India - Banking & Finance Snapshot.

Legal News & Analysis - Asia Pacific - India - Banking & Finance

20 January, 2020

 

  • Lending by Banks to InvITs

    Previously, banks were only expressly permitted to participate / invest in units issued by InvITs, subject to certain conditions prescribed by RBI. By way of notification dated October 14, 2019 titled ‘Lending by banks to InvITs’ (‘InvITsNotification’), the RBI has now permitted banks to provide credit facilities...

 

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  • Acquisition by Asset Reconstruction Companies from Sponsors and Lenders

    RBI has, by way of circular dated December 6, 2019, stipulated that asset reconstruction companies (‘ARCs’) cannot acquire financial assets from the following, on a bilateral basis, irrespective of the consideration: (i) a bank/financial institution which is the sponsor of the ARC...

 

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  • Withdrawal of Exemptions Granted to Housing Finance Institutions

    RBI, by way of circular dated November 11, 2019, withdrew the exemptions available to housing finance institutions, as defined under Section 2(d) of the National Housing Bank Act, 1987 (‘HFIs’), from the provisions of Chapter IIIB of Reserve Bank of India Act, 1934 (‘RBI Act’)...

 

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  • SC holds that Equitable Treatment to be accorded to a Creditor during IBC Process is dependent on the Class to which the Creditor belongs

    The key decisions and observations made by SC, in Committee of Creditors of Essar Steel India Limited v. Satish Kumar Gupta on various issues under the Insolvency and Bankruptcy Code, 2016 (‘IBC’) are: (i) Equitable treatment has to be given to all the creditors who are similarly situated...

 

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  • High Court entitled to Entertain a Writ Petition under Articles 226/ 227 of the Constitution of India against Orders passed by an NCLT for Public Law Matters

    SC in M/s Embassy Property Developments Pvt. Ltd. v. State of Karnataka & Ors. dealt with the issue of whether High Courts ought to interfere under Articles 226/227 of the Constitution of India, with an order passed by the NCLT, Chennai Bench, in a proceeding under the IBC, ignoring the availability of a statutory remedy of appeal to the NCLAT and if so, under what circumstances...

 

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  • SC Rules on Applicability of the Overriding Effect of IBC on Third Party Assets

    In Municipal Corporation of Greater Mumbai v. Abhilash Lal & Ors., the Supreme Court (‘SC’) was considering the challenge of the Municipal Corporation of Greater Mumbai (‘MCGM’) to a resolution plan approved for Sevenhills Healthcare Private Limited (‘Corporate Debtor’)...

 

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For further information, please contact:

 

Zia Mody, Partner, AZB & Partners

zia.mody@azbpartners.com