at risk from government debt levels: Moody's
Hong Kong : American credit rating agency Moody's on Wednesday retained India's outlook at 'positive' saying the country's history of double-digit inflation, high government debt levels, weak infrastructure and a complex regulatory regime have constrained its credit profile, while China featured high on the scale of leverage, or debt, risk for sovereigns in the region.
 
In its report on Asia-Pacific sovereigns, Moody's Investors Service also cautioned that a prolonged worsening in asset quality at state-run banks is the main threat to India's sovereign credit profile and suggested the government provide for higher recapitalisation of stressed banks.
 
"The main threat to the sovereign credit profile would be via a significant and prolonged worsening in asset quality at state-owned banks, beyond the recognition of bad loans currently under way, that causes contingent liabilities to crystallise on the government's balance sheet," it said.
 
"Our positive outlook on India's rating is based on our expectation of continued but gradual policy efforts to reduce the sovereign risks posed by high fiscal deficits, volatile inflation and weak bank balance sheets," it added.
 
The report also said that implementation of the Goods and Services Tax (GST) and bridging large infrastructure deficit are a difficult task before India's government.
 
Moody's, which has given for India a credit rating at 'Baa3' that is just a level above their junk category, said it would consider a rating upgrade after 12-18 months, depending on improvement in macroeconomic parameters.
 
Public sector banks (PSBs) are currently engaged in an asset quality review (AQR) following a Reserve Bank of India directive, which has led to an increase in bad loans and provisioning.
 
Industry body Assocham said last week that the slowdown in steel, textiles, aluminium and others coupled by the ongoing AQR is likely to push banks' stressed assets to Rs.10 lakh crore-mark in the fourth quarter of 2015-16.
 
"At the end of December (2015), the total stressed assets of all the banks were at Rs.8 lakh crore which is expected to see a significant jump in the current quarter itself," said a study by the industry body.
 
It said total stressed assets of banks rose four-fold to Rs.7.40 lakh crore by the end of March 2015 from Rs.2.33 lakh crore as of March 2011.
 
Assocham noted that in nine months from April to December 2015, gross non-performing assets (NPAs), or bad loans, rose by Rs.1 lakh crore from Rs.2,98,641 crore to Rs.4,01,590 crore.
 
In percentage terms, gross NPA ratio of public sector banks shot up from 5.43 percent in March 2015 to 7.30 percent by December 2015, while mounting loans have made 11 PSBs report losses of Rs.12,867 crore in Q3 of 2015-16.
 
Noting that China, which has 'Aa3 negative' rating and whose state-owned enterprise (SOE) liabilities are particularly large, Moody's said on Wednesday that total liabilities in the SOE sector rose to more than 115 percent of GDP in 2015, from under 100 percent in 2012.
 
"Stress in China's SOE sector implies a rising probability that some liabilities will crystallize on the government balance sheet. China's climbing debt burden and sizable contingent liabilities were a key driver of our decision to place a negative outlook on the sovereign rating in March 2016," the report said.
 
"Three factors will likely determine sovereign credit trends in the region. First, the degree and nature of the build-up in leverage, and the extent of buffers that counterbalance related risks. Second, how economies respond tothe opportunities and challenges offered by China's rebalancing," it added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

Ramesh Poapt

7 months ago

Govt has directed to PSBs to find out ways to recapitalize of their own.it is a tough task for them.Recovery is equally difficult.RBI is diluting provision and reserve norms and resorting to liquidity infusion.Mergers may not solve the problem.Proposed insolvency act,refurbishing DRTs,SARFARASI Act may help to some extent.But payment banks,small banks may snatch away the business share.FII limit to 49% will play its role in due course.MoreNPAs expected by fy 2017 end.Tricky situation indeed! May be future opportunities somewhere.........!

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