IndiGo seeks re-appointment of M Damodaran as chairperson of Board of Directors for 5 more years Trump hikes tariff by 5% on Chinese goods in Sino-US trade war escalation Gujarat HC brings GST bloom to Textile Looms (See 'THE TOG INSIGHT' in Taxongo.com) Goyal helms Railway Board review meet; improving punctuality tops agenda (See 'Corpbrief') India sends delegation to world vocational skills expo (See 'Corpbrief') COTPA, 2013 - Criminal complaint against Director or Managing Director is only sustainable where sufficient material is present to prove their active role coupled with mens rea : SC (See 'Legal Desk') PMLA - Anticipatory bail merits being rejected where statements recorded u/s 50 of PMLA reveal the claimant to be evasive & also incriminate the claimant: HC (See 'Legal Desk') Patents Act, 1970 - Post revocation after post-grant opposition, no interim injunction order against use of patent is maintainable : HC (See 'Legal Desk') Indusfood expo 2020 eyes business of USD 1.5 Bn (See 'Corpbrief') 10th City Gas Development Network bid to be held on Aug 26 (See 'Corpbrief') FM announces change in auto policy - BS-IV vehicles registered prior to March 31, 2020 to be allowed full shelf life + Addl 15% Depreciation to be allowed till March 2020 + Ban on purchase of new cars replacing old vehicles by Govt Departments lifted Govt to unfold scrapping policy for automobiles sooner: FM Govt working on solutions for home buyers and real estate promoters stuck with fund problems FM says tax officials to be instructed not to overreach taxpayers to meet targets Govt to provide incentive to deepen bond market + SEBI to operationalise ADR / GDR to provide access to easy loans for industry + offshore rupee market to be provided at domestic exchanges Govt to amend MSME Act to give ONE definition for MSME; Cabinet approval to be taken soon NBFCs to be allowed to use Aadhar-authenticated KYC of banks: FM Bank loans - Online tracking option to be given to customers for ease of knowing status + Banks to introduce one time loan settlement policy Govt decides to withdraw Surcharge on capital gains made by FPIs + Surcharge on domestic investors also guillotined FM says All notices, including summons, by Income Tax Department to be centralised & computer-generated from October 2019 + Old notices to be either clears before Oct or to be re-generated with DIN + all notices to be cleared within 3 months Companies Act - Monetary penalty to be focus for offences under 16 Sections rather than prosecution + Govt decides to make CSR violations as civil liability and not criminal offence CCI to safeguard India Inc from abuse by global firms (See 'Corpbrief') INX Media saga - CBI seeks 5-day custody of P Chidambaram KIA Motors launches Made in India SUV Seltos SEBI Act, 1992 - Acceptance of CA certificate in particular pro forma by NSCCL does not absolve registered brokers from separate liability to submit similar pro forma as per NSE instruction : SAT (See 'Leal Desk') DLF shares tank 20% after SC issues notice for non-disclosure of key information on QIP Quantas Airways Ltd to run 20-hour direct flights from New York-London-Sydney to test passengers' endurance CBDT clarifies upon eligibility of small Start-ups for tax holiday (See 'Corpbrief') Govt eases condition of per MW lease rent on wind power projects (See 'Corpbrief')

Closure of pharma PSUs - Cabinet approves amendment in norms for sale of land

Published: Jul 17, 2019

By TIOLCORPLAWS News Service

NEW DELHI, JULY 17, 2019: THE Union Cabinet has approved the following decisions:

  1. Modifying the earlier decision dated 28.12.2016 of sale of land of PSUs to government agencies and instead permitting the sale of land as per revised DPE's guidelines dated 14.06.2018; and
  2. Providing budgetary support as loan to the tune of Rs 330.35 cr for meeting the employees' liabilities (Unpaid salary - Rs. 158.35 cr. + VRS Rs.172.00 cr.) as per following break-up:

a. IDPL - Rs.     6.50cr.

b. RDPL- Rs.  43.70cr.

c. HAL   - Rs. 280.15 cr.

(iii) Constitution of a Committee of Ministers for taking all decisions pertaining to closure/ strategic sale of the four Public Sector Undertakings, including the sale of assets and clearance of outstanding liabilities.

Major Impact:

  1. Budgetary support of Rs 330.35 cr. would help in disbursing the unpaid salaries and providing support for VRS of employees of IDPL, RDPL and HAL. The decision would mitigate sufferings of more than 1000 employees of these PSUs; and
  2. Setting up of a Committee of Ministers would expedite in process of implementation of the earlier Cabinet decision dated 28.12.2016 for closure of IDPL and RDPL and strategic sale of HAL and BCPL.

Background:

Cabinet had decided on 28.12.2016 to sell surplus land of Hindustan Antibiotics Limited (HAL), Indian Drugs & Pharmaceuticals Limited (IDPL), Rajasthan Drugs and Pharmaceuticals Ltd. (RDPL) and Bengal Chemicals & Pharmaceuticals Ltd. (BCPL) through open competitive bidding to Government agencies and clear the outstanding liabilities from the sale proceeds. It was decided that after meeting the liabilities, IDPL and RDPL would be closed and HAL and BCPL put up for strategic sale. Department took earnest efforts for sale of surplus land, but could not find buyers, despite issuing tenders more than once. Meanwhile, the Department of Public Enterprises (DPE) has issued revised guidelines on 14.06.2018 in respect of disposal of land of the PSUs. As funds could not be generated through sale of surplus land, the employees in few of the PSUs (HAL and RDPL) could not be paid salaries and VRS scheme floated. As such, it was decided to dispose of the land as per revised DPE's guidelines and seek up-front budgetary support for meeting employees' liabilities.

TIOL CORP SEARCH

TIOL GROUP WEBSITES