Regulations
Set up insolvency regulator, information utilities: Committee
Establishment of Insolvency Regulator, Insolvency Adjudicating Authority, and Insolvency Information Utilities are among the recommendations of the Bankruptcy Law Reform Committee made to the central government on Wednesday.
 
In the report submitted to union Finance Minister Arun Jaitley, the committee also made various other recommendations including fast tracking of insolvency proceedings, regulation of professionals/agencies involved in insolvency, an official statement said.
 
The report, submitted by chairman of the Bankruptcy Law Reform Committee T.K. Viswanathan, the former law secretary, to Jaitley also framed the draft Insolvency and Bankruptcy Bill, consolidating the existing laws relating to insolvency of companies, limited liability entities (including limited liability partnerships and other entities with limited liability), unlimited liability partnerships and individuals.
 
According to the committee, the enactment of the proposed Bill will provide greater clarity in the law. 
 
It will also facilitate the application of consistent and coherent provisions to different stakeholders affected by business failure or inability to pay debt and address the challenges being faced for swift and effective bankruptcy resolution.
 
The Bill seeks to improve the handling of conflicts between creditors and debtors, avoid destruction of value, distinguish malfeasance vis-a-vis business failure and clearly allocate losses in macroeconomic downturns.
 
The Viswanathan committee was set up after Jaitley in his 2015-16 budget speech said the bankruptcy law reform is a key priority for ease of doing business in the country.
 
The committee report has been uploaded on the finance ministry's website for public comments by November 19, 2015.
 
After taking the suggestions/views into consideration, the government will take a final decision on the report and introduce the bill in Parliament as early as possible, the finance ministry said.
 
The committee has recommended Debt Recovery Tribunal (DRT) to be the adjudicating authority with jurisdiction over individuals and unlimited liability partnership firms.
 
The National Company Law Tribunal (NCLT) shall be the adjudicating authority with jurisdiction over companies, limited liability entities.
 
The National Company Law Appellate Tribunal (NCLAT) shall be the appellate authority to hear appeals arising out of the orders passed by the Regulator in respect of insolvency professionals or information utilities.
 
The draft bill proposes to revamp the revival/re-organisation regime applicable to financially distressed companies and limited liability entities; and the insolvency related liquidation regime applicable to companies and limited liability entities.
 
The draft bill prescribes a period of 180 days for dealing with applications for insolvency resolution. It can be extended for 90 days only in exceptional cases.
 
The draft bill also provides for a fast track insolvency resolution process- 90-day limit- which may be applicable in certain categories of entities.
 
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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Indian government takes exception to Moody's Analytics report
The Indian government on Wednesday reacted sharply to a comment by Moody’s Analytics that Prime Minister Narendra Modi must check party members from making controversial statements, or risk losing global credibility.
 
"It is with regret the Government of India notes the irresponsible and distorted reporting by certain sections of the Indian media on what was the personal opinion of a junior associate economist employed with Moody’s Analytics," the government said in a statement.
 
"It is surprising that sections of the Indian media failed to make a distinction between Moody’s Analytics which is merely a data and analytics firm and Moody’s Investor Services, which provides Ratings services," it said.
 
"Opinion of a junior associate economist employed with Moody’s Analytics has been splashed all across implying it as the opinion of Moody’s Analytics. The government notes with distress that the personal opinion of a junior analyst was passed off as a commentary on India by a rating agency by the media to buttress the narrative it wants to portray."
 
In an analysis titled "India Outlook: Searching for Potential", Moody's Analytics had said that while the prime minister's BJP does not have a majority in the upper house to pass crucial reforms, the government also hasn't helped itself with controversial comments from various members. 
 
"While Modi has largely distanced himself from the nationalist gibes, the belligerent provocation of various Indian minorities has raised ethnic tensions. Along with a possible increase in violence, the government will face stiffer opposition in the upper house as debate turns away from economic policy," it said.
 
"Modi must keep his members in check or risk losing domestic and global credibility."
 
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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Government serves Volkswagen notice on emission norms
Automobile manufacturer Volkswagen Group India on Wednesday
 
said that it has received a notice from the government over the alleged charges of manipulating emission norms in India, as it has done in the US.
 
The company said that it will respond to the notice issued by the Automotive Research Association of India (ARAI) by November 30, 2015.
 
Earlier, the government authorised the ARAI to conduct an investigation into the matter. The ARAI is a research association formed between the automotive industry and the ministry of heavy industries.
 
Subsequently, a high-level team headed by the top brass of the Pune-based ARAI submitted its preliminary findings to the government on September 30.
 
According to the company, its representatives had met with government and ARAI officials on October 29.
 
"It was agreed with the government that Volkswagen Group India will present its results from the evaluations regarding the diesel engine emissions topic by the end of November 2015," the company said in a statement.
 
"The next steps would depend on the findings from these evaluations. Volkswagen Group India will continue to fully co-operate with the government in this matter."
 
The development comes after the automobile manufacturer was caught fudging emission data of its diesel powered cars to bypass strict emission norms in the US.
 
The fudging scandal began unfolding in the last week of September, when the European car giant said it had used a software in the US to provide false emission test results.
 
The company said its vehicles with 1.6- and 2.0-litre diesel engines are "affected by the manipulations that are being talked about."
 
The company's Jetta, Beetle, Golf and Audi A3 models in the US from 2009 to 2015, and the Passat from 2014-15, were fitted with the devices which produced doctored results. 
 
Several countries around the world and Europe have started their own inquiry to find out whether the fudging practice also took place there.
 
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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