Latest news with #MaharashtraProtectionofInterestofDepositors(inFinancialEstablishments)Act
Time of India
4 days ago
- Business
- Time of India
SBI seeks review of SC ruling denying secured creditors priority over attached assets
The State Bank of India has filed a petition seeking review of the Supreme Court's May 15 judgement that held that secured creditors will not have priority of interest over movable and immovable properties attached by the Maharashtra government under the provisions of the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, 1999. SBI said the decision needs to be reviewed as it creates a bad precedent, thereby undermining the certainty and sanctity of secured lending; violated established doctrines of repugnancy and exclusive legislative competence; eroded the priority rights of secured creditors, thus impacting India's credit system and NPA resolution framework . 'Section 238 IBC ( Insolvency and Bankruptcy Code ) gives it overriding effect over any other law. In case the moratorium is disturbed, and the assets are alienated, it would seriously jeopardise and frustrate the effective implementation of a Central Act viz. IBC,' the SBI said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Buy Lifetime Office 365 Download Undo The impugned judgment misapplied Article 246 by allowing a state law (MPID Act) to override or dilute Parliamentary laws—SARFAESI Act (2002) and RDB Act (1993), the review petition filed by counsel Sanjay Kapur stated. '...enforcing a security interest is one of the prime objectives behind the enactment of the SARFAESI Act by the Parliament and it does not overlap with the objective of the MPID Act. However, if the attachment proceedings against the Secured Asset under MPID Act is allowed to be continued, it would directly disrupt the functioning/operation of the Parliamentary enactments viz. SARFAESI Act, IBC, etc, and would result in apparent repugnancy, in which case the parliamentary enactments would prevail,' the PSU bank said. Live Events While upholding the Maharashtra government's decision to attach the properties in the Rs 5,600-crore National Spot Exchange scam , which had affected over 13,000 investors in 2013, the SC had in May held that the state depositors law will override the provisions of Central financial recovery statutes , including the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, the Recovery of Debts and Bankruptcy Act and IBC. The top court said that "no priority of interest can be claimed by the secured creditors against the properties attached under the MPID Act, and that the provisions of MPID Act would override any claim for priority of interest by the secured creditors in respect of the properties which have been attached under the MPID Act." It further held that properties of the judgment debtors and garnishees attached under the 1999 Act would be available for execution of decrees passed by a committee set up by the apex court despite a moratorium provision under Section 14 of IBC.
India Today
08-07-2025
- Business
- India Today
Devendra Fadnavis orders probe into hotel deal involving Shinde Sena minister's son
Maharashtra Chief Minister Devendra Fadnavis on Monday announced a high-level inquiry to ascertain any irregularities in the tendering process to auction a hotel in Chhatrapati Sena MLA and state minister Sanjay Shirsat had come under fire after the opposition pointed out that his son's company was one of the three Danve, leader of the opposition in the legislative council, raised the issue through a calling attention The VITS Hotel in Chhatrapati Sambhajinagar belonged to Dhanda Corporation, a company listed on the Bombay Stock Exchange. The properties of the Dhanada Corporation, including the VITS Hotel, were seized under the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, court ordered the auction of the hotel. Accordingly, the Chhatrapati Sambhajinagar collectorate conducted to the government-registered valuer's report in December 2018, the value of the hotel was Rs 75.92 crore. In 2025, when the property is being auctioned, the value is pegged as per the 2018 valuation. The value of the hotel is Rs 150 crore now as per private valuers, Danve alleged the lack of transparency in the auction process. He said three companies joined the process including M/s Siddhant Material Procurement and Suppliers Company. He said the company belongs to Maharashtra Social Justice Minister Sanjay Shirsat's son alleged that the company's registration form states that it had applied for registration in 2024 but has not yet been alleged cartelisation in the tendering process. M/s Siddhant Material Procurement and Suppliers Company bid for the company at the price of Rs 47 crore. The next two bidders bid with a difference of just Rs 5 lakh each- at Rs 46.95 and Rs 46.90 crore."This is a fraud and the government is being defrauded in a big way. Sidhant Shirsat is the son of Social Justice Minister Sanjay Shirsat. There is no ITR. What action will be taken against the government officer who allowed this irregularity," Danve said Revenue Minister Chandrashekhar Bawankule had stated that the entire process has been scrapped and a new process will be initiated to float fresh tenders."There will be a high-level inquiry to probe if there are any irregularities in this case to ensure transparency," he said the tender and the process have been cancelled. He said tenders were floated six times in the past but no bid was received. In the process, the base price and conditions kept coming said new tender will be on the council, Shirsat stated that the tender had been floated six times in the past but received no bid. He also said the tendering process was being carried out as per the court's flak, Shirsat last month said he was asking his son Siddhant to withdraw from the race to procure a hotel.- EndsTune InMust Watch IN THIS STORY#Maharashtra
