#IBC / Insolvency and Bankruptcy Code

[akgvgassociates]

Forensic Accounting: Enabling fraud detection

Forensic accounting aims to evaluate financial records and identify fraud using a combination of accounting, auditing, and investigation abilities. It involves applying accounting techniques to legal problems and disputes to provide evidence that can be used in legal proceedings. Forensic accountants are frequently requested to investigate financial fraud and give qualified testimony in court. Read More:  Forensic Accounting: Enabling fraud detection

[odnewsin]

Experts applaud IBC’s role in reviving stalled real estate projects

New Delhi: The Post Graduate Insolvency Programme (PGIP), Indian Institute of Corporate Affairs organised a conclave Wednesday at Manesar on the outskirts of the national capital, highlighting the success of the new Insolvency and Bankruptcy Code (IBC) in shaping the successful resolution of distressed assets in the real estate sector. The conclave featured discussions centred around the theme…

[rolaniskin]

How NPA Loan Takeover Helps Manage Bad Loans

The banking sector is the backbone of a nation's financial system. Banks provide essential services such as lending money to individuals, businesses, and governments, which fuels economic growth. However, a significant challenge that banks face is managing bad loans or Non-Performing Assets (NPAs). When borrowers fail to repay their loans on time, these loans become NPAs and can severely affect the financial health of the institution. One effective strategy banks use to manage NPAs is the NPA loan takeover. This method allows other financial institutions or specialized recovery firms to take over the responsibility of managing and recovering defaulted loans. In this article, we will explore how NPA loan takeovers help banks handle bad loans, mitigate risks, and restore financial stability.

Understanding NPAs and Their Impact Before diving into the role of NPA loan takeovers, it’s essential to understand what NPAs are and why they pose a problem. Non-Performing Assets (NPAs) are loans that have not been repaid for a certain period, typically 90 days or more. These loans stop generating income for the bank because interest payments and principal repayments are overdue.

The existence of NPAs in a bank’s portfolio is concerning for several reasons:

Financial Health: A large number of NPAs reduces a bank's profitability and liquidity. Banks depend on timely loan repayments to fund further lending activities. The longer the loan remains unpaid, the more strained the bank's financial position becomes. Regulatory Impact: Banks are required to classify and report NPAs, which can affect their capital adequacy ratio. A higher NPA ratio could lead to regulatory scrutiny and potential penalties. Reputation Risk: A rising level of NPAs signals poor loan management and could damage the bank’s reputation, making it harder to attract new customers or secure funding. To address these challenges, banks often turn to NPA loan takeovers as a strategy for minimizing losses.

What Is NPA Loan Takeover? NPA loan takeover is a process in which a bank or financial institution transfers the ownership or management of non-performing loans to another party. This third party may be another bank, a specialized asset reconstruction company (ARC), or a recovery firm. The purpose of the takeover is to reduce the burden of the bad loans on the original lender and improve recovery prospects.

In many cases, the third-party institution has the expertise, resources, and experience to handle distressed loans more effectively. The takeover allows the original lender to focus on its core business activities while the new entity works on resolving the bad loans. This process may involve renegotiating terms, restructuring the debt, or even taking legal action to recover the loan amount.

How NPA Loan Takeover Helps Manage Bad Loans Effective Recovery of Defaulted Loans One of the most significant advantages of NPA loan takeovers is the potential for more effective recovery of defaulted loans. The third-party institution involved in the takeover often has specialized knowledge of distressed assets and a deep understanding of the legal and regulatory framework governing bad loans. They are equipped with the necessary tools to engage in asset management and recovery processes, which the original bank might not be able to do as efficiently.

These recovery strategies include:

Debt Restructuring: The new institution can renegotiate loan terms with borrowers, such as reducing interest rates, extending repayment periods, or offering payment holidays, making it easier for the borrower to repay. Legal Action: In cases where the borrower refuses to cooperate, the third-party entity may take legal action to recover the dues. This could include filing lawsuits or initiating insolvency proceedings under applicable laws like the Insolvency and Bankruptcy Code (IBC) in India. Asset Sale: Sometimes, the third party may liquidate the collateral or assets pledged by the borrower to recover the loan amount. The proceeds from the sale can be used to clear the outstanding loan balance. Reducing the Financial Burden on Banks For banks, managing NPAs can be resource-intensive and costly. Maintaining a team to oversee bad loans, handling legal proceedings, and ensuring compliance with regulations can take up considerable time and effort. By opting for an NPA loan takeover, banks can offload this responsibility to another entity that specializes in such recoveries. This helps banks reduce operational costs and avoid additional financial strain.

In addition to saving resources, the takeover helps reduce the risk of further deterioration in asset quality. A well-executed loan takeover can ensure that the defaulted loan does not spiral out of control, potentially leading to higher losses for the bank.

Enhancing Liquidity and Financial Stability NPAs are a drain on liquidity, as they tie up capital that could otherwise be used for lending or other profitable activities. By transferring bad loans to a third party through a takeover, banks can free up liquidity, which can be reinvested in more productive areas. This not only restores the bank’s ability to lend to healthy borrowers but also improves its overall financial stability.

By eliminating or reducing the impact of NPAs, the bank can also regain investor confidence. Financial institutions with lower NPA ratios are more likely to attract new investments and maintain favorable credit ratings. In turn, this enables them to access cheaper funding in the future.

Regulatory Compliance and Capital Adequacy Banks are required to maintain certain capital adequacy ratios (CAR) as part of their regulatory obligations. High levels of NPAs can negatively impact a bank’s CAR, making it more difficult to meet regulatory requirements. By engaging in an NPA loan takeover, banks can reduce their NPA ratio, thereby improving their capital adequacy.

In many cases, when a takeover is successful, the bank can classify the loan as "recovered" or "resolved," which reduces the provisioning requirements for that particular loan. This helps the bank maintain its CAR and ensures compliance with regulations set by financial authorities like the Reserve Bank of India (RBI) or other regulatory bodies in different countries.

Improving Borrower Relationships When banks struggle to manage NPAs internally, relationships with borrowers can sour, especially if the bank resorts to aggressive recovery methods. Borrowers may become hostile or reluctant to cooperate with the bank, which could further complicate the recovery process.

By transferring the loan to a third party through a takeover, the bank can preserve its relationship with the borrower. The new entity might offer more flexible repayment options or better customer service, which can lead to a more amicable resolution of the loan. This approach may even help the borrower avoid defaulting on future loans, which benefits both the borrower and the bank in the long run.

Market and Asset Value Recovery In many cases, the value of the collateral securing a loan may diminish over time, especially when the borrower defaults for a prolonged period. The takeover process often involves asset reconstruction or liquidation, which can help recover some or all of the loan amount. If the third-party institution has a wider market reach, they may be able to sell the assets at a better price, improving the recovery process.

Conclusion NPA loan takeovers play a crucial role in managing bad loans and ensuring the overall stability of the banking system. By transferring the responsibility of handling defaulted loans to experienced third-party entities, banks can enhance recovery, reduce financial strain, improve liquidity, and ensure regulatory compliance. The process not only benefits the banks but also offers borrowers a chance to settle their debts through more flexible terms.

In an environment where bad loans continue to pose a risk to the banking sector, NPA loan takeovers are becoming an increasingly important tool for effective asset management and recovery. As financial markets evolve, banks will likely continue to rely on this method to minimize the impact of NPAs and maintain their financial health.

[lexcounsel456]

NCLT Lawyers| Lexcounsel

NCLT (National Company Law Tribunal) lawyers specialize in handling legal matters related to corporate and insolvency law within the framework of the Indian legal system. These lawyers represent clients in cases before the NCLT, which is responsible for resolving disputes related to company law, insolvency proceedings, mergers and acquisitions, corporate restructuring, and liquidation. With the increasing importance of the Insolvency and Bankruptcy Code (IBC), NCLT lawyers play a crucial role in guiding companies, creditors, and stakeholders through the complexities of corporate insolvency resolution, debt recovery, and the protection of interests in corporate restructuring.

Their expertise includes filing petitions for insolvency resolution, navigating the corporate liquidation process, and ensuring compliance with regulations under the Companies Act. NCLT lawyers also provide counsel on matters such as wrongful trading, directors' liabilities, and the protection of shareholder interests. By offering legal solutions tailored to the business environment, NCLT lawyers assist companies in managing financial distress, resolving disputes, and achieving favorable outcomes in the tribunal, ensuring that all parties involved comply with legal obligations and receive a fair hearing.

For more information contact us.

[ujaglobaladvisory]

The CIRP is mandatorily structured as a recovery mechanism, and this can be initiated by a financial creditor, an operational creditor, and a corporate debtor as well, wherein a corporate debtor can file an application of insolvency against itself if it foresees that its business is getting affected.

However, there were still many issues with the insolvency and bankruptcy laws, as they were insufficient and outdated. This triggered the need to have adequate legislation that could bring about a comprehensive reform and that could specifically regulate these aspects. The laws that were enacted are as follows:

Indian Insolvency Act, 1848

The Bankruptcy Act, 1869

The Indian Companies Act, 1913

The Companies Act, 1956

The Sick Industrial Companies (Special Provisions) Act, 1985 (SICA)

The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDBFI Act)

The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act)

The Companies (Amendment) Act, 2013

The Insolvency and Bankruptcy Code, 2016 (IBC)

Want to know more insights about CIRP, visit here- Navigating the Corporate Insolvency Resolution Under IBC..

[samiksha30]

How NPA Consultants Can Guide You Through Complex Corporate Restructuring

Corporate restructuring is a critical process for businesses facing financial or operational challenges. It involves reorganization of a company's financial and operational structure to restore profitability, enhance efficiency, and ensure long-term sustainability. However, navigating this process is far from straightforward, requiring a blend of financial acumen, operational insight, and legal expertise. This is where the role of NPA Consultants becomes indispensable.

At NPA Consultants, we specialize in guiding businesses through the complexities of corporate restructuring. Backed by a team of seasoned professionals from the fields of law, finance, and banking, and under the mentorship of Dr. Visswas, we provide comprehensive solutions tailored to the unique needs of our clients. Here’s how we can assist you:

1. Debt Restructuring Expertise

Debt restructuring is often at the core of corporate turnaround strategies. Our services include:

Depth Analysis and Financial Health Assessment: We conduct a detailed analysis of your company's financial situation to identify the most viable restructuring strategies and determine the best course of action, ensuring that the restructuring process is both effective and sustainable.

Negotiation with Creditors and Vendors: Reaching a consensus that benefits all parties requires experience, expertise, and the ability to develop a well -structured plan. Our team excels at creating such plans, always keeping the company’s long-term viability and profitability in mind.

Tailored Solutions: Every company is unique, and Our solutions are designed specifically for the client’s industry, financial structure, and market conditions. We know that a one-size-fits-all solution is rarely effective, especially in today’s dynamic and complex economic environment.

2. Corporate Revitalization through One-Time Settlements (OTS)

For businesses struggling with non-performing assets (NPAs), a well-structured OTS can be a game-changer. We offer:

Legal Framework Tools: We create tools to strengthen your bargaining position during negotiations with financial institutions and banks.

Execution of OTS Plans: Our team structures and executes mutually beneficial OTS deals, saving you time, energy, and resources compared to prolonged litigation.

Economic Downturn Strategies: During periods of economic stress, banks may be more amenable to OTS offers. We leverage such opportunities to your advantage.

3. Private Equity and Growth Capital

Corporate restructuring often requires fresh capital to fund operational changes or strategic investments. Our private equity services include:

Capital Sourcing: We facilitate growth capital through partnerships with private equity firms and finding the right partners who not only bring in growth capital but also provide significant value addition in the scaling up of the process.

Specialized Services for NPAs: With extensive global networks, we provide customized solutions for businesses grappling with NPAs.

4. Legal and Compliance Support

Legal challenges can significantly complicate the restructuring process. Our legal experts provide:

SARFAESI Act Assistance: We help safeguard mortgaged assets and address legal objections.

Support for Recovery Under RDDBFI Act' 1993: Our team handles recovery matters through the Debt Recovery Tribunal (DRT) and Appellate Tribunal (DRAT).

Insolvency and Bankruptcy Guidance: We assist with cases under the Insolvency and Bankruptcy Code (IBC), ensuring efficient resolution and revival of your business.

Why Choose NPA Consultants?

Comprehensive Expertise: Our multidisciplinary team brings together professionals from law, finance, and banking to deliver holistic solutions.

Proven Track Record: With years of experience and a deep understanding of the challenges businesses face, we’ve successfully guided numerous companies through restructuring processes.

Tailored Solutions: We understand that no two businesses are alike. Our solutions are customized to meet your unique requirements.

Efficient Execution: We focus on achieving results swiftly and efficiently, minimizing disruptions to your business operations.

Transform Challenges into Opportunities

Corporate restructuring can be a daunting prospect, but with the right guidance, it’s an opportunity to transform your business and lay the foundation for sustained growth. At NPA Consultants, we are committed to helping you navigate these challenges with confidence and clarity.

Visit www.npaconsultant.in to learn more about our services and how we can assist you in your corporate restructuring journey. Let’s work together to redefine your business’s future.

For more information or to request a consultation, visit the NPA Consultants website: https://www.npaconsultant.in/

To stay updated with the latest posts, follow us on social media:

📸  Instagram - https://www.instagram.com/npaconsultants/

📘  Facebook - https://www.facebook.com/npaconsultant 

🐦 Twitter (X) - https://x.com/npaconsultant

🔗 Linkedin - https://www.linkedin.com/company/npa-consultant-pvt/ 

▶️ Youtube - https://www.youtube.com/@drvpfinworld

Contact:  NPA Consultants Pvt Ltd +91 9892855900 / +91 89282 89070 https://www.npaconsultant.in/

Digital Partner:

TVM INFO SOLUTIONS PVT LTD 

Contact: TVM Info Solutions Pvt. Ltd. 

+91- 90045 90039 

Follow us on Social Media 

 🌐 Website - https://tvminfo.com/

📸 Instagram - https://www.instagram.com/tvm_infosolution/

📘 Facebook - https://www.facebook.com/people/Tvm-Info-Solutions-Pvt-Ltd/61555896761755/

🔗 Linkedin - https://in.linkedin.com/company/tvminfo

▶️ Youtube - https://www.youtube.com/@tvminfosolutions

[ds14blogs]

Top 10 Benefits of Startup India Registration You Must Know

Introduction

There are several obstacles to overcome while starting a business in India, such as limited funds, legal restrictions, and fierce rivalry in the market. Nonetheless, the Government of India's Startup India Registration program provides budding companies with a wealth of assistance. Startups can get government funding, simplified compliance procedures, and tax benefits by registering as DPIITs. DPIIT Recognition offers companies a number of benefits that support their expansion and long-term viability in a cutthroat industry. The top ten advantages of Startup India Registration will be discussed in this article, along with how it may help business owners grow their companies effectively.

1. Tax Exemptions and Financial Relief

The tax exemptions provided to startups are among the most important advantages of DPIIT Recognition. Startups registered with DPIIT are eligible for a three-year period of 100% income tax exemption under Section 80-IAC of the Income Tax Act. Startups can use this exemption to reinvest their savings in growing their businesses. Furthermore, Section 56(2)(vie) exempts businesses registered with the DPIIT from Angel Tax, which facilitates the process of obtaining capital from angel investors.

2. Access to Government Funding and Grants

The Startup India Registration program provides funding support through schemes such as:

Startup India Seed Fund Scheme (SISFS): Offers early-stage funding to eligible startups.

Fund of Funds for Startups (FFS): A government-backed initiative that facilitates venture capital investment in startups.

By securing DPIIT Registration, startups can tap into these financial resources, reducing the burden of securing capital through traditional loans.

3. Self-Certification for Compliance

Startups that are registered with DPIIT are able to self-certify under a number of labor and environmental laws, which guarantee compliance and lowers administrative barriers. This advantage makes navigating legal frameworks easier by allowing businesses to concentrate on operations rather than regulatory filings.

4. Intellectual Property (IP) Benefits

Protecting intellectual property is critical for startups, and DPIIT Recognition offers numerous benefits, such as:

80% rebate on patent filing fees.

50% discount on trademark registration costs.

Fast-track examination of patents, allowing startups to secure their innovations quickly.

These benefits encourage startups to protect their unique products, services, and innovations without excessive financial burden.

5. Easier Access to Public Procurement

High turnover limits and prior experience are frequently required for government tenders. Startups that are DPIIT-registered, however, are not subject to these restrictions, allowing them to submit bids for government contracts without having to meet minimum turnover requirements or past experience. For software startups and service-based businesses in particular, this opens up a world of business options.

6. Faster Exit Process for Startups

According to the Insolvency and Bankruptcy Code (IBC), DPIIT Recognition allows startups to shut down their operations within ninety days. Without having to deal with drawn-out liquidation procedures, this quicker exit process reduces legal and financial issues and frees up businesses to concentrate on new prospects.

7. Networking, Incubation, and Industry Connects

Startup summits, mentorship programs, and other national and international networking events are all accessible to startups that have registered with DPIIT. These gatherings facilitate business growth and strategic alliances by exposing attendees to investors, industry experts, and prospective customers.

Some of the prominent networking programs include:

Startup India Showcase – A platform to highlight innovative startups.

Startup India Hub – A networking portal connecting startups with mentors and investors.

8. Simplified Business Licensing and Registration Processes

Startups designated by DPIIT get expedited approvals for regulatory permits, environmental clearances, and commercial licenses. Startups may concentrate on growing their companies rather than enduring drawn-out bureaucratic processes thanks to this expedited method, which saves time and money.

9. Preferential Bank Loans and Credit Support

Under the Credit Guarantee Scheme for firms (CGSS), banks and other financial institutions provide DPIIT-registered firms with loans without collateral. This program lowers financial risks for early-stage business owners by assisting companies in obtaining funding without requiring significant assets as collateral. Additionally, SIDBI (Small Industries Development Bank of India) and other government-backed financial institutions offer low-interest loans to firms that are registered with DPIIT.

10. International Market Expansion and Investment Opportunities

Startups can attend international trade shows, investment summits, and business delegations with DPIIT Recognition. The government helps businesses explore global markets and draw in foreign investors by facilitating cross-border cooperation and exposure. Soft landing programs, which offer workspace support and coaching in international markets, are also available to DPIIT-registered firms. These programs enable Indian startups to expand globally with little risk.

Conclusion

For companies trying to make a name for themselves in India's cutthroat market, Startup India Registration is revolutionary. Beyond tax breaks and financial assistance, DPIIT registration offers easier compliance, access to government procurement, and improved intellectual property protection. Securing DPIIT Recognition is a critical step for entrepreneurs who want to develop their businesses effectively. Startups can lessen their financial obligations, establish their trustworthiness, and obtain growth-oriented resources that help them stand out in the market by utilizing these benefits. If you haven't filed for firm India Registration yet, this is the perfect moment to do so in order to get the special advantages that will help your firm succeed.

[newsxbyte]

Economic Survey 2025: IBC nudging companies to resolve their distress early

The Economic Survey 2024-25 lavished praise on the Insolvency and Bankruptcy Code (IBC) for transforming the behaviour of distressed companies, highlighting that the law has acted as a deterrent, encouraging many firms to resolve their financial distress early in order to avoid the consequences of a resolution process. The survey notes, “Thousands of debtors are resolving distress in the early…

[trend932455660]

Best DRT Lawyers in Bangalore

Debt recovery can be a complex and time-consuming legal challenge. Whether you’re a bank, financial institution, or an individual creditor, securing the right legal representation is crucial for effective debt recovery. Bangalore, being a financial hub, has a competitive legal landscape with experienced Debt Recovery Tribunal (DRT) lawyers. Among the top firms, HNCK AND ASSOCIATES stands out for its expertise, dedication, and success rate in handling debt recovery cases.

Understanding DRT and Its Importance

Debt Recovery Tribunals (DRTs) were established under the Recovery of Debts and Bankruptcy Act, 1993 to facilitate speedy resolution of debt-related disputes. Their primary role is to assist banks and financial institutions in recovering non-performing assets (NPAs) efficiently.

Why Do You Need a DRT Lawyer?

Navigating DRT cases requires legal expertise and a strategic approach. A skilled DRT lawyer can: ✔ Ensure compliance with legal procedures ✔ Represent clients before DRT and DRAT (Debt Recovery Appellate Tribunal) ✔ Expedite the recovery process ✔ Handle disputes and settlements professionally

Having the right legal team can significantly impact the outcome of your case.

Key Qualities of the Best DRT Lawyers in Bangalore

When selecting a DRT lawyer, consider the following qualities:

1. Expertise in Debt Recovery Laws

The best DRT lawyers in Bangalore specialize in handling cases under the SARFAESI Act, 2002, Insolvency and Bankruptcy Code (IBC), 2016, and Recovery of Debts and Bankruptcy Act, 1993. Their expertise ensures a strong legal strategy for clients.

2. Experience in Handling Financial Disputes

DRT cases involve complex financial transactions. A lawyer with extensive experience in handling financial disputes can analyze cases meticulously and present strong arguments in court.

3. Negotiation and Settlement Skills

A skilled DRT lawyer should be able to negotiate settlements, reducing litigation time and costs. Experienced lawyers often mediate disputes and secure out-of-court settlements.

4. Strong Litigation and Representation Abilities

Court representation plays a crucial role in debt recovery cases. The best DRT lawyers have a deep understanding of procedural laws and can present compelling arguments before the tribunal.

5. Client-Centric Approach

Top DRT lawyers prioritize their clients’ interests, ensuring transparent communication, regular case updates, and effective legal strategies.

Top DRT Law Firm in Bangalore — HNCK AND ASSOCIATES

Among the leading legal firms in Bangalore, HNCK AND ASSOCIATES has earned a reputation for excellence in debt recovery litigation. The firm’s success is built on experience, expertise, and a client-first approach.

Why Choose HNCK AND ASSOCIATES?

✔ Proven Track Record — The firm has successfully handled multiple high-value debt recovery cases. ✔ Expert Legal Team — A team of highly skilled DRT lawyers specializes in SARFAESI, IBC, and banking litigation. ✔ Client-Centric Services — Tailored legal solutions to meet individual client needs. ✔ Efficient Recovery Process — The firm ensures fast-track debt recovery through expert legal representation.

With HNCK AND ASSOCIATES, clients receive comprehensive legal support, ensuring favorable case outcomes.

Types of Debt Recovery Cases Handled by HNCK AND ASSOCIATES

1. Bank Loan Default Cases

Banks and financial institutions rely on HNCK AND ASSOCIATES for legal support in recovering loan defaults. The firm ensures compliance with DRT proceedings, enforcing legal claims effectively.

2. Corporate Debt Recovery

Corporate entities often face payment defaults. The firm assists businesses in recovering outstanding debts through litigation or settlements.

3. SARFAESI Act Cases

The SARFAESI Act empowers banks to recover secured debts without court intervention. HNCK AND ASSOCIATES ensures smooth enforcement of this act, protecting clients’ financial interests.

4. Personal Loan and Credit Card Defaults

Individuals defaulting on loans or credit card payments may face legal consequences. The firm’s lawyers assist banks in recovering personal loan debts through legal procedures.

5. Insolvency and Bankruptcy Cases

Debt-related disputes under the IBC, 2016 require specialized legal expertise. The firm represents creditors in NCLT (National Company Law Tribunal) and DRT proceedings.

6. Cheque Bounce Cases Under NI Act

Under the Negotiable Instruments Act, 1881, dishonored cheques lead to legal actions. HNCK AND ASSOCIATES provides effective legal solutions for recovering amounts through legal proceedings.

7. Mortgage and Property-Related Debt Recovery

Property-related loan defaults require a strategic approach. The firm assists in mortgage enforcement, ensuring compliance with legal regulations.

The DRT Legal Process — Step by Step

Understanding the DRT legal process can help clients navigate their cases efficiently.

Step 1: Filing an Application

Banks, financial institutions, or creditors file an application before the Debt Recovery Tribunal for claims exceeding ₹20 lakh.

Step 2: Tribunal Proceedings

Once filed, the tribunal reviews the case and issues notices to the debtor. Both parties present their arguments before the court.

Step 3: Recovery Certificate Issuance

If the claim is justified, the tribunal issues a Recovery Certificate, authorizing the creditor to recover dues through legal means.

Step 4: Enforcement of Tribunal Orders

The creditor can enforce the tribunal’s orders through attachment of assets, auction sales, or other legal mechanisms.

Having an expert DRT lawyer ensures a smooth and successful recovery process.

Frequently Asked Questions About DRT Lawyers in Bangalore

1. How can I file a case in DRT?

You need to file an application with supporting documents before the tribunal. HNCK AND ASSOCIATES can assist with document preparation and case filing.

2. What is the minimum debt amount for DRT cases?

DRT handles cases involving debts of ₹20 lakh or more. Smaller amounts fall under civil courts.

3. How long does a DRT case take?

The timeline varies based on case complexity. With expert legal representation, cases can be resolved efficiently.

4. Can an individual file a case in DRT?

No, only banks and financial institutions can directly approach DRT. However, individuals can seek legal remedies under other laws.

5. What is the role of DRAT?

The Debt Recovery Appellate Tribunal (DRAT) hears appeals against DRT orders. HNCK AND ASSOCIATES also represents clients in DRAT cases.

Final Thoughts — Choose the Best DRT Lawyers in Bangalore

Debt recovery cases require strong legal expertise, strategic planning, and efficient execution. Choosing the right DRT lawyer can make a significant difference in case outcomes.

HNCK AND ASSOCIATES is a trusted name in Bangalore for debt recovery litigation. The firm’s expert legal team, proven success rate, and client-focused approach make it the best choice for handling DRT cases.

If you’re looking for the best DRT lawyers in Bangalore, contact HNCK AND ASSOCIATES today for expert legal assistance!

📞 Contact HNCK AND ASSOCIATES Now for Professional Legal Support!

[once-in-a-blue-moon2021]

The DHFL Scam: An Absence That Exists

Posted on 28th January, 2025 (GMT 10:02 hrs) Despite the CBI’s recent 2025 clean chit to the Wadhawan brothers, the real victims of this saga—the FD and NCD holders—continue to endure their own “capital punishment.” The Insolvency and Bankruptcy Code (IBC) 2016, an ill-conceived, costly mechanism, punished not just the debtors but also the stakeholders, turning justice into an elusive…

[felixadvisory]

IBC Services: A Guide to Insolvency and Bankruptcy Solutions

Insolvency and Bankruptcy Code (IBC) services have become a lifeline for businesses in distress. Felix Advisory offers comprehensive IBC services to help organizations manage insolvency and restructuring efficiently.

[news365timesindia]

[ad_1] Paromita Das GG News Bureau New Delhi, 28th Dec. A Reversal of Opinions: Raghuram Rajan, the former Governor of the Reserve Bank of India (RBI), has been a vocal critic of the Modi government during his tenure at the central bank. His frequent disagreements with the government, particularly over monetary policies and handling of the economy, earned him the tag of being a “darling of the opposition.” However, in a surprising turn of events, Rajan recently lauded the Modi administration for its effective management of Non-Performing Assets (NPAs), a key challenge for the Bharatiya banking system. This unexpected praise comes after years of sharp criticisms and is worthy of scrutiny, considering Rajan’s pivotal role in the banking reforms during his tenure at RBI. Understanding the NPA Crisis: The Historical Context: To comprehend the significance of Rajan’s recent remarks, it is essential to revisit the context of Bharat’s NPA crisis. NPAs are loans that have gone unpaid for an extended period, and their rise in the Bharatiya banking system has been a long-standing issue, primarily beginning after the global financial crisis of 2008. Rajan noted that projects funded by banks before the crisis started facing significant setbacks post-2008 due to factors such as corruption, delays in permits, and mismanagement. These factors caused a steep rise in NPAs, especially in public sector banks. Rajan’s 2015 Asset Quality Review (AQR) was a watershed moment in addressing this crisis. The AQR helped to clean up the balance sheets of banks by ensuring that bad loans were promptly identified, with the necessary provisioning made. According to Rajan, this was crucial for alleviating the growing financial insecurity surrounding public sector banks. He recalled how he took his proposal for an AQR and the end of the moratorium on bad loans to Arun Jaitley, the then Finance Minister, who approved it without hesitation. This marked a turning point in the fight against NPAs. The Modi Government’s Response, A Shift in NPA Management: Rajan’s praise for the Modi government’s handling of NPAs aligns with recent updates from Finance Minister Nirmala Sitharaman. According to her, between 2014 and 2023, the government’s initiatives helped recover more than ₹10 lakh crores from bad loans. The gross NPA ratio fell to a 12-year low of 2.8 percent by the end of the fiscal year 2024. These figures are a direct reflection of the government’s ongoing efforts to manage bad loans and prevent further escalation of the NPA crisis. Rajan acknowledges that the implementation of AQR was a pivotal step. However, the Modi government’s broader policy initiatives played a crucial role in reducing NPAs over time. One of the most significant steps was the introduction of the Insolvency and Bankruptcy Code (IBC) in 2016. This law gave authorities the power to take control of defaulting companies from their promoters, thereby protecting the interests of creditors. Additionally, wilful defaulters were barred from participating in the resolution process, ensuring that there would be greater accountability. Additional Measures to Tackle NPAs: Alongside the IBC, the government took several other steps to address the NPA issue. One such measure was the amendment to the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act (SARFAESI Act) of 2002, allowing banks to auction the assets of defaulters. This was complemented by the establishment of the National Asset Reconstruction Company Limited (NARCL) to resolve stressed assets over ₹500 crore. The government also provided a ₹30,600 crore guarantee to back NARCL’s receipts, further enhancing the efficiency of the recovery process. Public sector banks were also restructured through the establishment of Stressed Asset Management Verticals, such as the one in the State Bank of India (SBI), to manage and recover loans more effectively. These verticals allowed banks to monitor loans more closely, ensuring that any potential defaults were caught early.

Moreover, the RBI implemented a system of Early Warning Signals (EWS) to trigger timely remedial actions for loans at risk of default. A Positive Outlook: Rajan’s Acknowledgment: Raghuram Rajan’s acknowledgment of the Modi government’s success in reducing NPAs is notable, especially considering his earlier critiques. He conceded that the government’s approach, including the AQR, the IBC, and other reforms, helped set the stage for the reduction in bad loans. As he put it, “Eventually the situation is back on track,” signifying a recovery after years of financial distress. Rajan’s perspective carries weight given his experience and expertise in managing the Bharatiya economy, and his remarks add credibility to the government’s claims of progress. Conclusion: The Long Road Ahead: While the reduction in NPAs under the Modi government is a significant achievement, experts agree that the work is far from over. The underlying issues that contribute to the creation of bad loans—such as poor project planning, delays in clearances, and systemic corruption—continue to be challenges for Bharat’s banking sector. Therefore, while Rajan’s praise is deserved, it also highlights the complexity of tackling NPAs and the need for continued vigilance. The government’s strategy of combining regulatory reforms, legal frameworks, and institutional restructuring has certainly yielded results. Yet, with Bharat’s banking sector still grappling with certain vulnerabilities, it is essential to keep refining these measures. Raghuram Rajan’s shift in stance reflects a recognition of these efforts, providing a balanced view of the Modi government’s handling of one of the most significant financial challenges in Bharat’s economic history.   The post Raghuram Rajan’s Remark on Modi Government’s NPA Management: A Shift in Perspective appeared first on Global Governance News- Asia's First Bilingual News portal for Global News and Updates. [ad_2] Source link

[news365times]

[ad_1] Paromita Das GG News Bureau New Delhi, 28th Dec. A Reversal of Opinions: Raghuram Rajan, the former Governor of the Reserve Bank of India (RBI), has been a vocal critic of the Modi government during his tenure at the central bank. His frequent disagreements with the government, particularly over monetary policies and handling of the economy, earned him the tag of being a “darling of the opposition.” However, in a surprising turn of events, Rajan recently lauded the Modi administration for its effective management of Non-Performing Assets (NPAs), a key challenge for the Bharatiya banking system. This unexpected praise comes after years of sharp criticisms and is worthy of scrutiny, considering Rajan’s pivotal role in the banking reforms during his tenure at RBI. Understanding the NPA Crisis: The Historical Context: To comprehend the significance of Rajan’s recent remarks, it is essential to revisit the context of Bharat’s NPA crisis. NPAs are loans that have gone unpaid for an extended period, and their rise in the Bharatiya banking system has been a long-standing issue, primarily beginning after the global financial crisis of 2008. Rajan noted that projects funded by banks before the crisis started facing significant setbacks post-2008 due to factors such as corruption, delays in permits, and mismanagement. These factors caused a steep rise in NPAs, especially in public sector banks. Rajan’s 2015 Asset Quality Review (AQR) was a watershed moment in addressing this crisis. The AQR helped to clean up the balance sheets of banks by ensuring that bad loans were promptly identified, with the necessary provisioning made. According to Rajan, this was crucial for alleviating the growing financial insecurity surrounding public sector banks. He recalled how he took his proposal for an AQR and the end of the moratorium on bad loans to Arun Jaitley, the then Finance Minister, who approved it without hesitation. This marked a turning point in the fight against NPAs. The Modi Government’s Response, A Shift in NPA Management: Rajan’s praise for the Modi government’s handling of NPAs aligns with recent updates from Finance Minister Nirmala Sitharaman. According to her, between 2014 and 2023, the government’s initiatives helped recover more than ₹10 lakh crores from bad loans. The gross NPA ratio fell to a 12-year low of 2.8 percent by the end of the fiscal year 2024. These figures are a direct reflection of the government’s ongoing efforts to manage bad loans and prevent further escalation of the NPA crisis. Rajan acknowledges that the implementation of AQR was a pivotal step. However, the Modi government’s broader policy initiatives played a crucial role in reducing NPAs over time. One of the most significant steps was the introduction of the Insolvency and Bankruptcy Code (IBC) in 2016. This law gave authorities the power to take control of defaulting companies from their promoters, thereby protecting the interests of creditors. Additionally, wilful defaulters were barred from participating in the resolution process, ensuring that there would be greater accountability. Additional Measures to Tackle NPAs: Alongside the IBC, the government took several other steps to address the NPA issue. One such measure was the amendment to the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act (SARFAESI Act) of 2002, allowing banks to auction the assets of defaulters. This was complemented by the establishment of the National Asset Reconstruction Company Limited (NARCL) to resolve stressed assets over ₹500 crore. The government also provided a ₹30,600 crore guarantee to back NARCL’s receipts, further enhancing the efficiency of the recovery process. Public sector banks were also restructured through the establishment of Stressed Asset Management Verticals, such as the one in the State Bank of India (SBI), to manage and recover loans more effectively. These verticals allowed banks to monitor loans more closely, ensuring that any potential defaults were caught early.

Moreover, the RBI implemented a system of Early Warning Signals (EWS) to trigger timely remedial actions for loans at risk of default. A Positive Outlook: Rajan’s Acknowledgment: Raghuram Rajan’s acknowledgment of the Modi government’s success in reducing NPAs is notable, especially considering his earlier critiques. He conceded that the government’s approach, including the AQR, the IBC, and other reforms, helped set the stage for the reduction in bad loans. As he put it, “Eventually the situation is back on track,” signifying a recovery after years of financial distress. Rajan’s perspective carries weight given his experience and expertise in managing the Bharatiya economy, and his remarks add credibility to the government’s claims of progress. Conclusion: The Long Road Ahead: While the reduction in NPAs under the Modi government is a significant achievement, experts agree that the work is far from over. The underlying issues that contribute to the creation of bad loans—such as poor project planning, delays in clearances, and systemic corruption—continue to be challenges for Bharat’s banking sector. Therefore, while Rajan’s praise is deserved, it also highlights the complexity of tackling NPAs and the need for continued vigilance. The government’s strategy of combining regulatory reforms, legal frameworks, and institutional restructuring has certainly yielded results. Yet, with Bharat’s banking sector still grappling with certain vulnerabilities, it is essential to keep refining these measures. Raghuram Rajan’s shift in stance reflects a recognition of these efforts, providing a balanced view of the Modi government’s handling of one of the most significant financial challenges in Bharat’s economic history.   The post Raghuram Rajan’s Remark on Modi Government’s NPA Management: A Shift in Perspective appeared first on Global Governance News- Asia's First Bilingual News portal for Global News and Updates. [ad_2] Source link

[arjasrikanth]

Over the past decade, India’s public sector banks *(PSBs)* have transformed from institutions burdened by *non-performing assets (NPAs)* into pillars of *financial stability.*

This recovery was driven by strategic interventions, including the Asset Quality Review *(AQR)* of 2015, which exposed systemic inefficiencies.

The government’s *four-pronged* strategy—Recognition, Resolution, Recapitalization, and Reform—ushered in landmark initiatives like the Insolvency and Bankruptcy Code *(IBC)* and the Enhanced Access and Service Excellence *(EASE)* framework.

These measures improved asset recovery, professionalized governance, and enhanced operational resilience.

With NPAs reduced *from 14.6% in FY18 to 5.2% in FY23* , PSBs now face new challenges in *unsecured retail lending* .

Balancing growth and risk management remains key to sustaining their *vital role in India’s economy.*

http://arjasrikanth.in/2024/12/20/banks-from-breakdowns-to-breakthroughs-in-indias-financial-saga/

[mksinghlegal]

Current Changes in Corporate Law in India

Corporate law in India has undergone significant reforms in recent years to align with global standards, improve ease of doing business, and ensure corporate accountability. These amendments are designed to streamline governance, promote transparency, and foster investor confidence.

Key Updates in Corporate Law:

Decriminalization of Minor Offenses The Companies (Amendment) Act, 2020 decriminalized many minor, technical, and procedural violations. The shift from criminal penalties to civil penalties aims to reduce unnecessary litigation and ease compliance burdens on businesses.

Corporate Social Responsibility (CSR) New CSR rules mandate stricter compliance, such as disclosing unspent CSR funds and adhering to impact assessments for large projects. Companies now need to ensure funds are allocated responsibly, reinforcing their commitment to social development.

Ease of Doing Business Initiatives like the Simplified Proforma for Incorporating Company Electronically (SPICe+) and online filings have made company registration seamless. Digital compliance tools such as e-adjudication and web-based regulatory filings enhance efficiency and accessibility.

Insolvency and Bankruptcy Code (IBC) Updates Recent amendments to the IBC focus on faster resolution processes and protection of creditors' rights. Pre-packaged insolvency resolution for MSMEs was introduced to safeguard smaller businesses while ensuring their recovery.

Data Privacy and SEBI Regulations Regulatory bodies like SEBI have tightened corporate governance norms for listed entities, while India’s upcoming Data Protection Act will have significant implications for companies handling sensitive data.

These changes reflect the government’s efforts to create a robust legal framework that supports business growth while maintaining accountability and transparency.

For expert legal consultation on corporate compliance, governance, or litigation, trust M K Singh Legal Services.

For legal consultation or assistance, connect with M K Singh Legal Services:

🌐 www.metrolegalexperts.in

📧 mksingh@metrolegalexperts.in

📞 +91 9811432933

📱 Social Media:

Facebook

Instagram

YouTube

LinkedIn

Twitter

Stay updated with M K Singh Legal Services for all your legal needs !