On January 2, 2018, Indian Parliament passed Insolvency and Bankruptcy Code (Amendment) Bill, 2017 as it was passed by Rajya Sabha. This amendment bill was passed by the Lok Sabha in December 2017. It replaces the ordinance that was promulgated in November 2017.
Some of the Key Provisions of Insolvency and Bankruptcy Code (Amendment) Bill, 2017:
- Undischarged insolvent, wilful defaulters and those whose accounts have been classified as non-performing assets have been declared as ineligible for being a resolution applicant.
- The provision not only restricts such persons to participate in the resolution or liquidation process, but also stipulates that Committee of Creditors (CoC) should ensure the viability and feasibility of the resolution plan before approving it.
- During liquidation process, property of a defaulter cannot be sold to such person who is ineligible to be a resolution applicant as per above stated parameters.
- Violations of the norms will attract fine ranging from Rs. 1 lakh to Rs. 2 crore.
Parliament passes bill to raise NABARD’s capital to Rs 30000 crore
On January 2, 2018, National Bank for Agriculture and Rural Development (Amendment) Bill, 2017, was passed in the Rajya Sabha by voice vote. This bill was passed by the Lok Sabha in August, 2017.
- The bill seeks to increase NABARD’s authorised capital to Rs 30000 crore from the current level of Rs. 5000 crore.
- Besides, Reserve Bank of India’s (RBI’s) 0.4 percent equity in NABARD will be transferred to Central Government. Consequentially, 100 percent equity of NABARD will now be with government.
Lok Sabha passes bill allowing construction within 100m radius of heritage monuments
On January 2, 2018, Lok Sabha passed the Ancient Monuments and Archaeological Sites and Remains (Amendment) Bill 2017 that permits government to take up infrastructure projects within the 100 metre prohibited area around protected monuments.
- Minister of State for Culture, Mahesh Sharma justified the bill by stating that the current rule of banning construction in the prohibited areas was adversely affecting various public works and is hampering developmental projects of the central government.
- In Ancient Monuments and Archaeological Sites and Remains Act, 1958,’prohibited area’ has been defined as land in the 100-metre radius around a protected monument.
- It is to be note that there are over 3600 such protected monuments and sites across India.