May 16, 2017
Dear Friends, “The Insolvency and Bankruptcy Code, the National Company Law Tribunal, a new arbitration framework and a new IPR regime are all in place. New commercial courts have also been set up. These are just a few examples of the direction in which we are going. My Government is strongly committed to continue the reform of the Indian economy.” - Hon’ble Prime Minister, Shri Narendra Modi at the inauguration of the Vibrant Gujarat Global Summit, 2017 on 10th January, 2017” The government seems to be walking the talk. In the recent past, we have witnessed various initiatives and reforms undertaken by the NDA government to keep up to its commitments. The biggest challenge being faced to achieve the results of any initiative, was the lack of commitment at the top and the co-ordination among various departments concerned. This requirement seems to have been fairly understood by the Government and adequate steps are being taken to remove this bottleneck. We are witnessing committed efforts by the union government to reduce the gap in interdepartmental co-ordination. Few of the following initiatives will vouch for this:
- Ordinance was issued to amend the Banking Regulations Act to authorise the Central Government to given direction to Reserve Bank of India to initiate Insolvency process under newly enacted Insolvency and Bankruptcy Code, 2016. This ordinance will act as an enabler and mandate the banks suffering from stressed assets to resort to IBC.
- Immediately Central Government authorised Reserve Bank of India by way of notification to issue necessary directions as it may think fit to the banks suffering from Stressed Assets to initiate Insolvency Resolution process under IBC
- To combat the Black Money, as a part of Operation Black Money- 2, Registrar of Companies issued notices close to over 2 lakhs companies who have not filed their financial statements. It was believed that many of these companies are used as a vehicle to create money laundering activities;
- To reduce the use of paper -currency and encourage e-currency, availability of cash at ATMs has been reduced considerably and cash transactions beyond certain amounts are penalised.
- Towards legislative reforms RERA & IBC have been notified within the record time
- Few appellate Tribunals are consolidated for optimum utilisation
- Economy & Stock Market:
- NCLT & NCLAT
- Insolvency & Bankruptcy
- Bahubali 2 – The Conclusion