Govt. sets up ‘bad bank’ to clear the NPA mess 

  • Paving the way for a major clean-up of bad loans in the banking system, the Cabinet cleared a ₹30,600 crore guarantee programme for securities to be issued by the newly incorporated ‘bad bank’ for taking over and resolving Non-Performing Assets (NPAs) amounting to ₹2 lakh crores. 

  • The Reserve Bank of India is in the process of granting a license for the National Asset Reconstruction Company Limited (NARCL), following which toxic assets worth ₹90,000 crore that banks have already fully provided for will move to the NARCL

  • Under the mechanism, the NARCL will acquire assets by making an offer to the lead bank. Private sector Asset Reconstruction Firms (ARCs) may also be allowed to outbid the NARCL. 

  • Separately, public and private lenders would combine forces to set up an India Debt Resolution Company (IDRC) that would manage these assets and try to raise their value for final resolution.

  • The whole idea is to ensure that these assets for which this whole setup is being created, and the value that is locked in the assets is realized and comes back to the banks; they use it as a growth capital and the banking system becomes more robust

  • The Cabinet’s decision, to extend a five year guarantee for NARCL issued security receipts to banks, completed the entire cycle of cleaning up India’s banking system that began with the recognition of the extent of bad loans in 2015.


Asthana’s appointment in public interest: Centre

  • The Centre has informed the Delhi High Court that the appointment was done in “public interest”, taking into account the Capital’s policing issues, which not only had national security but also cross-border implications.

  • The Centre, in an affidavit filed before the High Court, said that best attempts were made to find a suitable Indian Police Service (IPS) officer having diverse experience of policing in a vast State or Central Investigating Agency or National Security or paramilitary force from the options available in AGMUT (Arunachal Pradesh, Goa and Mizoram Union Territories) cadre.

  • The High Court will hear the case on September 20


Cheema to head NCLAT till Sept. 20

  • After a brief impasse with the Supreme Court, the Central government agreed, as a one-off measure, to reinstate Justice A.I.S Cheema as Acting Chairperson of the National Company Law Appellate Tribunal (NCLAT) till his retirement on September 20 so that he can pronounce the judgments pending with him.

  • The Attorney General informed the court that Justice M. Venugopal, a former Madras High Court judge who was appointed the new NCLAT Acting Chairperson on September 11, would go on leave for the next few days till Justice Cheema completed his tenure on September 20.

  • The reinstatement spells relief for Justice Cheema, who had challenged his “premature” removal from the post on September 10 


SC allows idol immersion in Hussainsagar

  • A three judge Bench led by Chief Justice of India (CJI) N.V. Ramana passed the order on a petition filed by the Greater Hyderabad Municipal Corporation (GHMC). The civic body had sought a stay of a September 9 order of the Telangana High Court banning the immersion of Ganesha idols made of PoP (Plaster of Paris) in the lake.

  • The CJI asked Mr. Mehta (Solicitor General) that “Once upon a time, the water in the lake was used for drinking. That time passed long ago. Now, I believe, a lot of money was spent on beautification... If the water is polluted again, won’t it be a waste of the money spent on the beautification,” 

  • The State argued that the well intentioned but unexpected ban on the immersion of PoP idols by the Telangana High Court would hit thousands of artisans hard.

  • The GHMC said that “The idols will be removed within 24 hours of immersion and has also created 25 baby ponds and also distributed 50,000 small environment friendly clay Ganesha idols…”


Uttarakhand High Court allows Char Dham Yatra

  • Lifting the ban on the yatra, a Division Bench of the court comprising Chief Justice R.S. Chauhan and Justice Alok Kumar Verma said the pilgrimage will start with restrictions like a daily limit on the number of devotees visiting the temples.

  • Carrying a negative COVID test report and a vaccination certificate will also be mandatory for the visitors.

  • The court order comes as a big relief to the State government which was under pressure from various quarters to start the pilgrimage with which the livelihoods of lakhs of people including travel agents and pilgrimage priests are linked 


Only 4 witnesses to be quizzed, panel tells SC

  • The Justice (retired) A. Arumughaswamy Commission, which is probing the hospitalization and death of former Chief Minister Jayalalithaa, told the Supreme Court that only four witnesses remained to be examined, and that the panel should be allowed to complete its work and submit its report.

  • In 2019, the court had stayed the inquiry after Apollo Hospitals alleged that instead of conducting an impartial inquiry, the Commission had transformed itself into an adversary.

  • The State had appointed the Commission, headed by Arumughaswamy, a retired Madras High Court judge, on September 25, 2017. Its reference was to examine the circumstances which led to the hospitalization of Jayalalithaa on September 22, 2016, and the nature of treatment given in order to determine the cause of hospitalization.

  • A Bench, headed by Justice Abdul S. Nazeer, assured the Commission, represented by Senior Advocate Ranjit Kumar, that its submissions would be heard in detail on September 23.


Param Bir plea quashed by the Bombay high court

  • The Bombay High Court held that former Mumbai Police Commissioner Param Bir Singh’s petition seeking to quash preliminary inquiries against him by the Maharashtra government is non-maintainable.


Reply to plea against ban on strikes: court

  • A Bench of Chief Justice D.N. Patel and Justice Amit Bansal asked the Ministry of Defence and Ministry of Law and Justice to give their stand on the plea, which has challenged the constitutional validity of several provisions of the Essential Defence Services Act, 2021 which came into effect from June 30, 2021.

  • In 2019, the court had stayed the inquiry after Apollo Hospitals alleged that instead of conducting an impartial inquiry, the Commission had transformed itself into an adversary.

  • The State had appointed the Commission, headed by Arumughaswamy, a retired Madras High Court judge, on September 25, 2017.

  • Its reference was to examine the circumstances which led to the hospitalization of Jayalalithaa on September 22, 2016, and the nature of treatment given in order to determine the cause of hospitalization.


NFRA needs to have Stand-alone legislation’

  • National Financial Reporting Authority (NFRA) Chairperson R. Sridharan pitched for a ‘standalone legislation’ for the regulator in the interests of autonomy, and emphasized all necessary penal provisions relating to financial reporting should be consolidated and vested with it.

  • Noting that the NFRA operated under a single section of the Companies Act, he said the section did not provide comprehensive coverage of all the functions and powers that are required to constitute the authority as a ‘corporate financial reporting regulator’.


China questions India’s missile project

  • China cited a United Nations Security Council (UNSC) resolution issued after the 1998 nuclear tests to question India’s missile programme amid reports of an upcoming test for the Agni V intercontinental ballistic missile.

  • The resolution, in the aftermath of the 1998 nuclear tests, “calls upon India and Pakistan immediately to stop their nuclear weapon development programmes, to refrain from weaponization or from the deployment of nuclear weapons, to cease development of ballistic missiles capable of delivering nuclear weapons and any further production of fissile material for nuclear weapons, to confirm their policies not to export equipment, materials or technology that could contribute to weapons of mass destruction or missiles capable of delivering them and to undertake appropriate commitments in that regard”.


AUKUS seeks to reshape Indo-Pacific ties

  • Australia, the U.K. and the U.S. (AUKUS) have announced they are forming a new security alliance that will help equip Australia with nuclear-powered submarines.

  • The alliance will see a reshaping of relations in the Indo-Pacific region and beyond.

  • Experts say the nuclear submarines will allow Australia to conduct longer patrols and give the alliance a stronger military presence in the region.

  • Under the arrangement, Australia will build at least eight nuclear-powered submarines using U.S. expertise, while dumping a contract with France for diesel-electric submarines.

  • China hit out at the new partnership announced by Australia, the U.K. and the U.S., saying it would “undermine” regional peace and “intensify” an arms race.


Extracted & Compiled by- Mr. Rajat Gupta, Advocate-Delhi High Court

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