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FEATURE
practitioners eco-system, the tribunals and the operating No word on funds for Punjab
guidelines over the next few months," Gupta said.
crop loan
The Bill was tabled in the Winter Session of Parliament
and was immediately sent to a joint committee. The Even though the sowing of cotton is over and paddy trans-
panel, headed by Rajya Sabha Member of Parliament plantation has begun, the Punjab Government is yet to
Bhupender Yadav, comprised 20 members of Lok Sabha receive funds from the National Bank for Agriculture and
and 10 from the Upper House. Rural Development (NABARD) to refinance the State Co-
operative Bank to give short-term crop loans to farmers
The panel suggested a number of changes, including pro- through its branches across the state.
visions for dealing with cross-border insolvency, an in-
crease in workers' outstanding dues, and providing a Normally, the Union Finance Ministry sanctions the re-
greater voice to operational creditors like employees and lease of funds in May. This year, there has been an inor-
suppliers of a bankrupt entity. dinate delay. The state government has not been inti-
mated as to when it will receive the funds.
Such suggestions, especially related to greater power to
employees, gain significance in the background of issues "As of now, our cooperative banks are giving loans by ar-
relating to the now-defunct Kingfisher Airlines, where ranging money from their own resources. There has been
many employees were badly affected. no word from NABARD as to when funds will be released
to refinance the State Cooperative Bank," said SK Batish,
The law also specifies penalties for offences committed Managing Director, Punjab State Cooperative Bank.
under corporate insolvency (such as concealing property). Chief Minister Parkash Singh Badal had recently taken
This penalty will be imprisonment up to five years, or a fine up the issue with Union Finance Minister Arun Jaitley. In
up to Rs 1 crore, or both. For most offences committed a letter, he had sought Rs 7,262 crore to be given as
under individual insolvency (such as providing false infor- short-term loans during the kharif season.
mation), the penalty will be imprisonment up to six
months, or a fine up to Rs 5 lakh, or both. Official sources said the Union Finance Ministry, which
had sanctioned funds to NABARD for the purpose, had
What's on offer? imposed a 20 per cent cut in the allocation of funds.
Law allows early identification of financial distress to South Canara District Central
help revive a company
Cooperative Bank registers
75% of creditors have to agree on a revival plan
profit of Rs 23.75 crore
Individuals to be given a chance of 'Fresh Start', where
outstanding debt will be written off South Canara District Central Cooperative (SCDCC) Bank
has achieved its highest ever profit of Rs 23.75 crore in
Allows for insolvency regulator; says regulatory pow- the last fiscal. Against this, the bank's profit in 2014-15
ers with govt till such body is set up was Rs 19.81 crore, Rs 18.28 crore in 2013-14, Rs 17.74
crore in 2012-13 and Rs 12.05 crore in 2011-12. The
Specifies penalties for offences committed under cor- bank achieved a total business turnover of Rs 5548.58
porate insolvency crore for the last fiscal against the target of Rs 5, 300
crore.
Penalty will be imprisonment up to five years, or a fine
up to Rs 1 crore, or both. Noting that the bank aims to achieve a turnover of Rs
6,300 crore in the current financial year, M N Rajendra
Debt Recovery Tribunal mooted as adjudicating au- Kumar, president of the bank told reporters that the
thority for individuals/ unlimited liability entities bank has achieved 100% repayment of agriculture loan
disbursed by it for 21-years in succession.
National Company Law Tribunal to be adjudicating
authority for companies/ limited liability entities.
(Source: Business Standard)
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