RERA Can Override Companies Act
The Rajasthan Real Estate Regulatory Authority has said that a winding up order on a company will not bar the proceedings of the Real Estate (Regulation and Development) Act, 2016. A winding up order issued by court, forces an insolvent company into compulsory liquidation. The court appoints a liquidator to facilitate the liquidation wherein all assets are liquidated so as to pay the creditors. 
 
RERA came into force on 1st May 2016, to regulate and promote the interest of the consumers in real estate sector. It also facilitates speedy dispute redressal mechanism for the aggrieved.
 
The current case was in relation to an application filed by the real estate builder seeking a stay on the proceedings of Delhi High Court which had appointed a liquidator for the builder while the proceedings under RERA were still pending. 
 
The builder argued that as per Section 279 of the Companies Act, no suit or legal proceedings can be started or continued against the company after the winding up order is being passed. It also added further that it could be done only with the permission of National Company Law Tribunal.
 
But the Authority observed that no winding up order has been passed. It also held that even in case winding up order is passed, it will not impact the proceedings of RERA.
 
The provisions of Section 31 of RERA will will prevail over Section 279 of Companies Act since the former is a special act of Parliament and came into effect after the Companies Act,2013.
 
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    State of the Economy-IX: After Consumption Slowdown, India Set To Face Wider Trade Deficit
    Impacted by a consumption slowdown, India's economy faces another peril, that of rising trade protectionism which, along with tensions in the Middle East, will hamper merchandise exports and widen the trade deficit, as it did in April.
     
    The fact that India has had a trade deficit since 1988 might not come as a surprise, for unlike its east Asian neighbours, the country relies more on internal consumption for its economic growth.
     
    But a wider trade deficit, at this time, will come as a double whammy for the economy which already faces slowdown in internal consumption.
     
    The trend seems to continue with April data showing a widening gap. 
     
    However, the data from 1988 to 2018 shows that overall trade balance as a percentage of the GDP has come down substantially.
     
    "The data clearly suggest that the trade deficit is primarily on account of imports of intermediary products and not the finished goods," Export Promotion Council of India chairman Mohit Singla told IANS.
     
    "The trend also suggest that slowly, we are moving away from non-renewable energy to renewable energy sources, which depicts, that in time to come, our import bill owing to import of oil will be much less."
     
    Mr Singla also said that "due to sustained efforts of the government", finished products have been replaced by intermediary products which will definitely reduce India's trade deficit.
     
    According to Madhavi Arora, lead economist, Edelweiss Securities, global growth is likely to remain patchy, implying weaker exports demand and weaker manufacturing production.
     
    "With India's exports now more demand and income sensitive, slower global growth will hit exports growth as well. With trade losing its shine as an engine of global growth, some economies are also looking inward to spur up domestic demand.
     
    "Besides, to give boost to exports, the country needs to work on its competitiveness, thus implying focusing on improvement in productivity of all factors of production rather than simply relying on exchange rate as a lever for exports boost," she said.
     
    In April, India's merchandise exports inched up 0.64%, on a year-on-year basis to $26.07 billion from $25.91 billion in the corresponding month of last year.
     
    On the other hand, imports grew by 4.48% to $41.40 billion, from $39.63 billion reported in the corresponding month of 2018.
     
    Segment-wise, oil imports in April were $11.38 billion, which was 9.26% higher in dollar terms, compared to $10.41 billion in April 2018.
     
    Additionally, the trade deficit during the month under review widened to $15.33 billion as against the deficit of $13.72 billion in April 2018.
     
    Nonetheless, on an overall basis, India's exports including merchandise and services in April are estimated to have grown by 1.34% to $44.06 billion over April 2018.
     
    Commenting on April's data, Federation of Indian Export Organisations (FIEO) president Ganesh Kumar Gupta said that $26.07 billion with a growth of 0.64%"is not at all encouraging as almost all the labour-intensive sectors, including leather and leather products, gems and jewellery, engineering goods... dominated by MSMEs, are into negative territory."
     
    "These sectors are still facing the problem of liquidity besides various other challenges, including the global trade war, protectionism, fragile global conditions and constraints on the domestic front," Mr Gupta was quoted as saying in a statement.
     
    Besides, he expressed his concerns on the rising trade deficit primarily on account of swelling crude and gold import bills.
     
    In addition, the FIEO chief opined that with rising trade tensions between US and China, the global trade scenario may further worsen, putting more pressure on Indian exports in months to come.
     
    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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    Next government would need to fix the economy first: Report
    The macro-economic situation has been mixed by the end of last fiscal, needing direct intervention by the next government in areas such as agriculture, employment and the banking sector, a report said on Thursday.
     
    The Care report said the government must look internally and fill all vacancies that have been on hold. For private sector employment generation, the government needs to focus on the SME segment as well as start-ups so as to increase the opportunities. 
     
    "But we need to ensure that core manufacturing takes place and not just assembly of components," the report said.
     
    On agriculture the report in order to reduce reliance on monsoon for agriculture production, the impending ambitious project of inter-linking Indian rivers should be pushed as it can be a long-term solution for the agriculture-related issues. 
     
    On the banking sector, the report flagged that the sector is going through challenges of capital and asset quality. "The banks continue to be affected by the delays in the NCLT resolution process. Hence a review of the NCLT procedure with the view of speeding up the process, seems necessary. 
     
    "The IBC may need some amendments as the rate of resolution of bankrupt companies can be improved," the report said.
     
    The report said the government has been the main driver of capex in the last 2-3 years and the steady pace of investment should continue. 
     
    "The focus must now be on reinvigorating private investment and here it would be necessary to review the clogs that are in the way of investment," 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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