Source Business standard
CS A Rengarajan
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Monnet may accept resolution plans even after deadline |
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Kolkata, 13December In February, Sajjan Jindalcontrolled JSW Steel had emerged the sole bidder foracontrolling stake in Monnet Ispat &Energy through the strategic debt restructuring (SDR) route. On Tuesday, when the bids closed at 6pm for resolution plans for Monnet, which is going through the Reserve Bank of India (RBI)mandated insolvency process, the only bid came from the JSWAION combine. The only difference between then and now is that the present offer includes an upfront cash component. Asked whether JSWAION was the only bidder for Monnet at this point, Sumit Binani, resolution professional for the company, said the first right to this knowledge was with the committee of creditors. Binani is supported by Grant Thornton. The committee of creditors is expected to meet soon to take up the proposal. The Monnet stock on Wednesdayappreciated2.10percent and closed at ~34 on the BSE. Sources close to the development said the maximum weightage in the Monnet evaluation criteria was for the upfront payment. Monnet also happened to be one of the few cases that had made the evaluation criteria known to prospective bidders well ahead of submission of resolution plans. The modalities of JSWAION are yet to be worked out, but JSW will be running the plant if its plan finally gets approved. It could also hold majority in the special purpose vehicle. Sources said that even though the date for accepting resolution plans has passed, these could be accepted by the resolution professionals till the last date and placed before the committee of creditors for consideration. The last date for Monnet would be January 13 unless it seeks an extension. According to the Insolvency and Bankruptcy Code (IBC) rules, the committee of creditors would have to finalisearesolution plan for the company within 180 days, with provision for an extension for another 90 days. Monnet´s 180 days would becompletedonJanuary13and 270 days on April 4. The last offer that JSW Steel had made for Monnet was to take over debt of around ~2,222 crore. Monnet´s debt in FY16 stood at ~8,900 crore. Lenders had refused to takeacall on the proposal as they found the haircut too steep. Sources indicated that Monnet´s liquidation value before the bidding process started was calculated and amounted to around ~2,300 crore. If JSW´s offer was below ~2,300 crore then the committee of creditors might be inafix. But given that JSW´s last offer was ~2,222 crore, it was likely to up it since it was going throughabidding process. It now remains to be seen whether any other bidder submitsabusiness plan.Anumber of firms including Tata Steel andaclutch of private equity firms like SSG, TPG had submitted expression of interest. August 2015: Lenders invoke SDR in Monnet February 2017: JSW emerges as sole bidder for Monnet July 2017: NCLT admits Monnet case September 25, 2017: Prospective bidders submit EOIs December 12, 2017: Deadline for submission of resolution plans ATAGLANCE |
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Dec deadline for Aadhaar linking to bank a/ cextended to March 31 |
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New Delhi, 13 December The government on Wednesday extended by three months till March 31 the deadline for mandatory quoting of national biometric identifier Aadhaar and Permanent Account Number (PAN) for bank accounts and certain financial transactions. The deadline for existing bank account holders to furnish the 12digit biometric identifier was initially December 31, 2017. The extension has been granted “after considering various representations received and inputs received from banks,” an official statement said here. The government had last week extended the deadline for linking of PAN with Aadhaar till March 31, 2018. Now, the deadline for bank accounts has been extended but there is no word on extending the February 6, 2018, deadline for linking mobile SIM cards with Aadhaar. Last evening, the government had issuedagazette notification amending rules under the Prevention of Money Laundering Act of 2002 (PMLA) by replacing the requirement of submitting "the Aadhaar number and Permanent Account Number by December 31, 2017" withaprovision saying "submit the Aadhaar number, and Permanent Account Number or Form No. 60, by such date as may be notified by the Central Government". Following this, March 31, 2018 was Wednesday notified as the fresh deadline. The Aadhaar is issued by the Unique Identification Authority of India (UIDAI). The PAN is allotted by the Income Tax Department. Form 60 isadeclaration filed by an individual oraperson (not beingacompany or firm) who does not haveaPAN and who enters into any specified transaction. Under the Prevention of Money Laundering Act (PMLA), Aadhaar, PAN and other official documents are required to be obtained by banks and financial institutions from anyone openingabank account as well as for any financial transaction of ~50,000 and above. The government had earlier said failure to submit Aadhaar number and PAN within the stipulated timelines would mean that the account "will cease to be operational till the time the Aadhaar number and Permanent Account Number is submitted by the client". The PMLA forms the core of the legal framework put in place by India to combat money laundering and generation of black money. The PMLA and its rules impose an obligation on "reporting entities" like banks, financial institutions and intermediaries to verify the identity of clients, maintain records and furnish information to the Financial Intelligence Unit of India (FIUIND). As per Rule 9, every reporting entity shall at the time of commencement of an accountbased relationship identify its clients, verify their identity and obtain information on the purpose and intended nature of the business relationship. Intermediaries like stock broker, chit fund company, |
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