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LS passes Insolvency Code amendment Bill
New Delhi, July 31 (IANS) A Bill to amend the Insolvency and Bankruptcy Code (IBC), 2016, allowing home buyers to be treated as financial creditors, was passed in the Lok Sabha on Tuesday amid allegations from opposition parties that some changes were intended to “help just one industry”.
Finance Minister Piyush Goyal said the aim of the Insolvency and Bankruptcy Code (Second Amendment) Bill was to ensure that all cases are led to resolution instead of liquidation. He said the Insolvency Law Committee submitted its report on March 26 and every recommendation of the committee was accepted and brought into the amendment.
The Bill that seeks to replace an ordinance brought by the government earlier this year was introduced by Goyal on July 23. The Minister said the government brought the ordinance to expedite the resolution process.
“We wanted that the benefits (of committee recommendations) are quickly brought into the resolution process. I feel that the focus of the government should be on resolution, not liquidation. Liquidation should be our last option. And longer the delay in the process, greater are the chances of job loss,” Goyal said in his reply during the discussion on the Bill in the Lok Sabha.
He added the necessity to bring the ordinance was also to protect the interest of home buyers who would now be treated as financial creditors.
“It is the responsibility of the government to protect the interests of home buyers and that’s why it was important to bring the ordinance. However, all the provisions are prospective in nature, not retrospective. So there is no question of bringing it to benefit any particular individual or industry,” he said.
The Minister added that most cases of bad loans took place before 2014 and that the quantum of bad loans tripled between 2007 and 2014 due to ever-greening and restructuring of loans.
He said during the earlier governments, borrowers of big loans did not worry about paying back as an environment was created where they thought the responsibility lay with banks to recover the loans, not with them to pay back.
“We have changed that situation. Now, the loans are coming back to the banks,” he said.
He said the cost of resolution was very high during the earlier process, which has now been brought down.
“Earlier, the cost of recovery was nine per cent and it used to take seven to eight years. Even then the recovery process lingered on. Under the IBC, the cost of recovery has been reduced to below one per cent and the average recovery has been 55 per cent with 100 per cent recovery in some cases,” Goyal said.
–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
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.