Latest news with #Insolvency
Time of India
2 days ago
- Business
- Time of India
SBI classifies RCom, its promoter Anil Ambani as 'fraud'; to lodge complaint with CBI
State Bank of India has classified Reliance Communications along with promoter director Anil D Ambani as 'fraud' and is also in the process of lodging complaint with CBI, Parliament was informed on Monday. The entities were classified as fraud on June 13, 2025 in accordance with the RBI's Master Directions on Fraud Risk Management and Bank's Board-approved Policy on Classification, Reporting & Management of Frauds, Minister of State for Finance Pankaj Chaudhary said in a written reply in the Lok Sabha. Explore courses from Top Institutes in Select a Course Category Management PGDM Digital Marketing Technology Finance Leadership Artificial Intelligence Operations Management MBA healthcare Public Policy Product Management Degree Cybersecurity others MCA Healthcare Data Analytics Design Thinking Others Data Science CXO Project Management Data Science Skills you'll gain: Duration: 10 Months IIM Kozhikode CERT-IIMK GMPBE India Starts on undefined Get Details Skills you'll gain: Duration: 9 Months IIM Calcutta CERT-IIMC APSPM India Starts on undefined Get Details Skills you'll gain: Duration: 11 Months IIM Kozhikode CERT-IIMK General Management Programme India Starts on undefined Get Details "On June 24, 2025, the bank reported classification of fraud to RBI, and is also in the process of lodging complaint with CBI," he said. Further, on July 1, 2025, as part of disclosure compliance, Resolution Professional of RCom informed the Bombay Stock Exchange regarding fraud classification by the bank. The credit exposure of SBI in RCom includes, fund-based principal outstanding amount of Rs 2,227.64 crore along with the accrued interest and expenses with effect from August 26, 2016 and non-fund based Bank Guarantee of Rs 786.52 crore, he said. Live Events RCom is undergoing Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016. The resolution plan was approved by the Committee of Creditors and filed with the National Company Law Tribunal (NCLT), Mumbai on March 6, 2020, and NCLT approval is awaited. The bank has also initiated Personal Insolvency Resolution Process under IBC against Anil D Ambani and the same is being heard by NCLT, Mumbai, he said. The bank had earlier classified the account and promoter Anil D Ambani as 'fraud' on November 10, 2020 and filed a complaint with the CBI on January 5, 2021. However, he said, the complaint was returned in view of the 'status quo' order dated January 6, 2021 by the High Court, Delhi. Meanwhile, a Supreme Court judgement dated March 27, 2023 in State Bank of India & Others Vs Rajesh Agarwal & Others case mandated that lenders provide borrowers with an opportunity to represent before classifying their accounts as fraud. Accordingly, he said, the fraud classification in the account was reversed by the bank on September 2, 2023. The fraud classification process was re-run, and the account was again classified as 'fraud' after following the due process as per RBI circular dated July 15, 2024. In reply to another question, Chaudhary said there is no proposal to waive the outstanding agricultural loans under consideration with the Union Government. However, he said, the Union Government has taken several measures to provide relief and to improve the economic conditions of farmers which includes timely and adequate credit through Kisan Credit Card (KCC) under which crop loan of up to Rs 3 lakh is provided at subsidized interest rates under the Modified Interest Subvention Scheme (MISS). It comes with additional incentives for timely repayment, fixation of progressively increased agricultural credit target, issuance of revised Priority Sector Lending guidelines to ensure improved credit flow to the agricultural sector etc. Replying to another question, Chaudhary said the Government of India launched Bima Sakhi- 'Mahila Career Agent (MCA) Scheme' on December 9, 2024. LIC paid Rs 62.36 crore to Bima Sakhis as stipend in FY2024-25, he said. In the current financial year (2025-26), he said, LIC has provided a budget of Rs 520 crore for the scheme, out of which Rs 115.13 crore has been paid up to July 14, 2025. At present, there are 2,05,896 Bima Sakhis in the country. LIC provides opportunities to Bima Sakhis, in furtherance of their career by way of several performance-based incentives. Graduate Bima Sakhis, after completion of 5 years, may participate in the recruitment process for the post of Apprentice Development officers of LIC, upon fulfilling the eligibility criteria, he said. Apart from above, LIC pays stipend to Bima Sakhis for first 3 years from their appointment to support them build a life insurance agency career, he said. The stipend scheme is in addition to their commission pay-outs and is subject to certain performance parameters, he said, adding, the amount of the stipend ranges from Rs 7,000 per month in the first year to Rs 5,000 in the third year. PTI
Yahoo
04-07-2025
- Business
- Yahoo
Glencore in talks with UK government over insolvent Lindsey oil refinery supply, source says
LONDON (Reuters) -Commodities trader Glencore is in talks with the British government over the status of its supply and offtake contract with the insolvent Lindsey oil refinery, according to a source familiar with the situation. The 113,000-barrel-per-day refinery was owned by Prax prior to its insolvency which was announced on Monday, alongside the insolvency of Prax's parent group, putting hundreds of jobs at risk and potentially increasing Britain's reliance on fuel imports. Glencore declined to comment. The government has ordered an investigation into Prax's directors and the circumstances surrounding the insolvency. Glencore last year won a tender to supply crude oil to the Lindsey refinery, replacing rival trader Trafigura, three sources with knowledge of the deal told Reuters at the time. Consultancy FTI, the special manager hired by the government to assist the so-called Official Receiver of the insolvent refinery, directed questions on the refinery to Britain's departments for Business and Trade as well as Energy Security and Net Zero. The Official Receiver is tasked with dealing with suppliers of the site. Neither department commented on talks with Glencore or how long the refinery would be able to operate if no deal was reached. A spokesperson for the department for Energy Security and Net Zero pointed to its statement from Monday which said that the government would ensure supplies were maintained. Sign in to access your portfolio
Zawya
26-06-2025
- Business
- Zawya
German corporate insolvencies at highest level in a decade, study shows
Corporate bankruptcies in Germany were at their highest level in a decade in the first half of 2025, as firms in Europe's largest economy struggle with weak demand, rising costs and uncertainty, a study by economic tracking agency Creditreform showed on Thursday. Some 11,900 corporate insolvencies were registered in the first six months of this year, 9.4% more than in the same period last year, the agency said. "Germany remains in a deep economic and structural crisis," said Creditreform chief economist Patrik-Ludwig Hantzsch. Companies are increasingly having problems as their financial reserves dwindle and loans are sometimes no longer being extended, added Hantzsch. He warned that the risk of insolvencies remains high for the rest of the year as Germany, which has been in recession the past two years, is not seen making a significant recovery. More economic momentum is not expected until next year, when the government's 500 billion euro ($586 billion) investment fund is expected to take effect. Roughly 141,000 employees worked at the affected companies, an increase of 6%, driven by large-scale insolvencies, the agency said. "The persistently high level of insolvencies is increasingly triggering chain reactions," said Hantzsch. Consumer insolvencies have also been on the rise, up 6.6% to around 37,700, as households are under pressure due to a rise in the cost of living and job losses, particularly in industry. Germany's federal statistics office reported final first-quarter insolvency figures earlier this month that showed corporate insolvencies rose by 13.1%. ($1 = 0.8529 euros) (Reporting by Klaus Lauer, Writing by Miranda Murray; Editing by Hugh Lawson)
Online Citizen
15-06-2025
- Business
- Online Citizen
Authorities to criminalise firms soliciting bankruptcy filings to exploit debt relief scheme
SINGAPORE: The Ministry of Law (MinLaw) has proposed legal amendments to prevent abuse of the Debt Repayment Scheme (DRS), a bankruptcy alternative for individuals with smaller debts. The move targets consultancy firms that allegedly encourage debtors to borrow money and self-petition for bankruptcy solely to qualify for the DRS. On 9 June 2025, MinLaw announced plans to introduce a new offence under the Insolvency, Restructuring and Dissolution Act (IRDA). This offence will criminalise the solicitation of bankruptcy applications by businesses. The proposed punishment includes a fine of up to S$10,000, imprisonment for up to three years, or both. Regulated professionals such as lawyers, accountants, and financial advisers—as well as recognised charitable entities—will be exempted from the law. The DRS was introduced in 2009 in response to financial challenges faced during the Great Recession. It offers wage-earning debtors with unsecured debts not exceeding S$150,000 a way to repay creditors under a structured plan lasting no more than five years. According to MinLaw, an increasing number of debtors are engaging consultancy firms that charge substantial fees and encourage clients to incur additional debt to fund these services. These practices have led to a rise in debtor-initiated bankruptcy filings. The Straits Times reported in March that in 2024, 2,928 out of all bankruptcy applications—or 59 percent—were filed by debtors themselves. MinLaw has expressed concern that many such filings are motivated not by genuine financial distress but by attempts to obtain a partial discharge of debts under the DRS. Under current law, debtors must file for bankruptcy to be considered for the scheme. However, the ministry emphasised that the scheme was never intended for abuse. In addition to the new criminal offence, MinLaw is proposing two further grounds under which debtors may be deemed unsuitable for the DRS. The first is the failure to pay the preliminary fees totalling S$600, which are required to cover administrative costs borne by the Official Assignee (OA), the officer overseeing the scheme. The second is where a debtor incurs debt with no reasonable expectation of repayment—particularly within 12 months prior to a bankruptcy application. This aims to address cases where individuals take on new loans shortly before applying for the DRS, effectively using the scheme to bypass full repayment. MinLaw is also proposing to designate this same behaviour—incurring debt without a reasonable expectation of repayment—as a ground for failure of the DRS, even after a debtor has been accepted into the scheme. This would empower the OA to terminate repayment plans and issue a Certificate of Failure, allowing creditors to commence bankruptcy proceedings. To enhance administrative efficiency, a new statutory four-week deadline for creditors to file proofs of debt is also proposed. At present, delays in creditor submissions can disrupt the planning and implementation of repayment arrangements, particularly if new claims exceed the S$150,000 threshold. Under the changes, creditors who miss the deadline may still request an extension, but must provide a valid reason. Those who fail to file on time without justification will forfeit claims after a debtor successfully completes the plan. These proposed legislative amendments follow a previous review of the DRS in 2016, which raised the debt threshold from S$100,000 to S$150,000. Other minor procedural updates are also proposed, including changes to appeal procedures and timelines, and clarification of existing statutory provisions. MinLaw is inviting public feedback on the proposals through an online consultation portal. Submissions are open until 27 June 2025. The ministry said the proposed changes are aimed at preserving the integrity of the DRS while ensuring that both debtor rehabilitation and creditor interests remain balanced and protected.
Time of India
28-05-2025
- Business
- Time of India
Insolvency framework amended to simplify compliance
NEW DELHI: The bankruptcy regulator has amended the framework for reporting the corporate insolvency resolution process ( CIRP ) to ease compliance burden without undermining effective oversight, according to a circular. Under the revised reporting framework, the existing nine forms will be compressed into five by removing duplication, streamlining data requirements and leveraging technology for auto-population of information, the Insolvency and Bankruptcy Board of India ( IBBI ) said in the circular dated May 26. The regulator has introduced a standardised monthly reporting cycle, replacing the current system of multiple event-based due dates during the month, it said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Obehag i dina fingrar? Vi inbjuder dig att ge detta ett försök. Arthorol Pro Få erbjudande Undo The changes have been incorporated by amending the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. Filings on debt resolution proceedings have to be made on or before the tenth day of the subsequent month, except where the resolution plan or liquidation has been cleared by the tribunal, which has to be reported within seven days. The new forms, the regulator said, will be made available on its website from June 1. No penalty will be imposed for delayed filing of forms during the September quarter. The idea is to give some time to insolvency professionals to get acquainted with the new forms and to address any technical issues, it said. Live Events The forms have to be filed on an electronic platform that will be hosted on the regulator's website. The IBBI has been taking steps to expedite the resolution process and reduce compliance requirements. India Ratings said in a report that the procedural changes introduced this year "aim to improve stakeholder representation, simplify compliance, and enhance transparency in the resolution process". The latest data released by the regulator showed that resolutions outpaced liquidations in 2024-25. The March quarter saw the highest resolution-to-liquidation ratio since the insolvency law's inception in 2016, ICRA said in a report.
