Integrated Multi-purpose infrastructure Development Corporation for Ladakh

Background

• Consequent upon re-organisation of the erstwhile State of Jammu and Kashmir as per the Jammu and Kashmir Reorganisation Act, 2019, the Union Territory of Ladakh (without Legislature) came into existence on 31.10.2019.
• An Advisory Committee was constituted under section 85 of the Jammu and Kashmir Reorganization Act, 2019 for making recommendations regarding the apportionment of the assets and liabilities of the erstwhile State of Jammu and Kashmir between the Union Territory of Jammu and Kashmir, and the Union Territory of Ladakh. The said Committee inter-alia recommended for the establishment of an Integrated Infrastructure Development Corporation Limited on the lines of the Andaman & Nicobar Islands Integrated Development Corporation Limited (ANIIDCO), with an appropriate mandate to take up various developmental activities as per the specific needs of Ladakh.
• Accordingly, the Union Territory of Ladakh sent a proposal to this Ministry for the establishment of the corporation in the Union Territory of Ladakh, which was recommended by the Committee on Establishment Expenditure (CEE), Ministry of Finance in April, 2021.

About Integrated Multi-purpose infrastructure Development Corporation

• The Cabinet also approved the creation of one post of Managing Director, for the corporation in the pay scale of Rs.1,44,200- Rs.2,18,200level.
• The authorized share capital of the Corporation will be Rs.25 crore and recurring expenditure will be around Rs. 2.42 crore per year.  It is a new establishment.  Presently, there is no such similar organization within the newly formed UT of Ladakh.  The approval has an inherent potential for employment generation as the corporation will be undertaking various kinds of developmental activities. Corporation will work for industry, tourism, transport and marketing of local products and handicraft. Corporation will also work as main construction agency for infrastructure development in Ladakh.
• The establishment of corporation will result in inclusive and integrated development of the Union Territory of Ladakh.  This will, in turn, ensure socio-economic development of the entire region and population of the Union Territory.
• The impact of development will be multi-dimensional.  It will help in further development of human resources and better utilization thereof.  It increases domestic production of goods and services and will facilitate their smooth supply.  Thus, the approval will help in realizing the goal of Atmanirbhar Bharat.

Click here for bifurcation of J&K into 2 UTs.

IBBI amends Insolvency rules to improve transparency

The Insolvency and Bankruptcy Board of India (IBBI) notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2016. It is a part of the Insolvency and Bankruptcy Act, of 2016.

The amendment regulations enhance the discipline, transparency, and accountability in corporate insolvency proceedings:

1. A corporate debtor (CD) may have changed its name or registered office address prior to the commencement of insolvency. The stakeholders may find it difficult to relate to the new name or registered office address and consequently fail to participate in the CIRP. The amendment requires an insolvency professional (IP) conducting CIRP to disclose all former names and registered office address(es) so changed in the two years preceding the commencement of insolvency along with the current name and registered office address of the CD, in all its communications and records.
2. The interim resolution professional (IRP) or resolution professional (RP) may appoint any professional, including registered valuers, to assist him in discharging his duties in the conduct of the CIRP. The amendment provides that the IRP/RP may appoint a professional, other than registered valuers if he is of the opinion that the services of such professionals are required and such services are not available with the CD. Such appointments shall be made on an arm’s length basis following an objective and transparent process. The invoice for the fee shall be raised in the name of the professional and be paid into his bank account.
3. The RP is duty bound to find out if a CD has been subject to avoidance transactions, namely, preferential transactions, undervalued transactions, extortionate credit transactions, fraudulent trading and wrongful trading, and file applications with the Adjudicating Authority seeking appropriate relief. This not only claws back the value lost in such transactions increasing the possibility of reorganisation of the CD through a resolution plan but also disincentivises such transactions preventing stress on the CD. For effective monitoring, the amendment requires the RP to file Form CIRP 8 on the electronic platform of the Board, intimating details of his opinion and determination in respect of avoidance transactions. The IBBI has specified the format of CIRP 8 through a Circular issued yesterday. This Form needs to be filed in respect of every CIRP ongoing or commencing on or after 14th July 2021.

Click here to read about the Insolvency and Bankruptcy Act, 2016