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Exclude lockdown period while computing 90 days for NPA: Bombay High Court

“As currently advised, therefore, the period of March 1 until May 31 during which there is a lockdown will stand excluded from the 90-day NPA declaration computation until — and this is the condition — the lockdown is lifted”, said the High Court.

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Mumbai, April 12 : In a major relief to a Mumbai-based construction company, the Bombay High Court said the period of the lockdown is to be excluded while computing 90 days for the declaration of non-performing assets (NPAs).

The decision of the High Court came on a petition by Transcon Iconica, which took a loan from ICICI Bank, and twice failed to make payments – January 15 and February 15 – and this has not been paid until now.

According to the RBI circulars and notifications if payment is not made and the accounts are not regularised within 90 days of the date of default, then the borrower’s account gets classified as NPAs. But before the completion of this period, the lockdown was announced. The RBI also announced the moratorium on loan payments, which would start from March 1 to May 31.

The single judge bench headed by Justice G.S. Patel observed that the period of the moratorium during which there is a lockdown will not be reckoned by ICICI Bank for the purposes of computation of the 90-day NPA declaration period.

“As currently advised, therefore, the period of March 1 until May 31 during which there is a lockdown will stand excluded from the 90-day NPA declaration computation until — and this is the condition — the lockdown is lifted”, said the High Court.

The court also observed that irrespective of the continuance of the moratorium until May 31, if the lockdown is lifted at an earlier date, then this protection available to the petitioners will cease on the date of lifting of the lockdown, and the computing and reckoning of the remainder of the 90-day period will start from that earlier lifting of the lockdown-ending date.

The High Court also clarified that this order will not serve as a precedent for any other case in regard to any other borrower who is in default or any other bank. Each of these cases will have to be assessed on their own merits, it said.

After the RBI issued a circular giving liberty to all banks to allow a moratorium of three months on payment of installments outstanding as on March 1, the construction company moved the court seeking moratorium period to be “excluded even for the computation of any balance days of the NPA-declaration 90-day period.”

Justice Patel clarified this order is not a backward extension of the moratorium to January 2020. “The moratorium period of 1st March 2020 to 31st May 2020 does not per se give the petitioners any additional benefits in regard to the prior defaults, i.e. those that occurred before 1st March 2020. Thus, the relief to the petitioners is co-terminus with the lockdown period, not the declared end of the moratorium. This is the only way to harmonise the present requirements of both sides,” observed the court.

ICICI bank, through its counsel Viraag Tulzapurkar, had however questioned the maintainability of the petition.

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What happened to our officer in Mumbai is not right: Bihar CM

Kumar, however, did not talk about the CBI probe in the death of Bollywood actor Sushant Singh Rajput.

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Nitish Kumar Sad

Patna, Aug 3 : Bihar Chief Minister Nitish Kumar has expressed his displeasure over the way Bihar Police IPS officer Vinay Tiwari, who is in Mumbai to probe Sushant Singh death case, was treated by the Mumbai Police. Tiwari was forcibly quarantined upon arrival in Mumbai by Brihanmumbai Municipal Corporation officials. The Chief Minister said whatever happened with Tiwari in Mumbai is not right.

Talking to media persons in Patna, Kumar said, “What happened to the IPS officer who went to Mumbai to investigate the Sushant case was not right. He was carrying out his duty.”

Kumar further said that the Director General of Bihar Police will talk to the officials of Maharashtra about the alleged mistreatment of Tiwari.

Kumar, however, did not talk about the CBI probe in the death of Bollywood actor Sushant Singh Rajput.

Rajput was found dead in his apartment in Mumbai on June 14, in what the Maharashtra Police said was a case of suicide.

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Bihar cop Vinay Tiwari quarantined in Mumbai as per norms: BMC

Late on Sunday, Bihar DGP Gupteshwar Pandey said that Tiwari was aforcibly quanratined’ even before he could initiate the probe.

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Vinay Tiwari IPS

Mumbai, Aug 3 : Amid the mounting row over the move to shunt Bihar Police officer Vinay Tiwari to isolation, the BrihanMumbai Municipal Corporation (BMC) on Monday said that he has been “quarantined as per existing norms in the wake of the Covid-19 pandemic”.

Rushing to Mumbai in connection with the probe into the Sushant Singh Rajput case, Tiwari — an IPS officer and Superintendent of Police, Patna Central — is presently lodged in state police guest house in Goregaon.

The BMC said the P/SouthWard administration received information of the officer arriving at the SRPF Group 8 guesthouse in Goregaon east and a BMC team went to meet him on Sunday evening.

“Being a domestic air traveller, he needs to be guided for home quarantine as per the State government guidelines. Accordingly, the P/South ward team approached him at the said guest house late on Sunday evening,” the official said.

The official said that the BMC team explained to him the whole procedure for domestic air travellers, including “home quarantine”, which is fixed by the State government notification dated 25 May, 2020 under number DMU/2020/CR. 92/DisM-1.

“He has also been guided to apply to the competent authority of BMC for exemption in the home quarantine period as per the State government notification,” the official said, with the prospects of Tiwari remaining isolated till around Aug. 15.

Late on Sunday, Bihar DGP Gupteshwar Pandey said that Tiwari was aforcibly quanratined’ even before he could initiate the probe.

“IPS officer Vinay Tiwari arrived in Mumbai today on official duty to lead his police team from Patna but he was forcibly quarantined by the BMC officers at around 11 p.m. Earlier, he was not given a place in the IPS mess when he said that he is staying in a guest house in Goregaon,” Pandey tweeted last night.

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Karnataka CM’s daughter too tests Covid positive

“Both (father and daughter) are asymptomatic. They tested positive due to mild symptoms of the disease,” added the official.

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Yediyurappa Karnataka

Bengaluru, Aug 3 : After Karnataka Chief Minister B.S. Yediyurappa tested Covid positive on Sunday night, his youngest daughter B.Y. Padmavati was found to have been infected with the disease, an official said on Monday.

“As Padmavati’s sample result turned positive, she has also been admitted to the privately-run Manipal Hospital where Yediyurappa is under treatment for the virus,” an official of the Chief Minister’s Office told IANS here.

Yediyurappa, 78, has five children, including two sons and three daughters.

“Though the Chief Minister’s eldest son B.Y.Vijayendra, who also stays with him in the official residence, tested negative, he has been advised to be in isolation at home,” said the official.

In a tweet, Vijayendra said as a precaution, he will be in home quarantine for a week.

“My father (Yediyurappa) is doing fine and under observation of doctors who said there is no need to worry,” tweeted Vijayendra.

According to the hospital’s health bulletin, Yediyurappa is doing well and is clinically stable.

“Yediyurappa has been admitted to our hospital on Sunday night for observation. He is clinically stable and is monitored by a team of doctors,” said the bulletin.

The hospital has allowed Yediyurappa and his daughter to have food from home.

“Both (father and daughter) are asymptomatic. They tested positive due to mild symptoms of the disease,” added the official.

The Chief Minister’s other family members and relatives who have been in contact with him were also advised to go into quarantine.

The Chief Minister’s official and personal staff, including cook, servants and drivers has been advised to be in isolation for a week.

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