December 23, 2023

Section 159 – The Insolvency and Bankruptcy Code, 2016

The Insolvency and Bankruptcy Code, 2016 / /

After-acquired property of bankrupt (1) The bankruptcy trustee shall be entitled to claim for the estate of the bankrupt, any after-acquired property by giving a notice to the bankrupt. (2) A notice under sub-section (1) shall not be served in respect of – (a) excluded assets, or (b) any property which is acquired by or devolves upon the bankrupt after a discharge order is passed under section 138. (3) The notice under sub-section (2) shall be given within fifteen days from the day on which the acquisition or devolution of the after-acquired property comes to the knowledge of the bankruptcy trustee. (4) For the purposes of sub-section (3)- (a) anything which comes to the knowledge of the bankruptcy trustee shall be deemed to have come to the knowledge of the successor of the bankruptcy trustee at the same time; and (b) anything which comes to the knowledge of a person before he is appointed as a bankruptcy trustee shall be deemed to have come to his knowledge on the date of his appointment as bankruptcy trustee. (5) The bankruptcy trustee shall not be entitled, by virtue of this section, to claim from any person who has acquired any right over after-acquired property, in good faith, for value and without notice of the bankruptcy. (6) A notice may be served after the expiry of the period under sub-section (3) only with the approval of the Adjudicating Authority. Explanation. – For the purposes of this section, the term “after-acquired property” means any property which has been acquired by or has devolved upon the bankrupt after the bankruptcy commencement date. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon | Company Registration in Noida  Complete CA Services CA in Delhi | CA in Gurgaon | CA in Noida | CA in Jaipur | CA Firm in India RERA Services RERA Rajasthan | RERA Haryana | RERA Delhi | UP RERA

Section 159 – The Insolvency and Bankruptcy Code, 2016 Read More »

Corporate Fraud in India & Outside India under Companies Act, 2013

Companies Act 2013 / /

Corporate fraud is defined as unlawful, misleading activities conducted by a company or a person using highly trained accounting practices to inflate a company’s apparent earnings, which can take years to identify. Furthermore, this article seeks to analyze the causes and impacts of fraud on corporate stakeholders.  Corporate fraud consists of illegal, deceptive actions committed either by a company or an individual through highly qualified accounting techniques which is used to inflate a company’s apparent profits and may take years to detect. In addition these paper attempts to identify the cause and effects of fraud on the stakeholder of the business. This Article gives us the idea about the financial scams and development of judiciary on day to day basis. Corporate Fraud in India under the Companies Act, 2013 Corporate fraud-related provisions are covered under the Companies Act, 2013(“Act”). Section 447 of the Companies Act, 2013 states that anyone found guilty of fraud faces a sentence of imprisonment for a term that must not be less than six months but may reach ten years, as well as a fine that must not be less than the amount involved in the fraud but may go as high as three times that amount. Corporate fraud refers to unethical actions committed by a company or an individual in order to significantly increase their profits and gain an advantage over rivals. Corporate fraud causes significant losses to public monies that were given to the corporation for improved operation. Corporate fraud is the term used to describe any unlawful or unethical behavior by a company, an individual, or both that is typically done to obtain a competitive edge over other companies in the same industry. This might also be done to present a stronger market identity for the business and draw in more qualified investors. White-collar crimes are criminal actions carried out by wealthy men in society in an effort to make money the wrong way. This can take many different forms, including professional crime, fraud, tax evasion, bribery, counterfeiting, forging, and ad hoc crimes. This seeks to expand beyond the purview of a worker, extending to complicated and economic effects on the company, as well as on workers and other outside parties. These dishonest practices result in revenue losses due to asset theft, fictitious expenses, corruption, information theft, fraudulent applications, asset abuse, dishonest business partners, and fraudulent billings. The Biggest Corporate Frauds in India The following are the biggest corporate frauds in India: The Mundhra Scam was the first corporate scam that occurred in independent India. An entrepreneur named Haridas Mundhra invested Rs. 1.24 crores in government-owned LIC insurance from six different businesses in 1957. He committed this crime as a result of undue government pressure, and the LIC suffered significant financial loss. When Feroze Gandhi launched an anti-corruption drive and the Parliament approved the Life Insurance of India Act, nationalizing and consolidating businesses, the controversy took a bizarre turn. After the Parliament raised the Mundhra issue, Feroze Gandhi confronted Pt. Jawaharlal Nehru, who was India’s then-prime minister.He questioned if the LIC had utilized policyholder premiums to purchase shares of these Mundhra-controlled enterprises beyond their market value. A former Bombay High Court judge named M.C. Chagla J. was asked to investigate the claims in order to corroborate them. Several stockbrokers testified during a public investigation that Mundhra’s falsification would have been taken into account if the LIC investing committee had been contacted. The investigation of the finance secretary and two other officials were then decided to be necessary. However, despite his best efforts to avoid the situation, the previous financial minister was ultimately forced to retire from his position. This event resulted in significant losses for the Nehru government. As a result, Haridas Mundhra, who was also charged with additional offenses like failing to pay income tax on time, was taken into custody. In March 2019, the PMC Crisis occurred after the HDIL company missed a payment of 25 crore rupees or 30% of the total debt borrowed. The bank disregarded RBI instructions to designate these loans of the HDIL group as non-performing assets in 2017–18. The bank provided HDIL with a new loan of 96.5 crore rupees in August 2019 as a result of the Bank of India taking HDIL to NCLT for repayment. An executive director who served on the HDIL board from 2009 to 2015 held a 1.91% share in the company but then sold it all and resigned, committing fraud. After then, HDIL received a loan from PMC and delivered it to the Reserve Bank of India. Since the RBI’s rules were disregarded, collaterals were used to cover the entire 258 crore loan. Since it involved public funds, the RBI retained 1,000 rupees that might be withdrawn after six months. However, a withdrawal of 10,000 rupees was permitted after more persuasion. The most significant of them is the PNB Crisis, in which Neerav Modi obtained a loan from a foreign bank using a forged letter of understanding from PNB and promised to pay it back if he missed the payment. There were 8 separate fraudulent and deceptive Letters of Understanding used. There were 11 crores of rupees worth of loans obtained between 2011 and 2017. These foreign banks were in fact branches of Indian banks that had expanded abroad. These banks then turned to PNB for reimbursement, but PNB informed them that all of the Letters of Understanding were bogus. Fraud was perpetrated, and CBI was notified of the situation. In this fraud, counterfeit letters of the agreement also included bank employees. In this instance, two officials and their families were involved. Neerav Modi, therefore, traveled abroad when the scandal occurred. Vijay Mallya fled the country as well after being charged with fraud and money laundering. In order to prevent the collapse of his Kingfisher airlines, he accepted loans totaling Rs. 9,000 crores. The Fugitive Economic Offenders Act also applies to him. Different Types of Corporate Frauds in India Misappropriation of Funds: Payment fraud, accounting fraud, and deceiving investors into investing by sharply boosting the

Corporate Fraud in India & Outside India under Companies Act, 2013 Read More »

7/12 Extract – Record of Right in Maharashtra 

Government Schemes / /

7/12 Extract or Record of Rights is the extract from the land records register held by the Revenue Department of Government of Maharashtra. 7/12 extracts contain complete information about land property in rural areas. While property cards are related to land property in urban areas. 7/12 extract document is an important indicator of the legal status of the property (agriculture land). In this article, we will see about 7/12 Extract of Maharashtra Land Records in detail. Accessing land records is an essential aspect of property ownership in India. In Maharashtra, accessing land records has been made simpler and more convenient through the Bhulekh Mahabhumi portal. In this blog, we will discuss the various uses and benefits of accessing land records in Maharashtra through (MahaBhulekh) Bhulekh Mahabhumi, how to apply for records of rights, what documents are required, and how to check the application status online. 7/12 Extract or Record of Rights (ROR) 7/12 extract is also known as Saat Baara Utara, Record of Land Rights. The 7/12 extract or Utara is an extract from that land register and includes complete information about agriculture land in a rural area of Maharashtra. 7/12 Utara serves as proof of ownership of the land.  7/12 extract is named after two forms that are used to collect information for this extract. These forms are prescribed in the Maharashtra Land Revenue Record of Rights and Register. Form VII- Village form 7 includes detail information about the owner of land and rights and liabilities of the landholder. Form XII- Village form 11 includes detail information about agriculture aspects of land such as crops produced on the particular land, type of crop and cultivable land. Why it is called 7/12? The term “7/12” is derived from the specific format used to present the land record information in the document. The 7/12 format refers to the numbering system used to organize the records within the document. In the traditional format of the 7/12 extract or Satbara Utara, the document is divided into different sections, with each section assigned a specific number. The numbers 7 and 12 represent two prominent sections within the document. Section 7: This section contains information related to the landowner(s) and their respective shares in the property. It includes details such as the names of the owners, their percentage of ownership, and any changes or transactions regarding the ownership. Section 12: This section provides information about land cultivation. It includes details about the type of crops grown, their area, and the corresponding agricultural revenue. It also covers details related to land classification, boundaries, and other relevant agricultural information. The numbers 7 and 12 have become synonymous with the document itself, and hence, the term “7/12” is commonly used to refer to the land record document in Maharashtra. Information Included in 7/12 Extract The 7/12 extract contains the following information about the land: Survey number of land Area of the land – Fit for cultivation Changes in ownership Mutation numbers Type of land (agricultural or non-agricultural) Type of irrigation (irrigated type or rain-fed type) Details pending loans for buying seeds, pesticides or fertilizers Information about the type of crops planted in the last cultivating season Details of pending litigations Details of tax paid and unpaid Uses of 7/12 extract or Saat Baara Utara The following are some of the significant uses of 7/12 extract in Maharashtra: Proof of Ownership- In rural areas, 7/12 extract is used to check the ownership of ancestral land or any other land. Land type and Activities- 7/12 extracts can be used to know about the land type, and the type of activities carried out on land. Agricultural Information- Saat Baara Utara is an important document to get information regarding the agricultural aspect of the land and its surrounding areas. Property Sale Transaction- 7/12 Utara is required at Sub-Registrar’s office when the sale transaction of land is being done. Bank Loan- To raise farm credit or to get a loan from a bank, 7/12 Utara should be submitted. Civil Litigation- The court needs land record proofs in case of any civil litigation. 7/12 extract can be produced for this purpose. Who Can Apply for Records of Rights (7/12 Extract) in Maharashtra? Any property owner in Maharashtra can apply for the Records of Rights (7/12 Extract) document. This document provides information on land ownership, the name of the landowner, the survey number, and other details about the land. How to Apply for Records of Rights (7/12 Extract) in Maharashtra? Applying for the Records of Rights (7/12 Extract) document online is straightforward. One must visit the MahaBhulekh (Bhulekh Mahabhumi) portal and select the ‘7/12 Extract’ option. Then, the applicant needs to provide details such as district, taluka, and village. The system will then generate an application number, which the applicant can use to track the status of their application. What is the Significance of Bhulekh Maharashtra 7/12? Residents of Maharashtra can access important land records through the Mahabhulekh Maharashtra portal. The 7/12 document, also known as Satbara Utara, plays a crucial role in establishing land ownership and offers various benefits to landowners and farmers.  The Maharashtra Bhumi Abhilekh portal maintains and provides access to land record holdings, contributing to efficient land management. Proof of Ownership: The 7/12 extract serves as a legal document confirming land ownership. It includes the names of owners and their respective shares, providing essential evidence during property transactions, disputes, or legal matters. Cultivation Details: The Bhulekh Maharashtra 7/12 extract contains valuable information regarding land cultivation. It specifies the type of crops grown, their area, and the corresponding agricultural revenue. This data aids in assessing land productivity and agricultural potential. Loan and Credit Applications: Farmers rely on the Bhulekh Maharashtra 7/12 document when applying for agricultural loans, subsidies, or credit facilities. Financial institutions and government agencies utilize this record to verify land ownership and evaluate the creditworthiness of borrowers. Land Development and Planning: The land records maintained through Bhulekh Maharashtra 7/12 contribute to land development activities and urban planning. Government authorities leverage this data to identify land parcels, determine land

7/12 Extract – Record of Right in Maharashtra  Read More »