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Bankers urged to approach higher authorities in insolvency cases

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New Delhi, Jan 21 (IANS) Soon after the SBI put on sale its loan exposure in bankrupt Essar Steel, the government on Monday held a meeting to review the progress in the 12 biggest default cases and urged the bankers to take up issues of delay with the higher authorities.

“Bankers have been suggested to take up issues related to delay in resolution processes with the higher levels of authority including bankruptcy and judicial courts,” said a source who attended the five-hour long meeting chaired by Corporate Affairs Secretary Injeti Srinivas.

Along with Insolvency and Bankruptcy Board of India (IBBI) Chairman M.S. Sahoo, Srinivas met bankers and resolution professionals of the 12 biggest default cases, which account for one-fourth of the gross non-performing assets (NPAs) in state-run banks.

“The bankers in the Committee of Creditors (CoC) are the vital stakeholders and they should agitate before different forums and escalate the matter to higher authorities as huge amount of money is being lost by them due to the delay in resolution or liquidation,” he said.

On January 16, India’s largest lender State Bank of India (SBI) put its entire loan exposure of Rs 15,431.44 crore in Essar Steel on sale even as its resolution was round the corner. The CoC had approved ArcelorMittal’s resolution proposal on October 25, 2018.

However, a group of creditors, including Essar Steel promoters, have challenged the decision of the CoC. The CoC, led by the SBI, has requested bankruptcy court National Company Law Appellate Tribunal (NCLAT) to dispose off the case by the first week of February.

Like Essar Steel, which was admitted for insolvency proceedings in August 2017 and is taking much longer than the mandatory 270 days for resolution under the Insolvency and Bankruptcy Code (IBC), many of the other big default cases are also seeing slow progress.

Till date, only three of the 12 big default cases namely Bhushan Steel Ltd, Monnet Ispat and Energy Ltd and Electrosteel Steels Ltd have been resolved under the new bankruptcy rules of IBC, which can be a game-changer for India Inc and banks but for the inordinate delays.

In June 2017, the RBI had identified 12 companies with overdue above Rs 5,000 crore each for immediate bankruptcy proceedings. Their total NPA was Rs 1,75,000 crore.

While Srinivas expressed confidence in the meeting about achieving resolution in many of the 12 bankruptcy cases within this fiscal, three cases are very close to resolution apart from the three already resolved.

In the case of Mumbai-based textile manufacturing company Alok Industries, one of the 12 cases, the CoC has approved its resolution for about six months now but is awaiting the approval from the National Company Law Tribunal (NCLT).

Apart from Essar Steel whose resolution is also round the corner, in the case of Bhushan Power and Steel Ltd the order has been reserved. There is no resolution plan for Ahmedabad-based shipbuilding company ABG Shipyard Ltd and it can be sent for liquidation.

Sources said that delays are not only happening with the resolution plans but even liquidation cases have been held back for months.

–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma

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World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.

Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.

During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.

On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”

Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.

It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.

Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.

Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”

On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”

The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.

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