The Summit concluded with the panel discussion on ways to ensure Financial Inclusion in Global and Personal Finance Post Covid 19 Recovery. The Finance panel consisted of Ajay Nahar, GM, Wipro; Mayank Gupta, Group CFO, CarDekho; Niraj Kaushik, Director - Finance, Opus Consulting; Pramod Gupta, Executive VP and CFO, Arcil; Shailesh Jain, Director - Finance, Credit Suisse, Vikrant Ponkshe, CFO, Being Catalyst moderated by Swati Khandelwal, Executive Editor, ZEE Business.

In Asset Reconstruction Company (India) Limited v. Mohammadiya Educational Society, the NCLAT, New Delhi held that a society registered under the Andhra Pradesh Society Registration Act, 2001 (AP Act) cannot be subject to insolvency resolution process for corporate persons laid down under Part II of the Code. The Appellant contended that pursuant to Section 18 of the AP Act, a society registered under the AP Act was rendered the status of a body corporate and was, therefore, amenable to the jurisdiction of the adjudicating authority under the Code, in view of the definition of a corporate person under Section 3(7) of the Code.

Even as the interest in buying out the development financial institution (DFI) turned full-scale bank, IDBI Bank, is gaining some momentum, there is a view that the government and the LIC should get the valuation upside as the operating environment is now positive for the bank with the setting up of bad bank, the turnaround in its operations, business synergy initiatives rolled out with LIC partnership and the gradual opening of the economy post second wave of pandemic. Recently, the bank also offloaded its entire stake in the Arcil, an asset reconstruction company. The sale of non-core assets is also expected to improve capital levels.

Aditya Birla Asset Reconstruction Company, Asset Reconstruction Company of India, Kotak Mahindra Bank-backed Phoenix ARC and JM Financial ARC are among 12 entities that have expressions of interest to acquire debt of distressed thermal power company Coastal Energen from State Bank of India, people aware of the matter said. Others who submitted expressions of interest by the September 9 deadline were ASREC (India), Omkara ARC, UV ARC, Prudent ARC, Alchemist ARC, Invest ARC, Maximum ARC and Paras ARC, the people said. Aditya Birla ARC, Arcil, Phoenix ARC, JM Financial ARC and Deutsche Bank did not respond to requests for comment.

There’s a suggestion from some quarters within official circles that the IL&FS should sell the debt/assets in the red category to asset reconstruction firm ARCIL, sources said. The challenges before IL&FS are time lines for approvals from NCLT and NCLAT, non-receipt of annuities amounting to over Rs 700 Crore, complex transactions involving PSUs and state government as joint venture partners, non-receipt of NOCs from JV partners and non-receipt of approval from government authorities like NHAI. Over 20 creditors have filed appeals with the Supreme Court against the Resolution Framework. Besides, there have been coercive creditor actions like debits without authorisation, refusal for meeting even “going concern payments” and refusal to create fixed deposits, interest-bearing instruments in contravention of court orders.