asset reconstruction companies

'Physical Delivery Of Commodities Needs GST Tweaks'

In a surprising twist, Justice K.V. Viswanathan of the Supreme Court opted to recuse himself from a case that had reached the judgment reservation stage. Upon reflection, he realized his prior role in representing the petitioner, Alchemist Asset Reconstruction Company, throughout his distinguished legal career.

The insolvency resolution of Jaiprakash Associates Ltd. is embroiled in a dispute over the approval of Adani Enterprises' bid over Vedanta's higher offer. Vedanta alleges procedural unfairness and a "commercial conspiracy," challenging the Committee of Creditors' reliance on "commercial wisdom" over value maximisation.

A Bench of Justice J.B. Pardiwala and Justice R. Mahadevan delivered the judgment while deciding appeals arising from insolvency proceedings initiated against Takshashila Heights India Private Limited, the developer of the real estate project Takshashila Elegna in Ahmedabad.

Private asset reconstruction companies (ARCs) will need to come up with upfront cash or provide bank guarantees if they intend to compete with the national asset reconstruction company (NARC) for purchase of bad loans.

The RBI has barred asset reconstruction companies (ARCs) from buying bad loans through deals where there is scope for banks or lenders to fund the purchase.

The Reserve Bank of India has come up with some uniform accounting rules for asset reconstruction companies or ARCs probably to stop them inflating short-term profits.

Foreign investment ceiling in asset reconstruction companies has been increased to 74% from 49%, a move aimed at bringing more foreign expertise in the segment.

RBI has imposed restrictions on ECL Finance and EARCL, companies of the Edelweiss group, for 'evergreening' stressed loans, where lenders extend credit to borrowers unable to repay existing loans.

With banks purging their books of bad loans in recent years asset reconstruction companies —entities that specialize in extracting value from bad loans — have had a tough time getting business. But with almost 3% of bank loans expected to be classified as non-performing assets for the year ended March 2012, business looks like it’s going to pick up.

As part of its balance sheet clean-up exercise, state-owned Punjab National Bank plans to sell up to Rs 3,000-crore bad loans to asset reconstruction companies (ARCs) in the fourth quarter. The bank is also looking at one-time settlement proposals and other measures to reduce bad loans.

Public sector banks-owned National Asset Reconstruction Company (NARCL) has emerged as the highest bidder for the twin SREI companies. According to sources, the bad bank has bid Rs 5,555 crore for the two companies — Srei Infrastructure Finance (SIFL) & Srei Equipment Finance (SEFL).

The state recently issued an ordinance to increase the corpus of the contingency fund from Rs 150 crore to Rs 350 crore.This has been done to provide share capital to the Maha Asset Reconstruction Company. The government had sanctioned Rs 111 crore for the purpose in September.

Tulip Star Hotel (formerly known as Centaur) at Juhu is up for sale. The Asset Reconstruction Company (India) Ltd (Arcil), which invited bids from prospective clients last week, has set a reserve price of Rs 1,315 crore for the six-acre sea-facing property on Juhu Tara Road.