Category: INSOLVENCY AND BANKRUPTCY

ENFORCEMENT DIRECTORATE PERMITTED TO ATTACH THE ASSETS OF JP MORGAN TO THE EXTENT OF MONEY DIVERTED FROM AMRAPALI HOMEBUYERS

 

Last year Supreme court has ordered for the cancellation of RERA Registration of Amrapali group, as there were huge complaints of Diversion of the money paid by Homebuyers. Nearly 42000 flat buyers were waiting for possession of the flats after payment of huge amount of sale consideration. Nether the development was done nor flat was handed over to the Homebuyers.  Thus Home Buyers group has approached the Supreme Court in this regard.

In the meanwhile there were also allegations that the Amrapali group has diverted the Money to JP Morgan. The Supreme court has kept an embargo to the ED as to not to attach the assets of JP Morgan. That know the ED has provided Sufficient document in support of diversion of funds from Amrapali group to JP Morgan through the account. Hence Supreme Court has given permission to Enforcement Directorate (ED) which has identified that an amount of Rs.187 crores has been diverted to JP Morgan by Amrapali group from the amount paid by Amrapali Homebuyers in violation of Foreign Exchange Management Act & FDI Norms.

GOVT. PROPOSES ONE MORE AMENDMENT TO IBC EXTENDING THE TIME LINE TO 1 YEAR PERIOD  IN VIEW OF COVID-19 AND EVEN MSME’S TO BE COVERED UNDER IBC WITH NEW LAWS.

The Central govt. has put forward to do some more Amendments to IBC laws in view of the Economic impact of COVID-19 Lockdown and Business shut down. The Central govt. is likely to do more changes to IBC Amending the laws that any default in the COVID-19 emergency situation shall not be treated as Default apart from increasing the threshold of the claims limit form 1 Lakh Rupee to 1 Crore Rupees. The amendment will be brought into effect that no new cases shall be filed against any company for a period of one year instead of 6 months that was done earlier.

Though central Govt. is trying to put all its efforts to give a new lifeline for the companies, and brining in major changes in the laws. How will this really impact the Economy of the country? The answer for this is not clear, because the lock down is relaxed, Industries of all categories have started functioning will the Economy gain and take back the position as it existed PRE COVID stage is again uncertain. Because the 50 days lock down not only put back the Economy of the Country to a Whole new start along with loss of Jobs, common man does not have earnings, small business are striving hard to gain back the position and sustain in the business. Unless until the common man has got the capacity to spend easily all these efforts may not give expected results. As every person and every Businesses have to start from a New beginning.

The Govt. proposes to bring MSME’S under the IBC code with new Amendments to protect the Industries and the lifeline of small Business to labor class.

This action though is taken to protect the Industries there are chances that intentional defaults also get protected with new Amendments which will be a open way to hurt the Economy again.

We have to wait for the Positive things to happen to every human being to Survive and then only the Industries can sustain leading to the Economic development of the country.