INSUBCONTINENT EXCLUSIVE:
may have to classify the loans given to it as non-performing assets (NPA or bad loans) under the RBI norms, make provisions for them and
report these to the exchanges, according to official sources.So far, the Reserve Bank of India (RBI) has not given any directions in this
regard as fund exposure of individual banks are their autonomous commercial decisions even when an account has gone default and the promoter
annual report says it has a debt of Rs 1,500 crore and mentions Allahabad Bank, Andhra Bank, Bank of India, UCO Bank, Union Bank of India,
directors, Rakesh Wadhawan and his son Sarang Wadhawan, in relation to the Rs 4,355-crore fraud at the Punjab and Maharashtra Cooperative
currently in default with various banks and Bank of India had taken the real estate firm to the National Company Law Tribunal (NCLT) for
recovering dues of Rs 522 crore before the alleged role of HDIL in the Punjab and Maharashtra Cooperative Bank fradulent deals came to light
The case is currently under insolvency and Bankruptcy Code (IBC).According to an official source, multiple investigative agencies probing
the company also limits the recovery prospects for banks of their loans to HDIL as it limits their rights to the assets of the defaulting
company.On the impact of the concurrent processes of the NCLT and the Enforcement Directorate (ED) on banks recovering their loans, disputes
determine the aspect of default on part of the debtor to its financial creditors
Any antecedent wrongdoing amounting to attracting any criminal proceedings is the exclusive domain of the respective agency, be it CBI, ED
or SFIO or NCLT, does not seem to have much of a say in this aspect under the insolvency law"."It is imperative to have a high degree of
coherence between the various independent investigating bodies and the judicial process under the insolvency law to obviate any inter se
This can largely be achieved either by legislative guidance or by judicial determination," he added.Regarding the duty of banks to provide
details to exchanges on their amount of dues pending, Maheshwari said that "banks should completely adhere to all its reporting requirements
mandated by law as breaching of the same has severe legal consequences".Get Breaking news, live coverage, and Latest News from India and
around the world on TheIndianSubcontinent.com
Catch all the Live TV action on TheIndianSubcontinent 24x7 and TheIndianSubcontinent India
Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.
