Govt to amend bankruptcy law to protect new owners of insolvent firms : Bulletin: Business Today
Business Today

Govt to amend bankruptcy law to protect new owners of insolvent firms

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December 9, 2019

Govt set to amend bankruptcy law to protect new owners of insolvent companies
The government has begun the process of amending the insolvency and bankruptcy code to protect new owners of bankrupt companies from any criminal accountability concerning the time when the firms were controlled by the erstwhile promoters. The cabinet is expected to approve significant changes to the insolvency law at the earliest to safeguard the companies taking over the broke businesses from prosecution for financial crimes by the outgoing promoters. This will bring much-needed confidence to buyers of distressed assets.

Your take-home salary may increase; big change likely in EPFO rules
The government is looking into the option of reducing the provident fund contribution of employees and increasing the take-home amount. The provident fund component is currently 12 per cent of the basic salary. This provision is part of the Social Security Code Bill, 2019 that has been approved by the Cabinet and is expected to be tabled in the Parliament this week. The rationale for reducing the PF contribution is that a higher take-home salary would boost consumption.

Bharti Telecom seeks Rs 4,900 crore FDI nod
Bharti Telecom, a promoter of Bharti Airtel, has sought government nod for the infusion of Rs 4,900 crore investment from Singapore-based Singtel and other foreign entities. The fund infusion will enhance foreign stakeholding in Bharti Telecom to over 50 per cent that will make it a foreign-owned entity, an official source aware of the development told PTI. Sunil Bharti Mittal and his family own around 52 per cent stake in Bharti Telecom, at present.

India's real GDP growth in FY20 to be below 5%: IHS Markit
India's real GDP growth in the current financial year is expected to be below 5 per cent as the revival measures taken by the Modi government will take time to filter through the economy, an IHS Markit report said. Financial sector fragilities continue to weigh on India's economic growth momentum, with the high level of non-performing loans on the balance sheets of the public sector banks, constraining their new lending, the report said. India's GDP growth rate slowed down to 4.5 per cent in the July-September quarter of this fiscal.

7 states to move SC if Centre doesn't pay up Rs 30,000 crore GST dues
Amidst muted Goods and Services Tax revenue growth and worries over delayed allocation of compensation cess to states, a few state governments are considering legal recourse against the Centre if their dues are not cleared immediately. States including Kerala, West Bengal, Punjab, Delhi, Madhya Pradesh, Rajasthan and Union Territories of Puducherry and Chhattisgarh are planning to knock at the door of the Supreme Court if their concerns are not addressed. Finance ministers and representatives of these states met Union Finance Minister Nirmala Sitharaman last week, urging her to release the pending compensation cess since August.

Tata Steel asks LGBTQ employees to declare partners, avail benefits under new HR policy
Tata Steel has introduced a new HR policy allowing its LGBTQ+ (lesbian, gay, bisexual, transgender, questioning and related communities) employees to disclose the identity of their partners and get all HR benefits admissible under the law. Under the expanded diversity and inclusion policy, Tata Steel employees along with their companions will now be able to get access to a lot of benefits, comprising medical services, health check-ups, joint house points, adoption leave, child-care leave, new-born parent leave and integration in the employee-assistance programme. The LGBTQ+ employees will also be eligible to receive financial aid for gender-reassignment surgery and 30-day special leave regarding the same.
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