From the business world:
A lifeline to Yes Bank, Supreme Court’s AGR order, Jet Airway’s insolvency

YES Bank got a Rs 60,000-crore lifeline from the central bank as it resumed operations and urged depositors keep the faith. The Supreme Court shot down the telecom department’s proposal to let telecom pay their adjusted gross revenue dues over 20 years. The collection of advance tax paid by corporate houses fell over 10 per cent during April-March 15 of 2019-20, likely leading to a revenue shortfall for the government. Here is more on what happened this week.

Business Standard
21st March

  • The Reserve Bank of India (RBI) has extended a credit line of Rs 60,000 crore to YES Bank to ensure that the private lender is able to meet its obligations to depositors as it resumes operations fully, sources said. The RBI is acting as the “lender of the last resort”, and YES Bank will have to use its immediate liquid assets before it can touch the credit line.
  • The Supreme Court again came down heavily on the Department of Telecommunications, which had filed a petition seeking relief for companies in paying the dues linked to adjusted gross revenue (AGR). The court shot down the department’s proposal that telecom companies might be permitted a 20-year staggered payment and exemption from penalties and interest in relation to the AGR dues.
  • The National Company Law Tribunal (NCLT) granted a 90-day extension to Jet Airways’ corporate insolvency resolution process (CIRP). The Resolution Professional’s counsel argued the lenders would get better value for their assets if these were sold in the CIRP period via a formal resolution plan, instead of the liquidation value. The collection of advance tax paid by corporate houses fell over 10 per cent during April-March 15 of 2019-20. This decline, after the deadline of the fourth instalment ended on March 15, could lead to a revenue shortfall of at least Rs 35,000 crore in the total direct tax collections of the current fiscal, tax officials in the know said.
  • Goldman Sachs Group Inc. and Morgan Stanley economists joined the rush on Wall Street to declare that the coronavirus has triggered a global recession, with the debate now focusing on its likely length and depth. Economists threw away their forecasts that the world could avoid tumbling into recession for the first time since the financial crisis.
  • The government has made the norms for corporate social responsibility (CSR) more stringent. In new draft rules, greater onus has been put on companies for reporting details of their CSR activities and how such funds are used. The corporate affairs ministry has invited public comments on the draft rules by March 28.

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