WEEKLY LABOUR LAW UPDATES (21.08.2020 TO 28.08.2020)

WEEKLY Labour law updates

 (21.08.2020 TO 28.08.2020)

Sl. No.	Particulars	Link
1	Relaxation in eligibility criteria and enhancement in the payment of unemployment benefit under Atal Bimit Vyakti Kalyan yojana of ESIC	Click here
2	EPFO Makes Signficant Progress in Updating KYC of its Subscribers During July- 2020 Despite Covid Pendemic	Click here
3	Implications of AI on the Indian Economy	Click Here
4	Employees’ Provident Fund Organisation (Personal Assistant) Recruitment Rules, 2020	Click Here
5	the Central Government is of the opinion that public interest requires the extension of the public utility service status to the said industries for a further period of six months;	Click Here

Disclaimer:

IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION

WEEKLY CORPORATE BITES (21.08.2020 to 27.08.2020)

Ø Key update of this week

1.     MCA maiden success in recovery of $3.25 million in Nirav Modi case from USA.

Punjab National Bank Ltd. (PNB) has informed the Ministry of Corporate Affairs (MCA) which spearheaded the corporate governance litigation in a foreign jurisdictional Court, that it has received $ 3.25 million (equivalent of Rs. 24.33 crore) as the first tranche of recoveries. Upon liquidation of the debtors’ assets by the US Chapter 11 Trustee, a sum of $ 11.04 million (equivalent of Rs. 82.66 crore) is available for distribution to unsecured creditors including PNB. Further recovery there from is subject to other expenses and settlement of claims of other claimants.

2.     Overseas direct investment norms to be made simpler, based on principles

The regulator also intends to introduce late submission fee for delayed reporting of overseas direct investments (ODI) by Indian parties and resident Indians.

3.     Private investors plan to expand gas pipeline network amid complex policies

Indian and foreign investors have shown interest in the country's plans to expand its domestic gas pipeline network but remain worried about steel capacities at home and the complex pricing policies

4.     ByteDance investors seek to use stakes to finance TikTok bid: Report

ByteDance has been in talks to divest TikTok's North America, Australia and New Zealand operations to potential acquirers, including Microsoft Corp and Oracle Corp

5.     Zomato raises Rs 184 cr from existing investor; eyes funds from Temasek

The infusion is expected to help Zomato compete with Tencent-backed Swiggy and e-commerce giant Amazon, which recently forayed into food delivery

  

6.     MSME promoters likely to stay in charge during resolution process

However, all key decisions will have to be finalised by CoC; govt is also considering amending IBC to bring in the pre-packed scheme for all stressed companies

Disclaimer:

IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.

Weekly IBC Updates (21.08.2020 to 28.08.2020)

weekly IBC Updates

1.  Former RBI governor Raghuram Rajan has said that, instead of closing the insolvency option completely for Covid defaults, borrowers should have been allowed to renegotiate the loans under the bankruptcy platform and retain their businesses.

Rajan said that after Covid, there was a tendency to take a stand that this is a new kind of situation and requires a new kind of process and therefore cases cannot be referred under the Insolvency and Bankruptcy Code (IBC).

weekly updates

Sl. No.	Particulars	Link
1	In the matter of State Bank of India Vs. Anil Dhirajlal Ambani in IA No. 1009 of 2020 in CP(IB) 916 (MB) of 2020 & IA No. 1010 of 2020 in CP(IB) 917 (MB) of 2020	Click here
2	In the matter of Mr. Rajneesh Singhvi, Insolvency Professional	Click here
3	Invitation of Public comments: Discussion Paper on Corporate Liquidation Process	Click here

Disclaimer:

This write – up is prepared as a Knowledge Sharing Initiative.

*Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition.’ 

IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.

Weekly RBI Updates (21.08.2020 to 28.08.2020)

RBI Updates 21.08.2020 to 28.08.2020

Sl. No.	Particulars	Link
1	New Definition of Micro, Small and Medium Enterprises – clarifications	Click here
2	RBI Announces Special Open Market Operations (OMOs) of Simultaneous Purchase and Sale of Government of India Securities	Click here
3	It is Time for Banks to Look Deeply Within: Reorienting Banking Post-Covid (Keynote Address by Shri Shaktikanta Das, Governor, Reserve Bank of India - Delivered at the Unlock BFSI 2.0 with Business Standard on Thursday, August 27, 2020)	Click Here
4	Annual Report for the year 2019-20	Click Here

Disclaimer:

This write – up is prepared as a Knowledge Sharing Initiative.

*Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition.

IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.

41st GST Council meeting outcome : Key highlights dated 27th August, 2020

41^st GST Council meeting outcome : Key highlights dated 27^th August, 2020

The 41^st GST Council met under the Chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman via video conferencing today i.e. 27^th day of August, 2020. Shru Anurag Thakur and Finance Ministers of States & UTs and Senior officers from Union Government & States are present.

EXPECTATIONS:

·         issues such as compensation to states and GST rates revision.

·         issues such as compensation to states, revenue shortfall.

·         two-wheeler industry desperately seeks GST rate cut

·         Finance Ministry to examine if sin tax applies to soft drinks

·         Issues such as the Centre should borrow from the market and provide to states as it will get a lower rate and easier access to markets. More so, since Centre has to make good on its promise to states for paying the due compensation.

41^ST GST COUNCIL MEETING KEY HIGHLIGHTS

1.      States were given two options to make up for their revenue shortfall amid the Covid-19 pandemic.

·        to provide a special bowrrowing window to states, in consultation with the RBI, to provide Rs 97,000 crore at a "reasonable" interest rate and this money can then be repaid after 5 years by extending cess collections.

·         to meet the entire GST compensation gap of Rs 2.35 lakh crore this year itself after consulting with the RBI

2.      States will also be given a further relaxation in FRBM of 0.5% points for market borrowing.

3.      States Seek Seven Days To Consider Cess Option

4.      The Attorney General is of the view that compensation needs to be paid to states for five years. But this compensation gap has to be met from the levy of cess.

5.      This is not the appropriate time to talk of increases in tax rates.

6.      Data analysis:

About Rs 3 lakh crore would be the need of compensation to be paid to states while compensation cess collected would be Rs 65,000 crore. April-July compensation is around Rs 1.50 lakh crore

Disclaimer:

IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.

your feedback is valuable for us.