let's start IBC so we'll do the basics IBC is very important 8 to 10 marks minimum page number very very important we'll finish it off will take some time couple of hours will spend and will finish 184 in that ppirp part I will give later that is hardly anything pprp also they may ask but main IBC if you figure out pprp is nothing so yes 184. so basically guys section 184 sorry page 184 this IDC code that is insolvenge and bankruptcy code the fact that they've used the word code itself means it's a codification of all the laws we had insolvency Provisions in companies act in Partnership law in what do you say in rdd BFI recovery of debts due to Banks and financial institutions act so many laws had insolvency Provisions I had to merge everything and make it into one problem with other laws were used to be that if I was what do you say uh I I sued you in some certain court of law one other court used to put a stay order that is through a debt recovery terminal through rdd BFI act used to put a stay order there was one more lock there is one more lock called surface securitization and reconstruction of financial asset and enforcement of security interest act like a rap song it is right so that now let's uh see a rap song surface full form and then so if you see surface he also is a problematic area because again there if I put a case against this company somebody else will put a stay order saying that no I have a right over the asset the problem was always like this there was no resolution resolution is to take 20 25 years so to put an end to it rather than insurance and bankruptcy act they came out with the insolvency and bankruptcy court so predominantly if for example an individual like you did not pay me salary for almost four or five months let's say salary due is 5 lakhs I could have only gone to civil court and I don't know your financial status what is your status I don't know so to ensure that all these things are covered whereby even an employee can sue the company but when their initial signs of distress in the company even employee can sue the company that's why insolvenge and Bankruptcy Court came what's the difference between insolvency and bankruptcy in Seoul when C is for companies bankruptcy is for individuals and partnership firm insolvencies for companies bankruptcies for individuals and partnership firms for individuals and partnership firms it is not yet notified in this if you borrow thousand rupees also and you don't pay thousand rupees that other person can you know sue you under IBC for thousand bucks that is this part on the other hand if it's an insolvency case company it was one lakh before now they have made it one crore one crore act is decision made passed into law code is collection of law acts already passed into law insolvencies for individuals known as bankruptcy organization insolvency and for non-corporate it's called bankruptcy for corporates eventually it will go into liquidation so this code will apply to any company incorporated under the companies act or under any previous company law previous law will be all the old acts under companies act any other company governed by any special act LIC UTI Etc any LLP also yes LLP also can go for IBC any other body corporate Incorporated notified by central government so I'll explain that full procedure quickly what happens is three types of people can apply to nclt one is financial crater operational Creator corporate data corporate that means company itself for example if I take Kingfisher Kingfisher when Kingfisher happened all this can happen this was not there because of that only this law was actually from one of the main reasons so there if Kingfisher I need not have waited for Kingfisher to go down the drain for so long when the moment I feel Kingfisher is not doing well then only I could have applied because that time the limit was how much 1 lakh so operational crater means employees or anybody who has given goods and services if Kingfisher has not paid employees their salary one lakh could they have gone for IBC yes now the limit has been increased to one crore so if all employees put together have not paid their salary one crore can I go to IBC yes in my abc Financial crater is a person to whom a financial debt is old financial debt means what any money loans Etc corporate data the company itself will feel that no I before anything can happen now I am only telling I do not have the money so please comment do the needful so these three people can apply to National company law Tribunal any of them and what should be the minimum default one crore default must be one crore nclt after listening to the petition what will they do they will accept the application once they accept the application so in all other laws the debtors will still be in possession of the company correct in this particular case the creditors will walk in and they will take over the company so this debtors that is the board of directors will be suspended shareholders powers are suspended and the creditors will take over in the craters which Creator will take over Financial crater operation greater Financial grade operation Creator cannot enter it enter you will just you know he can apply mind you can apply but he cannot enter this process of taking over so one taking over means they'll form a company and that company sorry they'll form a committee and that committee is called COC community of creators the best part about IBC why it is a code is the moment nclt opens its doors saying that let me open the door of the company also you go there and do your procedure I should be obviously uh be given a free reign and some breathing space so the beauty of nclt is the moment IBC is the movement they open this procedure there is something called as moratorium during our childhood used to pay that statue game so like that that nclt will tell statue which means under rdd BFI act high court or any civil court or you know surfacey all those loss effects of the other people who are already loss are going on under that cases is going on if they bring a stay order if they stay order hold any value no they'll say statue stay order will not hold any value they will just stop there so rdbfi high court Etc it will not do anything it will just close there so it is called moratorium it is called moratorium basically nobody can sue and the thing is no further suit also will be instituted but the beauty is this entire procedure will be there for 180 days plus one time extension of 90 days but overall including the code delays 330 days you have to finish it it's not 180 Plus 90 that 270 is already there plus 60 days extra no that 60 days is only for code delays code delays that's it now during this 180 Plus 90 this entire process is called corporate insolvency resolution process what should I do the COC basically nobody will go inside like that directly they'll take a representative that representative is called as a in interim resolution professional and once you enter the company here this fellow will be called as I mean COC COC will appoint a person called resolution professional the resolution professional now his job is to find a resolution how will he find a resolution he will say rather than allowing this company to go down the drain let me now invite new people to come and take over so he will give all the documents saying why the company can be taken over so that is called as information memorandum you will give out this information memorandum to everybody and then say I invite you to express your interest if you want to take over this company so he will say inviting here by expression of Interest so all potential companies who want to take over can give their expression of Interest whereby they want to take over the company and along with their expression of Interest they will give something called as draft resolution plan what is my plan for Kingfisher how will I take over they'll give like that many people will give the plans ultimately you can decide the plan COC COC will decide the best possible plan what all should the plan contain first of all it should contain insolvency costs how it will be then how will the creditors be paid Financial Credit how will they be paid operational credit how will they be paid will they be paid full how much how much of a haircut I should take haircut means you know there's a hundred percent I will not get money so whether I can I am okay with 50 60 it's again a compromise that negotiation so that is what they will decide and then they will vote generally in the COC voting 51 is for normal items 51 percent is for normal items then 66 percent is for what special things 66 percent is for special things we'll see then some cases 75 percent is also there in some cases 90 percent is also there but this is what they will ask you know in the exam you have to be careful about this so that's all after that this entire process should happen when within 180 Plus 90. using all those draft resolution plan I'll go to the COC I means resolution professional will go to the COC and say Sir these are the options you choose so they will choose by passing a 66 percent majority there it doesn't end final approval should be granted by whom nclt nclt approach over cirp ends if nclt disapproves or for that matter the COC only rejects all the plans then winding up the winding of proceeding is called liquidation liquidation so cirp ends liquidation Begins for our syllabus we have what all application is also there cirp is also there and liquidation is also there all the three things are there now best part of the story is here Vijay mallya sends his son Siddharth Malya to buy me buying the company through me that that happened so is it allowed no that's why one Arun jaitly introduced 29 capital a eligibility criteria for resolution applicant the person who's applying that expression of Interest who's giving is called as a resolution applicant so that fellow has to be eligible under 29 Capital it now this is all for big big companies okay no problem small small companies correct correct the thing is nobody will buy that company I was uh I was a company who I was a person who started a company assume then I moved on to other companies I exited this and but this is my very uh you know important company that I started now I realize this company is not doing well so what happens I will and the company is you know going for ABC problem is nobody wants to buy who will buy any small company I will go back and say Sir that is my I started that company I moved on to other things I was busy here I appointed others they did not do properly I am not a defaulter sir they may be defaulters but I'm I'm definitely a promoter I agree so can you please allow me to take answer is no why 29 capital A is there you are are you a eligible resolution applicant no you're a promoter ex-promoter not a load so the especially this used to happen in msme micro small medium Enterprises for those companies msme's special Provisions now before going to this entire process why why don't we make a pre-packaged resolution correct that is nothing but pre-packaged resolution PP PP IRP prepackaged insolvency resolution process PP IRP so that is predominantly only for msmes there is a small off topic this also they may ask here and there they ask okay but it's ultimately it's the if you understand the main structure and all this becomes very easy right so that is the pprb this part you know I'll give you a video it's always a one hour video is there because we have to do other things as well so this anyway this part is very simple guys once you understand the full procedure properly then it becomes very simple let's see so that is the overall view of the entire section moving on here any company incorporated into the companies act done done all this done this part we will explain in a while partnership form and proprietorship firm it will also apply individuals f and g as I told you not yet notified not yet notified it is not applicable for partnership form at all now as of now but it will come in the future for sure so it is a very very Niche area for you also to practice in superb money is there in this whether you want to practice as a result resolution professional or simply as a consultant also giving advice as to how to go about good money so regulatory mechanism ultimately just like sebi RBI here the entire regulation is handled by a person called or by a entity called ibbi whenever we use the word bold in this law it is not board of directors it is ivbi insolvency and bankruptcy Board of India under it you have insolvency professional agencies icsi ICA icma and all those things where the agencies conducting the examination and I told you about resolution professional interim resolution profession Etc who are they they are in solvency professionals so caca size double A lawyers all of them will sit across the table will of course write the examination it's the same whatever this new syllabus whatever syllabus you have same thing is that little bit extra so you can write that examination you'll become an insolvency professional and tomorrow nobody should give a loan to a person who's already taken loan and was not repaid to ensure that happens your entire history loan history repayment history everything is now I it is now obviously stored in a large company with 500 core Plus turnover called IU information utility so they store your information you'll get a number tomorrow this company if you put that number I'll give the entire history of how much default Etc so it will be better this basically preventive measure tomorrow I should not give loan to a company who cannot doesn't have the appetite to repay properly doesn't have the risk appetite so to speak that is one part and adjudicating authority adjudicating authority for corporates LLP the other part will explain this is the only single window a single structure nclt ncl80 Supreme Court no high court and all nclt ncl80 Supreme Court special bench of IBC this is for individual this has not been notified right so it is DRT that recovery terminal drat and Supreme Court that is what it is the entire process I've already told so what we need to do here is understand Financial crater operation Creator corporate data all these things and check what is to be the what is the process Etc and if you see minimum amount of default here how much is it one lakh one lakh from one lakh it has become one crore during covet the onset of covet obviously people will not be paying right so that's why there was a one year relaxation should not get confused with this limit of one crore limit of one course for default but any defaults which are happening on or after 25th March 2020 for one year 25th March 2020 till 24th March 2021 all that entire one year any default more than one crore is what ignored means you cannot go through IBC you cannot go to CRP cannot apply ABC not possible what about the defaults which happened before 24th March 2020 yes you can but now that one year period is over now can I open those old cases no it is like a permanent relaxation mind you this is not equal to this this is also one one crore only but that one year is for you know this concession itself this one cross Still Remains after 24th March 21 all defaults Etc other in the exam okay to see the date of default if they have given if they have given any time between 20 you have to write the normal procedure but as a note you should write this for that specially one or two marks will be given we should be very alert as to if at all they have given date of default so the default Falls between 25th March 2020 to 24th March 2021 then no yes no IBC will apply there for that now before we go into this procedure we need to understand who's a financial crater etcetera and all that and if you see this applicability of the code okay we saw all these things will the code apply to what you say Banks can I do IBC of banks no they said financial institutions are not counted you cannot do IBC of banks that that will be the end of it then you know if banks go into IBC gone so that's why they say no not possible but can I do one question that asked they wanted to do an IBC offer nbfc non-banking finance company and they do it so though financial institution includes an nbfc but then there's a separate Clause where they say can I do an IBC of an nbfc yes one second is given here these are some miscellaneous points here page 209 the sent section 227 the central government May in consultation of consultation with the appropriate financial sector regulator notify financial service providers which may go through cirp so this is Divan Housing Finance limited was one of the practical examples where it went to cirp so with such companies can go actually so asset size 500 crore or more you can just write down your asset size 500 crore or more as per the late test audited balance sheet those companies they are notified companies they are the notified companies any nbfc with an asset size of 500 crore or more can be can go through what corporate insolvency resolution process even though it's a financial service provider IBC does not apply to financial service provider financial service provider can apply for IBC against other companies but other companies cannot apply for IBC against financial service provider but the exception is this 227. your asset size is more than 500 crore I can apply for IBC first exam the best example I can think of is diwan Housing Finance limited the one Housing Finance Limited so coming back with this Basics let's slowly begin of the first one one by one corporate inside so basically we have to discuss all the three procedures guys once we did the introduction then the cirp then liquidation how can apply from one by one occurrence of default will be a financial crater Financial crater will apply so Financial crater is anybody who has given money for the time value of money whatever is expended it is called Financial creditor but the thing is anything for time value of money etcetera so there was this uh company JP group that was the builders AP group they had one subsidiary JP infra Tech or whatever they built one you know skeletal structure dream project and they have taken the almost around 25 000 crores from 32 000 home buyers middle class people so 32 000 people 25 000 crores they have taken telling that they will do so what they did they diverted this funds to the holding company and holding company invested elsewhere many many places this was just a skeleton structure and it was called some JP dream project or something so this home buyers came and said was what is this you have not given me the house even after so long then they said I will apply for iebc against you so JP infrastructure said but we've already given you what you wanted like no how you have you have you know where is my house you said see how was your dream no say the name of the project dream project I already given so the thing is the moment they went it's true story JP emphasizer you do whatever you want are you a corporate data no I am a corporator JP group is telling are you a operational Creator no you are not an employee they are not the government you have not given any Goods you have not given any Services third one are you a financial creditor no you have not you have given money but is it for time value is it for interest is it alone no you have given an advance advance is not covered here advance for the supply of goods it is what you have given actually for me one house is a good stock for that Advance you have given that is not considered as financial debt itself so that's why after this particular case only what happened was the lifted it went to Supreme Court pil was filed they lifted the corporate well and made JP group liable after making this JP group liable by that time JP only went for IBC corporate data but who was the big loser these people if they had done dream yeah if they had done the IBC slightly before when initial signs of discretion they were transferring only and when one month delay also they had done it it was if there's a possibility then they could have saved some money Because by the time this happened the money was completely exhausted somewhere so the problem was that's why they changed the law now they said any person a lot under rera if he has given allotti under rera which means should apply rera will apply only if it is more than eight homes correct eight flats or how many square square five thousand at 500 square meters or whatever it will translate roughly to 5000 only so yes square feet so then only era will apply so all big big projects small houses two three houses seven houses and all if it's there era will not apply so large spaces obviously then if you are an alloty then obviously it will be deemed to be what financial debt and you are a financial creditor that was the amendment made quite some time ago but yes Financial crater then application such Financial Credit anybody homeowner also now homeowner Financial Creator will make an application to whom adjudicating who's the educating Authority National company law Tribunal nclt Financial crater can be any you know SBI all those people also right SBI the main job only is to give loans correct they'll keep giving so yes application or make an application now then they'll ask what all should be there there should be a record of default name of the resolution professional proposed as an interim resolution professional the interim means because others have not joined that's why you're an interim professional other information now once you go to nclt nclt within 14 days should pass an order whether default has occurred or not occurred if it is not occurred no they will give seven days time to rectify the defect here actus is the word shall within seven days here also act uses the word shell within 14 days both are mandatory obviously but then one quote they only took some 30 days to pass the resolution nclt then when this fellow they gave seven days he poor guy felled it in 10 days so they said reject it because you didn't file on time this fellow said bro you only took print 30 days correct then it went to court I'm not joking this case went to court based on question of law I took 10 days you also delayed no so nclt went to ncl80 ncl8 nclt First it went to the nclt wing where they did this adjudicating mechanism they said no it's okay I you I will reject went to ncl80 ncl80 also told the same thing we can take whatever we want you have to do it within seven days then it went to Supreme Court Supreme Court said was everything should be equal so if you here it is May here also it is May but do not misuse these provisions so if it is genuine reason you can do so so that was in a Supreme Court decision Surendra Trading Company Surendra Trading Company versus Mills it is not mandatory what is not mandatory within 14 days is not mandatory depends on the facts of the case so default occurred default not occurred admit the application reject the application if you have admitted rejected the application seven days time is given for you to rectify I'll say these are the things are not there please furnish within seven days immediately it's all timeline based here if the CRP has begun then the moment you accept the application I will open the doors of nclt cirp will begin corporate in solvency resolution process the 180 days will begin from that day if the IRP is not appointed then cirp will begin from the date of the appointment earlier there used to be a law where IRP was appointed within 30 days and also first of all 180 days in that 30 days only if you take to open that flow that's why they say no the moment cirp begins that is the day you should appoint the IRP also no wasting time now the thing is can Financial crater uh jointly apply or singlely should do joined and if can I do it with others and if for me there is no default actually but for you guys they have not paid can I still join the petition all that is a yes so Financial Credit either by itself or joint with other Financial craters can do so or CG notified person is what they say who are the CG notified person in 2019 they have given first is Guardian so basically if a minor is holding the uh it has given has given some money or anybody else whose incapacitor is given money then the guardian can apply on behalf of the minor executor or administrator of an estate of a financial crater who's an executor when somebody dies so the will says it will pass on to the Sun so before that it will go to a lawyer who will execute the will so he is called as the executor so until it is still being passed on basically I have a father has given some 10 crore to a company and now he is he has passed away will the Sun or the legal here have a right over that and crore yes so now through the execution executor it happens this is a separate area only I'm not kidding it is called creation of trusts for higher net worth individuals because they have so many businesses so many things so there's a trust from one of my friends Works in that so his job only is to go to this High net worth individuals and convince them to create trust as to how once you die how it will be passed on to various people that also is an interesting area which CS can work on right so executor that's an Executor administrator is what administrator also is the same only when a person dies father dies so that is transferred to a son so he is ready he is ready to take over then one more fellow Will Come randomly after death he'll say I'll say I am your brother from another mother yeah right I'm your brother from another mother literally yes so what do you think then boss your father full he was awesome five other people will come now wait and dispute correct dispute so it is called administrator and when a dispute is there that a state is taken over by administrator so that is this that's a difference executor and administrator administrator dispute is there in the will all the property disputes are all lying with administrator only even in Bangalore if you see the moment a land is you know somebody dies land somebody else takes over they'll wait for the building to be constructed then they will come you see many buildings outside Osos is written you know that's called what outstanding suit so everywhere many of these newly consulted buildings many of that you see OS will be written and some number will be given that is outstanding suit so that's why Rivera is one more area where you can really mint money right so these are some of the areas which you know all these things law I say is removing I'm just saying which means you guys have the benefits in paper 60 all is rare and all comes and these are all really money minting areas IBC also is part of the deal so basically they are asking you to study it later which is stupid which anyway will study here in depth right so that is why I tell it's not because it's my subject genuinely that is why I'm telling because it is completely logicless their removal what they're doing completely bereft of logic it is shock it is really amusing for The Institute to actually do whatever they are doing they are degrading the profession which is sad right executor or administrator of an estate and unfortunately students are suffering it is because of their ego that new president fellow wants a role president whoever it is wanted this law to come this new syllabus to come nothing is ready only nothing was actually ready you see now recently only you only did not know whether you guys are okay a number fellows didn't know either number or to write new syllabus old syllabus very sad it is you also will be under attention what if I fail happens now obviously what if I fail should I write new syllabus or old syllabus happens they could have done this long time back only or they should they could have actually announced it after you know everything was set it was just urgency under my presidentship this new syllabus should come that ego unfortunately nothing can be done very sad next trusting including debenture trustee uh then that is this is what depends a trustee if you are holding any debentures there will be a person who will look after the debentures you have lent money to the company only right that is a financial debt so depends are trustee on behalf of all the defense holders they can do so next a person duly authorized by the board of directors of the company so one company also can soon one company would have paid one more company money so that company wants to file IBC how will they file through the either board or a duly authorized person that so a default includes default and respect of financial debt or not only to applicant Financial crater but to any other Financial crater also is what they say do you need a break okay so 15 minutes 12 15 will start then it will go up to 130 okay all right guys let's begin let's continue so first is the second foreign by operational crater first there should be occurrence of default the only difference between here here I directly apply to double a in this I directly apply to double a adjudicating Authority whereas here I will first give something called as a demand notice demand notice demanding repayment of operational debt first I'll give a demand notice to corporate data operational crater will be what you say will be your employee it can be a person who has applied Goods given certain services or it can also be a central government or state government or any Authority including your local Authority for example if you have not paid electricity bill bestcom then also they can obviously their operational craters they can go under the section they will give a demand notice demanding repayment of operational debt and they will give an invoice saying that boss I will give you 10 days time in 10 days time we should return the we should repay the money I have already sent you so many emails you have not responded to so many emails so hereby I am giving you a demand notice you must demand notice I'm demanding repayment of operational debt and then I am giving you an invoice as well you need to do it so I will go to the corporate data 10 days time in 10 days time I will intimate operational creator has to you know have to intimate the operational Creator the corporate data should intimate the operational crater what two things first of all basically for example if I am a company and Airtel has Broadband has given me services and let's say I'm a huge company the windows B is beyond one crore bill is beyond one crore and uh what do you say the I have during the course of the month I've clearly told I'm not happy with your services internet is bad so if you do not rectify the problem then I will not pay the amount I've already told there's already a dispute so still they have the audacity to send me a IBC notice saying that if I don't pay then they will come and take over my company that's how it is so then I will have to reply saying that was there is already a dispute there's already a dispute between me and you how are you saying that you know I did not respond I did not pay I have already told you before this notice only I will not pay because you have not given me services the law used the words existency existence of dispute and its pendency pendency means pending in the court of law so there was a case law kirusa versus mobilox which is quite famous and there was many times this particular case law kiruses mobilox in kerosa versus mobilox basically uh mobilox was a company which was which uh what do you say gave this services for Star Plus for this uh show that is uh natural here whatever one of those Dance India Dance or whatever the one of those shows the game Services of collecting the data voting mechanism where the people can vote right so that this is what mobilox did so mobilox hired kirusa for the creation of the software user interface Etc and they had a deal Star Plus will play pay mobilox and then eventually uh you know it will uh they will take Russia and settle the deal so now when mobilox got the money they did not pay kirusa obviously approached the court anyway the gist of the story is one company said you already what you said there's already a dispute and you have not you have breached some guidelines so between both Heroes and mobilox I said your breathe some guidelines that's why I will not pay you this money so the other company went to court and there what happened was in the court it was decided nclt said existence of dispute and it should be and its pendency only if the court case is pending only then the operational credit R can escape under the section but it was very unfair because for me for example if Airtel Broadband puts a case against me I have been sending a letter saying that I'll not pay you for me to protect myself under IVC it appears that not only there should be a dispute which is a dispute but also it should be ending in the court of law as if she went to Supreme Court on one word and Supreme Court said and should be read as r right they said it is observed for you to have a dispute and the fact that it should be pending I will not allow that to happen otherwise then in every small case I have to put a case to protect myself against IBC no so the framing of the section was perfect after all that's why IBC Amendment act also change the word and to or So based on kirusa versus mobilox that is supreme court judgment existence of dispute or expendency now either you say that there is a dispute or you show that there's a court case pending or you just repay and close it this is again one more way of repayment other than waiting for you know my company to go down the train repay and close it so all these things are there and it is not received by operational Creator what to do again I'll basically in 10 days you should give me two things three things one either you tell there's a dispute or you show me One cases spending between me and you then I'll back off that's what the operational credit are selling or is telling at least repay the unpaid operational net over chapter close but nothing you do then what will you do I'll make an application to nclt I'll give the full invoice and in a feed of it again not declaration a bit of it saying that there has been no communication in these 10 days from operational Creator we have not received anything and a certificate from all financial institutions saying that no money has come from the operational crater can I put a IBC case against a foreigner foreign company no I cannot Sue any foreign company this will only apply to companies in India reverse case kind of foreigners who an Indian company yes Reliance it happened no Reliance Reliance Communications this guy uh you know Ericsson Ericsson sword uh Ambani Anil lambani so it went to insolvency also that's why he was almost in a soup but the big brother protected him so if you see that is what happened so the thing is can Foreigner do so yes but now you have to take a certificate from the bank saying that no money has been received by Ericsson and when they opened the act and saw the definition of financial institution it's a financial institution must be a financial institution in India Ericsson has no bank account in India so how can I give you a what do you say bank statement saying that I have not received any money from Manila money when there is no bank account only in India so this went to many such cases were rejected imagine like many such petitions from foreign companies were rejected because they did not have bank accounts in India and they went to the uh you know this uh Ministry and said what is this nonsense what is this certificate that you are asking that's why they changed the law what did they make they had added towards if available based on this four months question three times the worst right that's why it is very very intricate very easy it is very intricate if available three times asked in the exam so basically certificate from financial institution need not be there only if Available Auto give and other information also a copy of the letter of IU any other proof also I need to give all these things I need to give and then it will be given to the adjudicating authority in educating Authority will pass an order in the order I will either admit the application or I will reject the application the moment I admit the application cirp will be commenced commencement of CRP I will communicate to operational crater and corporate data I'll admit the application then reject the application cirp will begin communicate to operational Creator and corporate data that's what it is finally that's all there is to it apart from that so one part of the story is the financial crater other part of the story is operational creator next admission or rejection of application so when will the uh application be admitted when the application is complete and the operational grade data has now not paid not not received any payment as such the writer has not been okay invoice or notice for payment has been delivered by operational Creator there is no notice of dispute also and there is no dictionary proceeding against the resolution professional then you will admit opposite is rejection very simple this is all easy guys no problem moving on yes this is by the corporate data or no this is Vijay mallya himself Kingfisher will say before you can even say that I have not paid I am only telling I will not pay you that is this that is corporate data saying that which unable for me to which I'm unable to actually function and I'm unable to start the company or continue with the center company so I request you to comment take over corporate applicant will apply who is a corporate applicant here corporate applicant will be corporate data or since LLP also it will applies right so member or partner of the corporate data or any individual who is in charge of managing the operation CEO CFO all these people who are authorized they can also apply on behalf of the company this is for LLP member or partner of the corporate data assuming it's an LLP so insolvency will apply to llps as well as companies here I should give the books of accounts here I should give that the resolution professional is proposed to act as an interim resolution professional and one more thing is in Winding up a special resolution had to be passed in Winding up if I want to end up a company in companies act here there was no resolution that was there corporate applicant that is board of directors themselves went ahead unilateral decision went for IBC so shareholders said we also need to have a say when we have a say in uh companies act why not have a say here that's why this was amended and special resolution was added so application should also be made by a special resolution given by the shareholders this is what happens there is the application part there is the application part following categories of corporate datas are not entitled to file an application under Section 11. so if you are undergoing cirp already can you again stand in the line and apply no because at the carp we completed then you can do so second you have completed carp law says give some breathing space how much is the breathing says minimum 12 months minimum 12 months before 12 months only you are putting one more application no let the new community has taken over let it try to revive your company revive you then you can see what can be done if it is not done so but corporate that are violating the term of the resolution plan the resolution plan given by the applicant this corporate data has not followed only the company has not followed and fourth one if they have told already your resolution there is no point let's go for liquidation then you cannot come back and say let's go for resolution not allowed so this was misinterpreted by many courts what used to happen was one person is already undergoing cirp one more uh company is very very happy it's the best part of the story was this company has given this company loan the company undergoing cirp has given another company loan this company has not paid back because like that it has done to many people because of non-payment they have not got their money back now this company is going into carp basically other companies are all fine I am going to CRP so these companies which went into cirp they went and applied to this company stood as a financial Creator against this company and applied under IBC against this company many courts took this down why it said corporate data is undergoing say RP cannot file application it was obviously wrong it went to court actually that's why Amendment came in 2020 what is the amendment here an explanation was added a corporate data can initiate carp against another corporate data against another corporate data a good provision explanation was added because this wrong interpretation was being made power limited it was the first case where they said this uh there if you are undergoing CRP you cannot put a grp case against others no not like that the intention of this law only is different time limit as discussed 180 Plus 90 maximum of 270 days overall days 330. it can be done only once with 66 percent of voting shares it is 180 Plus 90. the cirp shall be completed within 330 days from the insolvency commencement date including any extension and including time taken in legal proceedings the law says shall mandatorily follow shall mandatorily follow within 330 what do you think monetary or discretionary so it went to that Sr steel case Sr steel case one of the greatest judges you know rowington retired he also had put a in pmla I'll discuss about him brilliant law brilliant judge so he said who the hell are you to tell me that I have to finish in 330 days they told government like what do you say shall mandatorily this is it takes time Justice takes time so in India there are so many cases that and have to hear the cases properly it is not some Fast Track just this year right it is not a summary Trend so in restorate there's a question called summary trial summary trial means what no trial needed like for example if you get caught without helmet will they take you to the court no address summary there only sir why didn't you answer sorry forgot okay close close the matter that's how it works summary Trail so pay the penalty fine whatever close so that is what it is that's called summary trial without going to trial what is regular trial then that was also one question link to this this was one question can you can the courts go for a summary trial yes correct if the imprisonment is less than three years there are two years the code can go for a summary trial but even if it is one year or more if you feel that summary trial is not enough or not good enough then you can go for a regular Trend that is the one more miscellaneous question that can come anyway coming to this year here also they're telling who are you to tell me mandatory you should follow under 330. so Sr still stuck this down they said this is not mandatory it is discretionary but if you see the wordings it is still mandatory it should be read as discretionary but nevertheless in your exam you can say within 3 30 days it has to be completed including any extension of time in legal proceedings legal law will take its own time you cannot say that and the average time period only is around 430 500 600 days but it is better than normal other cases which will go on for seven years eight years ten years yes this is what it was all these things were there then withdrawal of application yes if you apply again is in the interest of Justice if let's say SBI has applied even like an out of court settlement they can go to them and say sir I will pay the amount kindly withdraw kindly withdraw it's fine I will you withdraw but then we will ensure that everything will be paid on time so adjudicating Authority can approve withdrawal anything admitted under seven nine or ten an application made by the applicant who's the applicant obviously the person who applied here but with the approval of what 90 voting share of the committee of great Arts COC is already formed so when can you withdraw the case after COC before expression of Interest after COC before resolution plan or after COC before the first resolution plan comes to the company or when can you do it even after expression of Interest yes there are many regulations but the new regulations say yes you can withdraw even after what expression of Interest they can withdraw any time any time before what obviously before the resolution plan is approved any time before the resolution plan is approved logically yes obviously that is withdrawal here it is 90 percent most all normal cases 51 percent special cases like appointment of IRP RP 66 percent and withdrawal cases ninety percent ninety percent is what you need to see moratorium moratorium is suspension of all the activity in terms of Outsiders educating Authority by passing an order will give a moratorium from the date of order to completion of cirp everything will stop there any case against you will stop so what had happened was in one case you can ask your parents LML scooter was more famous than Bajaj LML was chetak kosami I don't know the name right it was more famous than Bajaj so LML was the company but it's still there after that Bajaj took over market share completely and LML lost its that was the beginning slowly beginning of the end for them and then eventually they by now LML from SBI so SBI gave a loan sbiota will keep giving like that his actual case only almost some whatever crores have loan they said boss against this your director his name is Sanjeev sriya Sanjeev shriya you should give a guarantee you should give a guarantee no problem so LML obviously did not pay the loan so SBI went to this rdd BFI act recovery of debts due to Banks and financial institutions act under that the DRT is added recovery terminal so they said was okay I agree these fellows have not paid do one thing recover the money from sanjishriya the moment sbis SBI means sleeping Bank of India whenever you go to the bank already there will be a break correct they are never working always break so if you see it's interesting actually and it makes a lot of sense also the logo of SBI it's a very nice logo right in this it's like a pie chart in this this is lunch break right it is lunch break and this is the only time that they work so lunch break they're sleeping so when this happened they were sleeping so suddenly they woke up and they finally said you know by the time they came you know LML went to IBC they only went what corporate data and it was accepted also so once it is accepted what happens moratorium so when SBI came to Sanjay shriya he said statue because actually happened not kidding the amendment happened because of this case only when SBI came to sanjisra he said statue SBI said bro what statue what statue means statue only he said it is linked to this LML he said statue is for LML he said no statue is for what assets LML no LML I agree but LML who you gave money to me or LML LML when LML is going to ABC and on under those cases statue has happened the statue will apply to me also valid valid logic I am a personal guarantor my liability is linked to lml's liability until that is ascertained no statue then this high court and all brought about stay order hear from your statue happened it was like a old mod versus Harry Potter wand you know all that they were fighting it went to court Supreme Court struck this down they said SBI you are sleeping before they could apply you should have applied here no so statue then government did not like this they said this is not done the moratorium should not apply to personal guarantor so that's why they changed the law in moratorium they change the law in moratorium seer moratorium is not applicable to Surety in a contract of guarantee to a corporate debtor Sanjeev shriya versus SBI and one more case as usual SBI versus V ramakrishnan if you don't remember just write SBI versus concerned version SBI versus concerned person you're right hundred percent will be there everywhere now moratorium not applicable to Surety in a contract of guarantee to a corporate debtor then the what do you say government was so annoyed with this law with this this entire case law that they said now I'll do SBI will do one extra thing for you you can put IBC against this guy now you can directly put IBC against this guy sbss sir but individuals have not ified true individuals are not notified so nirmala Madam said don't worry I will change that also what she did see her very nice actually here if you see uh yes sir it was Arun jetly Arun gently only full all these things were done by Arun gently brilliant so he dealing twice from this FN Geno he delink this portion he said I told you I'll do this later personal guarantors of corporate debtors personal guarantor Sanjeev shriya of corporate data LML they will be treated as a separate class and IBC is applicable to them from 23 11 2017. so for them DRT will come for nclt they said don't go to DRT only DRT is not framed only still Arun gently knows for DRT it's a full mechanism you have to create there's no time so I will delink them from there and Link them to whom mclt so now you see you will understand this carefully check this uh page 185 for corporates for LLP and personal guarantors relating to corporate address all happened because of LML versus SBI these are all the reasons once you understand reasons law is very easy so personal guarantors related to corporate debtors in any law if you understand the why of it becomes very easy income tax for every line Arun Jet Li chirambaram brilliant fellows there have added so many Provisions income tax indirect taxes even in IBC right so I was a very very shrewd you know minister so if you see here moratorium not applicable to Surety in a contract of guarantee to a corporate data Sanjeev shriya versus SBI same thing linked Amendment insolvency of personal guarantors also notified so as of today I can not only sue the company but also I can go for IBC against this himself before SBI can come can Sanjay shriya himself do it not also allowed because that entire thing was dealing no that portion also they brought in whereby Sanjay shriya himself can go to the nclt and say boss I will not be able to do the needful so if you see the I mean actually the the particular thing is already started by the way the whatever I am trying to tell is already begun and there is the first I mean I was just seeing the newspaper the first ever case that happened was this case gets India's first personal insolvency plea correct so this was in the you see this fellow's name omkaram venkata Ramana so the craters will say Govinda Govinda his name only is that no correct yes so if you see personal guarantor personal guarantor of home on the day name also superbly escaped on the day amended what IBC bringing personal guaranteust is the first ever guide this is DRT Dr tnl is not there now it is 38.66 crore because all these Nathan grains methane proteins within nutrition consumer products all these put together they're all defaulted on loans what so and so that I am standing guarantee to all these things nothing can be done so what will I do he only went for this five companies put together he himself went for this IBC so yes that is also possible now if you are a personal guarantor to a corporate data and you can also go for IBC that's the only thing which is notified nothing else is notified now normal individual not notified right so should not get confused so that's it very simple come back here moratorium moratorium so what happens in moratorium what all will happen in situation of Suits or continuation of Suits will not happen prohibited institution of Suits means new cases against the debtor or continuation of Suits will not happen transferring encumbering alienating disposing of corporate data or any of which can I sell off the assets no can I dispose of the assets no can I transfer it to somebody else that I know nothing can be done at a statute action to foreclose recover or enforce any security interest any some other bank has a right over my asset they want to enforce security interest is unfo secured in the surface e under surface is 60 percent of the lenders agree they can enforce the security interest fill it off so is that possible no so inject Airways the company had was in a building which was rented owner is coming and asking for money they said no owner said vacate the property Vector reset statue is it correct yes no choice see the fourth one recovery of any property by an owner or a lesser so yes it they can say statue so rent you can stand as what then Financial crater operational creator operational care there are multiple cases where rent also is not operational debt but all that discussion not needed now for your exam purposes rent also is what operational debt so you can stand there in the line that's all no choice that is what it is very simple cease to have effect when yeah basically till this entire thing will go on till what time until you approve the resolution plan within 180 days you approve then fine or if there is nclt should approve you will approve within 1995 days assume hundred the ncl2 will approvine moratorium ends or if they pass an order for liquidation they feel more the Revival will not happen now what about electricity water bestcom will cut your electricity any hotel statue yes to run a business you need that right so that's why the law only had stated supply of essential goods or services should not be terminated during the moratorium period so I have to enter a deal with this com like bro these months I will pay you are allow me to run the previous you stand in line for that but for these months I will pay you please allow me so that is their essential goods or services means electricity water Information Technology Services means at Broadband broadband telephone all those things you should allow me otherwise I will be crippled otherwise definitely will not get money for sure but provided you should pay for that during those months you should pay is what they said that's fine it shall not be interrupted or suspended this was there before but many such cases happened there was one case have you heard of this paper Deccan Chronicle is it there now no reckon Barnacle went for IBC so there the main thing is you know your die then your what do you say paper of course and the entire printing materials Etc they requested the Creditor sir you are standing in line I know operational crater you give this at least die also you give me if you don't give me die I will die right so if you don't want me to die you please give me the die otherwise the problem is that I'll not be able to run the show but if you see the essential Services it was only what electricity water [Music] that is the only thing I can give nothing else I can give is it a problem 100 problem guys so this company went for IBC many such companies went and told sir you are only telling essential services this but these are also essential things if you don't Supply this I promise I will pay for this during the period during the moratorium whatever amount I will pay cash to you you give me that let me run the show for the previous dues you please turn in the line let's see what happens because of many such failures law was amended again here in this only you can I mean obviously add on yeah this is one part of the story you can also add on anything that is required for what running the business that is for a growing concern anything that is needed for you to run the show all the services essential for going concerned according to the resolution professional that cannot be suspended it cannot be suspended similarly in Embassy property developers case Embassy developers so Karnataka High Court decision this is so basically the um what do you say Karnataka nclt sorry so they they went to the nclt and said the Karnataka government is not giving me the license for building now the remote the license there are license also they are canceling Embassy developers not the embassy property these are good one more Embassy was there that one so they said yes we will now no choice they have not given me the license I want to renew the license they are saying that you have gone to IBC I will not renew the license without the license I cannot construct that's right this point also has added license permit registration quota concession clearance whatever name call doesn't matter by the CG SG local authorities shall not be suspended or shall not be terminated during oratorium if there is no default in payment of current use arising for the use or continuation of the license so I'll pay you renewal amount please give me old I understand I have not paid for that you stand in line but without the license I cannot operate so apart from this anything that the pillow feels RP feels that it is needed for going concern that has to be given cannot be suspended because of this many such businesses came again started Reviving otherwise problematic now some problem in the moratorium section that's about it that is moratorium very simple in this these are the amendments that have come so the moment moratorium comes etcetera now Public Announcement Public Announcement who should announce that was an exam question we should announce IRP will announce our double A will announce double A will ask the IRP to announce and that you will have to make a public announcement saying that this company has gone for IBC or rather I mean you should now give your claims so this is one of the examples bhushan power and still one of the earliest cases so you have to give all the details whatever ending number identification number or the registered office details yes insolvency commencement date estimated closure 180 days in the full details name address registration number of the insolvency resolution professional Mahindra Kumar khandel while all these things along with the registration number last date for submission of claims also I should give and here it will be signed here by this guy but this is initiated by double A who will actually give it IRP will give it so the thing is all this I studied and went in the exam you know what they asked who will pay expenses of Public Announcement later you will get the reimbursement McQ yes it is paid by the applicant expenses of Public Announcement shall be borne by the applicant which may be reimbursed by COC to the extent it ratifies them so applicant goes overboard and puts a first page advertisement full page against a company which is anywhere doesn't have money to pay you right so we said no that advertisement should go wherever which is visible whichever is cheaper first of all no money first player attachment right so no not possible that's why to the extended right if I see the lawmakers billions they know people will go overboard let's try to be extended ratifies them up the moment that IRP fellow is appointed within three days a will initiate through this IRP Public Announcement name and address of corporate I showed you what are the content same contents right and one more problem in India even though it is not ours will go and stand there there are many such people who are attending saying claims when did you give money we didn't give a similar signing public interest correct so that's why they have given that also penalty for false and misleading claims it's all needed in our country I see they have also given your very clearly it should give all proof Etc sorry yeah yeah data still went for this so if you see all types of recovery all these things here submission of faults or misleading proofs of claim shall attract penalties bhushan power tatas kilo and then jswk Marshall game anything's happened so submission of false or misleading proofs of claims shall attract penalties you should give all those dialogues so same thing you should write when they ask you what all will be there in public announcement what all will be there in public announcement yes so if you understand everything practically then law becomes very easy rather than blindly studying this you should see the Practical side of it then they'll ask you about this fellow IRP or everything it's you know very easy the moment you are IRP C IRP commences you'll appoint the IRP date of appointment of resolution professional is the same date fine appointment of IRP Financial crater will appoint corporate data will appoint the RP proposed in the application is appointed as the IRP that's fine but for operational crater the for example the pilot or the employee will not know how to appoint so he will approach the nclt itself we'll say sir please a point so they will again initiate everything if you have not appointed I will ask the board to open board means ibbi idbi within 10 days you'll recommend the name of the IRP to the double A in either case I should see whether any disciplinary proceedings are pending against him so the IRP also should not be a fraud and there are many such cases where it has happened also where the IRP has colluded with the company itself and they have ensured that the nobody else has got money and of course there is lot of punishment also it is happening on a regular basis so of course there is uh uh punishment for such irps where who have cheated everyone so the thing is there are many such broadland cases as well uh which you know has taken this uh because you know there are Black Sheep everywhere so the IRP only have decided to do so what is the role of IRP they will issue the public notice he'll start the resolution process collate all the claims constitute the COC and conduct the first meeting of the COC powers of IRP should not be confused with powers of RP right powers of IRP management of Affairs of the company and exercise of Bo basically all powers of 179 more Powers will now go to this guy shareholders Powers also will go to this guy MD powers where everyone has to report to him that also will go to this guy and he will send an instruction to financial institutions as to what payment to take what payment to not take and all these things these are all simple points no problem how should I submit the proof there are forms given and those forms Etc no need to remember but these are the forms and everything will be given in the relevant regulations but they can ask you the timeline of when you should submit a crater shall submit proof so if you see a couple of changes one second this was done 193 there's a change we will see in a while yeah so yeah we can how many days should I submit the proof within seven days and within two days of such verification I will file a report to the adjudicating authority so the I will you will submit your claim no problem and IRP shall verify within seven days and within two days of verification I'll file a report to the adjudicating authority and this that asked in the McQ ones a creditor who fails to submit claim with proof may still submit proof to the IRP on or before Dash 90th day of the insolvency commencement date this is there in the regulation 90th day the paper Setter doesn't know that the IBC for 6D is slightly different from paper 4 so when they have clearly told that regulation is not there that only they are given the exam so this was one such question people had not studied this and one because genuinely it was not there but then they have given it in the exam so those areas whatever you are important other things have not come also I have added just to be on the safe asset all these are McQ questions within how many days how many days you have failed to submit the claim but still law gives you a chance to apply within how many days 90th day of the insolvency commencement insolvency commencement date is the cirp commencement date same as appointment of IRP all same resolution professional now Committee of creditors COC Committee of creta coc in the first meeting with a majority how much majority 66 percent not 75 percent 66 percent will either appoint the same IRP as RP or they will replace the IRP by another RP you will appoint the same IRP as RP or they will replace the IRP by another RP we are replacing same it has to go through the board process ibbi within 10 days lesson or if this fellow has been appointed same guy is appointed then I will communicate to all the three people so they will also ask you the next question is what is the eligibility for you to be a insolvency professional asked in the exam couple of times four marks first point is very easy you should be eligible to be independent director same all those regulations same thing will apply what same thing will apply he is not a related party of the corporate data this related party is not as per companies Act is as per IBC the same list of 185 you add something you will get 188 you add some more things you will get rated party so much in depth in this case it's not needed third he is not an employee or proprietor of a or a partner of the firm of auditors in the last three Financial years not three Financial years and fourth one he is not an employer proprietor of a legal or consulting firm tell me an independent editor what was the legal and Consulting point ten percent right 10 percent are less if he holds it's fine here you see there's a change he's not an employer proprietor Etc or as any transition corporate amount into five percent this they can ask you an McQ they can say if you want to be a IRP and you're already a partner of a legal consulting firm in the last three Financial years but the consulting firm has earned if it earns more than how much will you be ineligible first they'll get 10 percent then five percent so it is five percent don't go by this word he is eligible to be appointed as independent director here also independent at last point is ten percent only so 10 or 5 what should you follow always specific law will override the general law so in that Independent Idea Provisions last two points can be ignored last last but two points what are those points one is this one proprietor one more is this that you have to specifically follow this section now this five percent also has been asked in the exam this is eligibility to be appointed as what resolution professional replacement of RP the COC in its opinion if they feel that RP has to be replaced they can do so anytime without voting 66 percent name of the proposed RP all that same thing if it is there then of course you should appoint after all these things are over now whenever I have told voting share voting share voting share is it present and voting or is it overall the words present and voting are missing in the act so strict view is what overall because if you see if people are against seven thousand crores they have not come for the meeting only 1000 crore people have come does it mean if 667 crore person was going 67 crore approves in the entire it he's speaking on behalf of 7000 crore no let's try to ensure that because in Singapore law UK law that if you see they have given the dialogue present and voting you are present and voting is not there they have not even given entitled and voting they have just said voting share means the share of your financial debt to the entire financial debt the entire Financial letter which means that is your share so predominantly present and voting is not there so that you need to keep in mind so all these things are the basics now coming to the COC they'll COC will be formed composed by whom one is there are three people who can form the COC guys three people Oneness normal individual craters these are Financial craters who want to operate on their own when is authorized representative 21 6A 6aa 6ab 6ac 6A 6 a b and 6ac who are these people we will see and third one is what Consortium of banks or syndicated facility Consortium means what group of banks group of lenders Consortium they will form after giving the loan or before giving the loan before wrong ones are after reverse the gut after giving the loan the Consortium first I'll Give All everything later you will not prepay so what I will do I'll form a group so all these heavy insolvency cases are always formed by what Consortium Consortium after giving the loan syndicated facility means before before only if anybody wants a loan if today Ambani says I want loan all banks will come together and say sir we will offer you the best this is what we can offer that's called syndicated facility so for them they are also forming part of coc individual craters form part of coc and apart from that you have 21 6A a 6ab and 6A C so who are these people for you know 6A to come to this will be a chart here show you I can write here only page 194 here this is 6 a a 6 a b executor 6 AC 6A a will be what debenture holders deposit holders depends a trustee that follows the authorized representative depends a trustee 6A B home buyers 6A C executor administrator Guardian I told you executor no dispute administrator brother from another mother that one then Guardian that these three people they are the authorized representative 6ac 6ab home buyers 6aa debencer they are also called as financial credits it's what we are seeing here operational craters can come will operational creators come for the meeting no will they should they be given a notice all that we'll see so if you check Public Announcement limit requiring claims right I will submit the claims he will verify the claims Etc and after verifying he will immediately form the COC Committee of creators within seven days within seven days what happens first meeting of the COC and it is interesting to note in the first meeting of coc will SBI commence it or they'll send a representative as a representative should he be a insolvency professional generally yes whose which representative will they send obviously a person who knows how to deal so basically guys all of these fellows are eyepiece Chartered Accountants company secretaries you know lawyers who have passed the insolvency examination they are representing many people so the scope of this entire law is so much that you need not be an RP only you can just be an insurance professional who can actually represent one creator also in the COC not that you have to be the main guy you can represent other persons so all of them will sit across the table and I will discuss the first thing we'll do and COC is formed they are discussing or the first thing they will discuss which attempt which attempt CNO CA first thing which attempt when did you pass correct yes which year you wrote every year I was writing yeah so know which year every year so this is what they first discussed but of course in the first meeting of coc there will appoint resolution the same IRP only can be RP or new fellows available upon whatever it is but now the question they will ask is if SBI has 7 000 crore I mean 700 crore they have given out of 7000 crore ten percent they've given loan this IEP this insolvency professional is representative is sitting there will you also have 10 percent voting share all that we'll see that is voting you'll see the voting mechanism how it works now this is all okay one bouncer came in the exam once what if the company has no Financial crater operational credit only can apply but then who will sit in the COC Financial equator but he is not there what to do like this was one more question where they said regulation will not come and that only came correct that's why ICA aglan is what always expect the unexpected yes so if there is no Financial crater regulation 16 18 largest operation creators by value 18 largest operational craters by value it is less than 18 then all one representative elected by all workmen all workmen will you know elect one guy that fellow will go next one representative elected by all employees elected by all employees 18 largest operational craters by value one representative elected by all workmen one representative elected by all employees so this is what it says this is what we have to write this is what authorized apparently means what we have seen now 6A 6ab 6ac trustee origin this is 6 a a 21 6A 21 6ab and this is 6a C now for example home buyers authorized representative from the state or Union derivative having the highest number of Freighters in the class all of the creditors are residing in Bangalore but they have bought a property in there wasn't there was a separate Township called lavazar do you know in Pune near Pune separate separate Township only called he wanted to make it like a European Township forgot the name of the guy how to make it a European Township a Township but then unfortunately because of again land dealing many people invested many many rich people invested because it was a model European town and today it is called the best ghost town in India people go there because nothing is there it is completely deserted completely dilapidated everywhere they have you know all these graffiti and all those things so there are a few shops still but it was a Model Town which had lot of houses high-end residential houses it had lot of what you said restaurants uh European themed Canal system European themed boating was there European themed uh what do you say walk walkway it was something amazing it was actually like coming to Europe in India itself but because of land disputes many many cases the project did not take off so now tell me I have to put IBC against that company who started lava's assume but all homeowners are there so which homeowner the I the insology professional should be from which state whether you like it or not it's always so much so that if from somebody from your state is representing you'll be fine okay my my personal is going you'll think it's always like that so that's why law recognizes that and see this the interim resolution profession shall offer the names of three insolvency professionals we voted upon the class of creators who must be from the state or Union territory which has the highest number of creators in the class 1000 people have bought from I mean thousand people I bought that Lavazza 600 are from Delhi or 600 or from Karnataka 600 from Tamil Nadu what to do the insolvency professional names also it should be from where Tamil Nadu Karnataka example whatever I gave yes highest number of craters in the class as per the records of corporate data if they are scattered also there are other regulations not needed for us so highest number you have to choose so insology profession interim resolution professional will give the three insolvency professional names from your state sir is representing your state only your people you choose one among them he will sit here you will check here and he will represent you you will sit here and represent whatever you tell you will do it so please appoint one guy all of you come together and appoint one guy then meeting of the COC will happen resolution professional will give notice now the question is he will give notice to whom all members of coc who are the members of coc Consortium syndicated facility normal individual Financial craters then 6A 6ab 6ac everybody will get notice I am an operational Creator who has given goods and services Etc should you give notice to me next one operational creators for the representatives if the amount of their aggregate dues is not less than 10 percent of the debt overall debt of the company is 1000 crore in that operational debt is 400 crore I am an operational creditor who has given goods and services worth 45 crore question is should I be sent a notice this question has not come in the exam 10 percent of the debt is 10 percent of operational debt or total debt so which means to say that you know at least 100 Crow 100 crore out of 400 crore should be operated in this product operation at world so it will be 100 out of 400. I know but is it basically what I'm trying to tell is since there are 400 crores already 100 crore out of 400 if they apply only then only it matches this no 10 of the total debt is it total debt or operational debt so on that issue also there was you know a case which went on this question as I told has not come so is it the total debt or operational debt golden jubilee hotels private Limited in which the nclt told it should be 10 percent of the total debt 10 percent of the total debt will they all get the right to attend or will they only sit there they said nclt said total debt ncl80 also say I agree to nclt then the issue was closed then one more doubt came 10 percent of total debt okay is it debt of the company that submitted or debt admitted everyone can submit But ultimately you have to admit the debts right after verific verifying there's a ten percent of the debt submitted or ten percent admitted this also was an issue question of law they said it is admitted ten percent of the debts admitted not submitted right yes you say that you can attend your right to attend attend means what can you speak no what can you do you can just observe so ncl80 told the representative is allowed to watch the proceedings and eat also silently without making sound yeah you can yes chocolate only cannot open slowly yes so 100 crore it is in this example 100 crore so should I give it to Vijay mallya also if I am going against Kingfisher yes now the question is if Vijay mallya does not come or if this operational crater does not come what happens to the proceedings valid invalid valid valid right so these are all these like you know they are there also where even if they are not there no problem in our Gali Cricket they receive one guy we used to take bat and all from him but he was an o plus player we used to only call him because bad ball everything so he used to take money we should take the battle and if that fellow didn't come good only if that day it didn't come he said good anyway you don't know how to play but for extra person if we need we need no those kind of people they are operational creators you come you don't come I don't care give me the bat that's all so board of directors partners and one represent all these people should attend can attend yes so it is what they say any member of coc as we have seen already May appoint insolvency professional other than resolution to represent him in the meeting I told you anybody can represent only for authorized representative law has given Provisions because home buyers don't know to appoint then that's uh that executor administrator don't know how to open that's why they have given these provisions but for others let's say I am an individual who has given 20 crore to the company I am a Serial what do you say investor I have invested in your company IVC I cannot come personally can I appoint somebody yes when I appoint somebody to sit there who will pay the fees and all that for that for that guy I have to pay obviously that's what they are clarifying fees of such insolvency professionals shall be born by such great art law only gives Provisions for Provisions for whom the uh authorizer for home buyers because home buyers have to be handled so for them only I'll give Provisions that's it now couple of months and we can break for lunch here this is an important section guys special approval of coc for certain actions of the resolution professional in Section 179 of our companies act we saw if you want to borrow money invest funds Grant loans whatever it is what resolution is needed board meeting resolution appointment of auditor removal of auditor normal sections all shareholders can do this is a combined power of board and shareholders who can do all these things RP but then he has to be approved by COC resolution professional will call a meeting and it will take an approval of coc 66 percent or more of the voting shares to do what these things raise any interim Finance what is interim Finance short-term loan for me to run the business I need some loan interim Finance create any security interest that is obviously over the assets basically I can say boss I am taking this Finance you please take over this you know assets no problem but I just told moratorium everything will please you can't take security interest except exception is interim Finance or interim Finance you can actually what offer your assets as security change the capital structure alteration of capital you can do under companies act alteration of capital is ordinary resolution here no resolution needed 66 percent approval by COC record change in ownership interest also give instructions to financial institutions undertake any related party transaction amend any constitutional document AOA MOA imagine all this shareholders powers given to this guy delegate its authority to other person whoever whichever person you want to delegate the authority dispose of for permit disposal of shares make any change in management also if need be make changes in appointment or terms of contract or statutory auditor into a lawyer personal uh despite everybody who can do it without any problem these actions which are taken without approval or void you can change the terms of statutory auditor also all the powers of shareholders now west with whom this guy this has been asked for four marks few points you have to write mind you to do these things first you have to take the approval no approval cannot do if anything done without approval is void COC May report actions of resolution professional to board for taking necessary actions against him under the code that also can be done that also can be done so a couple of points small points will do and then we will after lunch we'll do a very very important supreme court judgment Sr Steel versus you know the union of India said this uh you know Satish Kumar Gupta actually is the resolution professional last part before the lunch break would be authorized representative voting how will they vote this law has provided this has not been asked so many times guys because it's little relatively new 25 capital a so it is you know any time or whenever they want they can ask they can keep on asking also so let us talk about first 21 6 Consortium fellows or syndicated facility their voting is under 25 A3 for example many people are sitting here one Consortium is also sitting they have appointed one guy they are representing the full Consortium the console overall debt let's say is 10 000 crore Consortium is six thousand crore basically Consortium is 6000 remaining that's just four thousand crore four thousand will be individual fellows all that you leave now Consortium Banks they have come or Syndicate facility six thousand crore they have given but there'll be many banks such as called Consortium SBI has given 1000 in that ICICI has given 500 then HSBC has given 700 like that many things HDFC is given thousand whatever the case may be the question is the representative so basically guys in this meeting I have to vote how much water have overall this representative six thousand sixty percent what he has actually sixty percent what he has question is very simple will this fellow first come you are all you are only the Consortium you are each Bank each Bank you have given one one loan should I come to you first and do a normal voting I'll say see this uh let's say this is about raising interim Finance because for everything you have to take permission right raising interim Finance so I am the representative I'll come to you and say boss the issue there in the COC is Raising interim Finance for that we need 66 percent vote anyway we have sixty percent of that so now you guys tell me should we go for interim Finance or not kindly approve you need to pass on that approval to the RP he will do the needful now should I take majority here or individually you have to ask individually which means first I'll go to SBI sir yours is thousand crore in that what you want to do 1000 is a yes or thousand Pro is a no so if you say no then I have to write down SBI 1000 crore no next I have to go to ICICI Bank 500 crore yes some other bank 500 crore yes like that individually you have to take votes not majority so basically when I take such words let us say 4300 crore worth of you know people have told yes then 1700 fellows have told no when I go and start voting in the main COC my voting will be 6000 yes or 4 300 yes 1700 no yes four thousand three hundred yes and thousand seven hundred no that is what the loss is Consortium is just coming together for better stability that doesn't mean voting also will be diluted there individually I have to take the voting so if you see your individual instructions of each Financial crater separate voting for each Financial crater so let us say in this 4 000 have said yes 1700 said no 300 pillows abstain what to do in 300 can I do whatever I want no there no prior instructions by Financial crater the authorized representative should abstain from voting on behalf of such Financial crater I will abstain from voting same for others also guys whoever's normal Financial creators who don't want to go through Consortium individual fellows but the real deal is for 6A a 6ab 6ac that is for trustee agent home buyers all this let's take home buyers for example home buyers here are all the home buyers right so basically in the same example same example home buyers represent 1000 crores that's all ten percent but still it's a valid word ten percent thousand crores when I come here and send your all home buyers one fellow has given 10 crore one person has given one crore one person has given 50 lakhs all put together thousand crores are there now the question is one more question guys can one person uh do this IBC can it be done by one home buyer before this part I just want to touch upon that can one home buyer apply what do you think can one home buyer apply for IBC no you know what used to happen this also came because a small problem that was not so relevant to idea so I didn't add so but still it is important to understand can one home buyer do it people were doing it one home buyer in order to increase and decrease the market rate there are many such people who only deal in real estate buying and selling trading so what they do they used to go to this fellow inside anyway most of the builders will never give on time and now you have the power that you are the financial Creator I will go to the and say I've already given one and offer you have not given me the delivery so I'll go IBC against you the moment it becomes noted that this company is going for IBC better Real Estate fellows will come and take the land value will increase so actually the demand will increase like that people were doing this imagine when I give benefit that also will misuse people are doing this that's why now they have given this yes 100 or 10 percent whichever is less so how many home buyers can apply 100 people or 110 whichever is less so if the company has I mean it has some 600 buildings 60 or 100 whichever is less there are 600 Flats 60 ohm buyers or 100 whichever is less that's a good provision okay that's one part of it leave it so now why I told hundred was let's say 100 people are sitting here 100 home buyers are there each of them overall is thousand crores so some of you are given five some of you have given one some of you again fifteen you have different units all that no problem should I come individually or here should I take majority yeah here I should take majority which means I will do the voting when I do the voting 530 people having 530 crores people are going 530 crores they say yes right then 470 say no so when I go for this main voting should I take 1000 as yes or 5 30 yes 470. thousand I have to take as yes that's the main difference between the two I should take thousand as yes so check out here thank you authorized representative will act as per the decision taken by more than 50 percent of voting share of such Financial crater not majority in number it is not majority in number it is those who are present and voting here they are given present and voting dialogue those who are present and voting like a normal thing in Thousand crore if 20 crore 2004 kilos don't come I don't care I should take the majority of 800 401 if it comes I will go there and vote full thousand right but exception is there if it is for withdrawal of application under 12a withdrawal of application Under 12 a withdrawal of application how many people ninety percent no so in this discussion they are discussing what withdrawal withdrawal so now 1000 crore I have to give I will go ask 530 have said yes for withdrawal 470 have said no for withdrawal when the main representative comes here and votes will you put 1000 or 530 as 470 no yes and 470 has no only for withdrawal so if you see the full example if you see here twenty one six three thousand crore 216a that is home buyers 1000 crore over all four thousand for twenty one sixes your Consortium so out of this thousand assume 600 crore fellows will say yes 400 core fellow will say no it is deemed at thousand dollars said yes however for 12 a 600 crore if they said yes 200 have said no then I will take 600 crore as yes for withdrawal 400 crores no for withdrawal very very simple so I'll take a break after the break we shall continue with a very very important decision which has far reaching consequences that is supreme court judgment in Sr steel many many changes came because of that all right guys happy afternoon did you have lunch whose birthday somebody's birthday no birthday no no I thought you are getting cake and all today cake chocolates okay you know what man you you become a CA then we will cut cake no problem so come from Chennai yeah yeah they have come they have come so I have to give you sweet snow you have come all the way I have to give what cut cake I will give you sweets don't worry anyway many sweet shops are there so no problem what do you want biryani what's famous in my traffic so that's the famous thing sweets already got no yeah so that is there now traffic is the only thing famous here man all states yeah all states which anyway will get here so which state you want you can get right but actually the most famous Suite of Karnataka is actually Mysore Park but the problem is Chennai people have beaten Tamil Nadu people have beaten us to it right the Krishna sweets makes the best Mysore park though it is actually originated from Mysore there there is not even one place which is actually matching to the level which they have made yeah you have any shop which is better than that I'm asking genuinely I didn't find anything actually unfortunately yes cool so let's begin so we were discussing which one yeah yeah here we were seeing voting mechanism and all that it was done now Sr steel case important case because of that many things happened which is what is given here let's read Sr steeld sorry cool so what happened initially was Sr steel again the Central Bank RBI is vested with powers to fix the bad loans in the system so RPI identified 12 accounts of resolution under IBC so they figured out 12 companies which were not at all doing well but then the loans were already NPS because those companies had become NPS in the books of many banks so they went and RBI you know told that these 12 companies have to go through IBC so they cannot do it they have to do it through whom the financial craters so they woke up SBI right and they said you have given so many you have given so much money wake up boss at least go put the case against the company which has not paid you money scores of rupees so SBI and Standard Chartered filed a petition against Sr because RBI ordered them actually right that is the reason why they went to Sr steel against Sr steel Sr still immediately went to what do you say Gujarat High Court and they said this is unconstitutional it is RBI forcing SBI to wake up is unconstitutional is what they told is what they told now this obviously they challenged RBI decision who will win the case very simple first make the payment then talk all the other things you talk later so if you see that's why nclt admits Sr steel for insolvency proceedings this fellow Satish Kumar Gupta is appointed as the resolution profession one extra thing good thing about uh doing the IBC courses you will also your name will come in the paper actually so name will come in the paper so nclt admits Sr steel for Insurgency proceedings under Satish Kumar Gupta is RP expression of Interest everything has been invited now the best part is two people Express their interest Oneness or seller methyl the company which obviously all the control is from the UK so actually this was a litmus test for his son they uh the father told the son if you strike if you get this deal for us company is yours really really true story that if you get this deal for us company is yours then I know that you are ready to take the company to larger Heights so that is one part one more was new metal one more was new metal now Satish Kumar Gupta when he was seeing all these things he figured out new metal the one of the promoters of new metal was Revan pruya right and revanthruya was the son of the promoter of Sr steel that's what me buying the company through me that scene so he has sent his son and that Chana started one Russian companies were Russian company by the way new metal and there indirectly trying to buy the own company so Satish Kumar Gupta said this is wrong SO meetings are held between Arun jaitley and all because it's a huge high profile case on the other hand Arsenal there were two uh other companies uh KSS Petron KSS Petron and uttam galwa these are two other companies here also SBI had given loan true story as we had given loan here also and these two companies had not paid only they had not paid Arsenal had a stake he was a promoter or basically in one of the management of these two companies so an oscillary methyl wanted to take over Sr Steel Satish Kumar Gupta asked a simple question was you have is you have actually control over these two companies and these two companies only have not paid that they are actually NPA they are npn now you want to take over Sr what is the guarantee that tomorrow you will actually pay valid question you are actually seven thousand crore was spending 7000 crore you first you first make the payment there then we'll see first how can you how can I allow you you have already been an NPA there how can I allow you to come here was the question valid questions and the same time in Breakneck speed uh Arun gently introduced what 29 capital a he said boss if you are all these things no then nothing doing Arun gently inserted a clause with set if you are already holding an asset other thing which is NPA you have to first make the payment and then stand and here new metal is not possible because link 2 ray 1 through retrospectively introduced 2018 he felt sick after all these things and 19 or I think 19 or 20 passed away 19 19 I think so 17 18 he brought some deadly changes so it is like you know his last few changes before his death were extremely really really good so for example this is one such change that is 29 insertion of 29 capital a right so this is almost like a two hour discussion two to three hour discussion if we have to do so let's not obviously check go so much in that but basically what they are trying to tell is if you are an undischarged insolvent if you are a willful defaulter according to RBI or at the time of submission of resolution plan you have already have an account which is classified as a NPA non-performing a set then in that case there is no point this is the this is the thing you already have an asset which is an NPA and obviously how can I allow you to do so an account of a corporate data under the management of such person sorry this thing Lakshmi metal under is management already which is there somewhere else that is also NPA for one year how can I allow you apart from that this convection also convicted for any offense punishable under two years or more Under 12 schedule 12 schedule has almost all the legislations apart from that other cases seven years or more prohibited from Trading by sebi prohibited from Trading was prohibited now if you see that he was doing some you know recently those transactions where he used to go to you on YouTube and give the through other entities who other companies or other YouTube influencers speaking about companies which come with shares will go up which they shall go down correct they're called dumping activities dump and pump activities he was doing arshadwarsi and his wife Mariah Goretti both were banned from Trading by sebi now tell me take over one more company no can he apply can you be a resolution applicant no or any of his entities be resolution applicant no that's what they're trying to tell disqualified under 164 of the companies act promoter of the corporate data or a preferential transaction under value transaction extortionate credit transaction or fraudulent transaction has taken place in all these cases this we will see later execute a guarantee as a connected person ineligible under all the above points basically if these things have happened even if you are convicted for two years there is some relaxation here uh here no restriction for a person after a period of expiry of two years from the date of release office from imprisonment from The Day You release two years later you can still pick up any company on the other hand what about this can One Financial entity is there it has what do you say can it only take over any company yes now there is a loan if you don't pay the loan this company will convert the loan into shares whereby this financial entity let's say SBI will get 20 percent stake in this company 20 percent stake in this company can SBR take over this company ideally no because you have substantial interest but why did you get this interest because of the business transaction so if you see 29a is not applicable to a financial entity who is not a related party to the corporate debtor and SBI is not called a related party if a financial entity holds shares in the corporate data solely on account of conversion of debt into Equity shares so these are some of the provisions so 29a was inserted by actually and they asked this fellow to pay did he pay yes he desperately wanted to buy Sr Steel eventually Arsenal only bought Sr Steel so they desperately wanted to buy Sr still so what happened paid off seven thousand crore 7000 crore was fully paid so if you see now moving on that is fine that's okay but many things happened due to Sr Steel the next part of the story was one second here section 29a was introduced prevents default or promoted related party from bidding from stressed assets ruias Sr steel is barred from bidding similarly RP find both bits ineligible under Section 29a both new metal and Arsenal metal move nclt challenging the rejection nclt holds new metal bit valid of ruia exits or Salad methyl as to clear dues of 7000 crore and they did it they did it ourselor methyl revises the offer to 42 000 crore whereas new metal was 37 000 crore so who won the bid Arsenal method so when they are about to what do you say celebrate one more twist in the story Sr steel they only came and said please withdraw Under 12 capital a they told SBI and Standard Chartered please withdraw Under 12 capital A we will pay every rupee this was the next offer has decided to give 42 000 crore as we discussed 41987 Financial craters 214 operational craters this is the overall claim forty nine thousand three ninety five of financial craters are getting almost you know 80 90 percent whereas operational creators are not getting anything almost peanuts but still that's getting something it would have been zero anyway so 42 000 crore Sr Steel entered the entire plan and they said every rupee we will pay full fifty four thousand three eighty nine core full payment will make who will win the bid SRC is ineligible but SSL is selling you withdraw we will pay you please withdraw you will definitely make the payment so who will win the case obviously Sr still but then nobody allowed the courts did not allow this because if this happens everybody you know will start doing the same thing go on till the last part that's why if you see what was the dialogue when can you withdraw until the resolution plan was approved so here it almost approved it is then at the time of approval you are coming and doing all these things again it went to court Osler methyl took them to court again and obviously they said in the interest of the law it's always better for a new person to come and take over because then they ask the question what were you doing all this all this time this was default was not six months seven months two three years so did you said no money how did money suddenly come Violet question where did your sources how did you get the all this funding how did you get 54 000 code just because your company is going away from you you are now in a position to manufacture money is what they said actually so it is there is no way that I will allow you to get this thing 54 389 crore so that is what they said very very simple guys so this was what the Ursula versus Sr offer was so obviously eventually who won Australia metal one this was not the end of the story what happened was this proposal went to the nclt this proposal went to nclt this was decided by whom COC COC community of creators nclt also approved I mean xcoc approved it went to nclt nclt did one blunder or did they do they said you are taking 41987 crores that is almost like 80 85 percent here you are giving peanuts he said I will approve 42 000 crores no problem but I am gonna change the Matrix means what you just take some thirteen thirty thousand crores remaining or you just take some thirty five thousand thirty six thousand thirty seven thousand crores here at least let's pay 4500 crores you take a further haircut that's called a haircut technically you take a further haircut you take 37 000 crores so this time who went against nclt SBI SBI went against nclt saying that what is this nonsense so why should I if they had a simple dialogue if I have to take it at 35 000 36 000 crore then I would have why would I have taken a secured loan like this I would have given an unsecured loan and charge 20 interest I would have got interest every month I have taken and given a dirt cheap rates because it's a huge risk and they said that nclt cannot what do you say go against the commercial wisdom of the COC commercial wisdom of the COC nclet also changed the Matrix and all those things all that happened then it went to Supreme Court now Supreme Court RF nariman was the judge wonderful decision he said right they cannot look into what they they I mean the the nclt cannot judge the commercial Judgment of the COC and they have lot of risk Etc all that they have taken because the ncl80 nclt was still okay not so much but ncl80 went into the discussion of equity and equality and all those things so they went into Equity versus equality so if you see Equity versus equality discussion if you take into consideration if you take this is the picture it speaks about what Equity versus equality as simple as that right equality is what all three are equal that equity on the other hand so that all people will be on equal footing so that is the actual meaning of equity that is justice so can I you know impart Justice in such a way that an operational Creator who takes minimum risk he will be equated on par with financial creditor is that true or the equality itself is equity is the discussion that was done by RF Norman wonderful judgment some almost 100 Pages if you see you'll learn some thousand new words right that is one thing so that is a wonderful judgment uh then yes this is what happened they came out with a wonderful wonderful judgment it was in 2020 2021 2020 East they came out with a amazing judgment which uh 1920 that range so where they said first okay now let me do one thing you are an operational Creator you are crying now telling you are only getting 214 assume if the company had gone for liquidation how much you would have got so they said so you please do a proper valuation how much you would have got there are two things this is called resolution value that you have generated during resolution you please calculate the liquidation value in liquidation how much you would have got so when they did the calculation they came to know they only would have got 50. 50 crores that's it 214 you are getting and here 50 crore you're getting something no don't be greedy don't be greedy Point number one point number two they also told the financial craters boss you take whatever you want but for these people you should Ensure that they will get the the they said the resolution value should be equal to at least liquidation value you they should not feel because they don't have any power to vote in the COC they should not feel if they had gone for liquidation they would have got 400 they should not feel like that so in the distribution of Assets in the entire what you say scheme of things and there's a distribution of assets that comes here I will show you yeah this is page 200 distribution of assets the code wonderfully said if you distribute if you distribute what the all the Assets in this liquidation value if you are there are two things resolution value liquidation value they told very simple you please organize all the values in the exact sequence what you would have got had you gone for liquidation so basically who are crying the people who are crying who are the guys who gave services and goods if you see the water is called a waterfall mechanism this is during liquidation waterfall mechanism they said first is insolvency resolution cost you'll get liquidation cost Workman due employee due financial debts here they are saying you are crying they are saying you are getting 214 if I had gone for liquidation no if I would have given all these people and by the time I came to you you would have just got 50 crore in this you are getting in 214 let's you are getting some 70 crore so the judge said beautifully you take the resolution value no problem and distribute it as per as if the company is going for liquidation wonderful you take the resolution value what is the resolution value 214 crore and distribute it as if the company is going for liquidation second part take the liquidation value only and distribute Court said beautifully this or this whichever is higher you should get where very fair so the liquidation the resolution value or the liquidation value both you will organize in this waterfall mechanism because if you reject this uh what do you say 214 I'll go for liquidation and you have no power to reject because the SBI said sir you are giving me 37 000 crore genuinely if I sell off the assets now I'll get 42 000 anyway so for me I will get 42 000 if it is golden going liquidation I would have got 41 000 here in uh you know resolution so I thought let the resolution only go ahead but now you are making it 37 000 crore I'd rather go for liquidation that's why wonderful judgment RF nariman said okay boss whatever value that resolution value organized arrange in this only then liquidation value also arrange in this only whichever is higher you take very very fair excellent judgment whatever judgment came nirmala Madam copy pasted simple and made it into a law that is the law now so the law is that as I told you these questions you know are since they are new relatively new not as many times so page number 195 important Amendment due to the supreme court judgment in Sr steel case so check first one resolution plan resolution plan provides for payment of debts resolution plan provides for payment of debts of operational craters which shall not be less than shall not be less than here amount paid to such creditors in the event of liquidation under 53 means what waterfall mechanism that mechanism what are they trying to tell liquidation value you take and distribute in that that amount or amount that would have been paid to such great as if the amount to be distributed and the resolution plan had been distributed in accordance with the priority there means resolution value distributed in accordance with 53. whichever is higher whichever is higher very very good provision extremely Fair extremely Fair they say you are not happy with 200 go for liquidation liquidation will get 50 are you happy no they said then leave it you cannot pinpoint the commercial wisdom of coc just because you don't have power and they have the power to take decisions and that's because you got just 200 out of 5000 gross 200 also wouldn't have got otherwise you are now obviously you know becoming greedy you have no right to claim equality they said equality itself is equity wonderful judgment right Equity is everyone will be on equal footing it is fair and reasonable then some guidelines he gave this one distribution shall be fair and Equitable to such creators as I told you the Judgment was fully copy pasted into the law so whatever you read these wordings are the wordings created by that two-member bench if I'm not wrong and one more person yes wonderful judgment then one more issue had happened in ncl80 those who had said no to the this thing no in financial craters who had said no to the resolution plan they had got less amount they had got less amount in this and also hero Corporation one more case law they got less amount just because I said no but there was no no law which said you can get more or you can get equal law did not say so so if you see here those who do not wait in vote in favor of the resolution plan shall at least get same payment as the creditors would have got in the event of liquidation of the corporate data so same amount they will definitely get no change this was the wonderful decision in Sr steel case so resolution applicant will give the plant resolution professional exam the each the plan and confirm and will present to the COC and that flow will and finally cocl approach 66 percent and for example shareholder approval not needed if COC approval is already taken so if COC once they approve especially we just saw compromise and arrangement in section 230 and 230 2 what do you think uh shareholder approvals has to be taken how many shareholders minimum that is majority and three fourth in value correct majority number and three fourth in value if you remember so should I take their approval no the moment it goes through COC it is deemed that already taken shareholders approval because COC suspends shareholders Powers COC suspends board Powers but what about uh any other approval for example you have to take Kratos approval you have to take the sectoral approval also so for example if it's an insurance company going down you should take the approval of irda Etc what about that can I take that yes that should be taken within one year that will be taken within one year from the approval of the resolution plan if it results in what do you say takeover what about this what do you say if Vodafone and idea come together creating Vodafone idea uh will you take CCI approval one year later no damage would already been done because CCI probably should take before the creation of a combination and CCI approval should be taken prior shareholder approval this one year and then COC CCI approval CCI approval should be taken when prior approval to be taken prior approval to be taken whereas other approval other than shareholders approval within one year and shareholders approval not needed at all if the uh you know approval is already taken by the resolution plan that's it then what happens all these plans will be presented voted approved plan will be sent to a when they order they satisfied they'll approve the rejected then liquidation if they accept it guys moratorium will cease to have effect the resolution ah plan will be sent to the board will be recorded in the database everything there ends the matter now this central government state government produce like GST income tax their operational craters are Financial craters operational they had all taken a haircut they had just taken two crore out of 10 crore three crore out of 5 crore all that they had taken fair enough they got the money also now once the new company took over they started sending notices 8 crore right government what can you expect to crore the department started sending notices like this what do you think it is valid or invalid you know that's why one more Amendment came here yes approved resolution plan is binding on corporate data employee members creators and this was inserted later CG SG and all state authorities including any local Authority best com all these things 16th August 2019 these are all the changes guys simple then that's all that is about cirp that ends then what begins liquidation so once there does for four marks when will you begin liquidation when will you begin liquidation the CRF is not approved by COC or the COC approves but double A that is nclt Fields it is waste that then then that's what then which one no plans yes there are 66 basically not received any resolution plan a rejects the resolution plan 66 percent of them say it's better to go for liquidation only then that are contravines the plan in all of these cases I will pass the liquidation order Public Announcement will be made same thing and these are the four items in liquidation appointment of Liquidator formation of liquidation estate consolidation and validation of claims and distribution of assets that's it so this timeline have again taken from regulation this can come in McQ full timeline the moment liquidation has commenced within five days I have to make Public Announcement and within 30 days from the first day Collision of claim submission of claims will collect all the claims I will submit all the claims within 14 days from that day I can withdraw the claim or I can vary the claim so overall how many days 30 days plus 30 days within the 30 days within first five is what I should do Public Announcement and from the expiry of 30 days collation of claims will be done submission of claims will be done and then 14 days from that day I will either withdraw the claim or vary the claim from the expiry of 30 days 30 more days you will get to do what verify the claims verify the claims within that verification period only you can withdraw or vary if you want to after that nothing possible after verification I can either accept the claim or I can reject the claim if I accept the claim within seven days I have to communicate to the Creator and then within 14 days of that Creator May again appeal to double a because you know you have what you say accepted rejected or you have not given the proper result for me if you accept my claim no problem if you reject my claim within 14 days I can claim and appeal these timelines with the dates can come in McQ here and there how many days I should go for Public Announcement all those things there how many days JRP three days CRP three days here it is five days like that they can confuse you you'll remember three and was the last liquidation that is a problem Institute is like that only so you will write three and come they'll say wrong yeah so you'll say no it's three plus GST GST I forgot five days yeah so 198 is the next appointment of liquidator very simple double A will pass an order for liquidation and resolution professional only can act as the curator or you can replace same replacement also can happen these procedure is the same as you will be sent to the board within 10 days I will propose another person's name simple liquidation estate what all will be included what all will be excluded any assets over which the corporate data as ownership rights will be included encumbered assets where others have a right over the asset have given a loan secured assets will come there tangible and intangible assets then there is one you would have seen everywhere you own the land you own everything but that outstanding suit will be written they would have said that it is under what do you say it's sub judici subject means at court case is going on but paper is with me all the papers are with me I'm the company I own the assets should I take that or not take it case court case is still going on so I should take it later we'll see based on the decision we need to see that but if the court case is still going on about the ownership but I have a set of valid papers According to which are valid point number this point ownership of assets determined by the court or authority should be it is still to be determined can be taken no problem assets or the value required to other proceedings should be taken yes this point I'll explain later property belonging to or vested at the insolvency commencement at everything I will take what should I not take then assets owned by third party which are in possession of the corporate data there is a company called uh is forlinko if you have heard forlinko you can use rented furniture like if I don't want like if I want my integers to be changed every time took me many people they have built a business over it imagine people they have built a business over peoples what do you say need for change who will keep on buying furniture so best is what every one month I would change my interior so for lanco it's a very very successful business right so for Lenco I have the entire my entire company has only four languages because I kept on changing the interiors and for me I realized that that is slightly higher cost than buying I know but at least every month it keeps changing now the question is will I take that into account no obviously assets owned by third party which are in possession of the corporated are not to be taken Assets in security collateral held by financial service provider all your margin money Etc that should not be taken because it's separately set aside for that personal assets of any shareholder should not be taken assets of any this their last ones can I take over the Indian or foreign subsidiaries assets also no other assets these are all the inclusions and exclusions then he will consolidate the claims within 30 days and it will you have to keep on submitting the claims and you will submit the claims Financial creditor and operational Creator partly Financial partly operational Financial crater I will provide record of claim with information utility and all these details I will collect and there are partly Financial partly operational means what so SBI had given a loan to X limited their financial crater X limited had I mean somebody else Mr a had sold Goods to SBI also sorry to ex limited had sold good sex Limited and against that payment he had discounted the bill here bill discounting right so when a discount with SBI so obviously SBI also will be now the operational Creator so operational creditor is to a person whom the operational debt is owed but also to any other debt which has been legally assigned or transfer same with financial debt also all this factoring Etc all that should be taken into consideration so if I am partly Financial partly operational the extent of financial data and financial crater the extent of operational time operational Creator in for 14 days I can vary the claim we have seen that already then they will verify the claim and they will send the details all that in the initial timeline only we saw then lastly now this is an interesting thing in companies Act if you are a secured creditor in companies act if you're a secured creditor what are options you have first you give up the security and become fully unsecured or a secured creditor the value of the amount that you are taken is uh decent but the thing is the security you have given around one and a half crore but the security that you have is completely now though you are taken at the time of taking it was three crore now it has reduced to some one crore so what you will do better to relinquish the security and stand as unsecured you feel as unsecured Creator will get more money that is one or you value the security if you feel it's enough to cover the liability enforce the security interest ignore liquidation fully ignore liquidation fully if value of Securities is not enough to cover the debts then for example you have given a two crore loan you feel that in the market the property that you have four core you'll get but unfortunately they know it's a distressed sale so you will only get one crore you can recover one crore for remaining one crore you will stand as unsecured creator unsecured this is what was happening in all the cases people knew it was a distressed sale so they were buying it for very less So Gone But Here Beauty about this IBC is they say if your relinquish means what if you give up the asset for me I will put you in the second line only if you see this your I will put you here secure creators proceeds of relinquished security if you have relinquished your asset if you have given up your asset you will get the money immediately means first is what insolvency course second is liquidation cost Workman dues and here secure traitors debt you will get the money right there secured creditors debt you'll get it right there What if I realize the asset and enforce the charge I realize the asset and enforce the charge then they say for the unpaid amount same example two crore you sold it up for one remaining One Core where you will stand and guys this is like horrible you see first is in solvency resolution cost liquidation cost Workman dues of 24 months and secure creators debt employee due of 12 months financial debt owed to unsecured creators dues to cgsg for two years here after unsecured creators also will pay to normal unsecured creators after that you'll pay to government and then if anything is left unpaid use of secured creditors unpaid use of secured creditors who are these who have not relinquished their asset those who have relinquished their asset first payment here those who and uh you know after insurance resolution process cost the first payment will come to them only is anyway usually we should pay the process cost First will be given to whom secure creators but if you don't relinquish your asset you sell the asset recover some money for the remaining amount you have to come here unpaid use of secured creditors remaining dead sand use and then preferential holders then Equity shareholders so what is better obviously to relinquish but in companies that if you're relinquish you will become unsecured that's the biggest advantage of IBC you relinquish the security you will get to stand you'll stand to get what full money because if you want to sell the asset it is always a distress sale people will know the company is going down you're selling that asset to recover some part of your money so they will always purchase at a lesser amount always they will purchase that lesser amount then finally what happens guys corporate data assets are completely liquidated and as far as the waterfall mechanism is coming back waterfall mechanism is called a waterfall mechanism so first you will pay the insolvency resolution process cost and liquidation cost what would be the insolvency resolution process cost IRP fees obviously versus IRP fees liquidation liquidation fees then all the employees who are working during cirp their salary will be IRP uh IRP cost IR cost that is in service resolution process cost then that water all those things Essentials yes interim Finance all this will be expenses covered under in solvency resolution process cost liquidation causes everything that is needed to in the company that first you will get including a Liquidators fee then Workman due off 24 months this question has come twice already for eight marks they'll give you a list of everything you need to organize it in this manner they'll give you a Workman due of 30 days 30 months so you should convert it to 24 months remaining six months what you will do here remaining that's it should come this will miss out while Distributing that last six months due you have to put it here will miss that so these things you should keep in mind now the question is till I come here it is around 10 crores left okay if I took three crores left three crore is left central government due State commend you both put together is two crore correct central government you said Commando Stu crore whereas unpaid due dues of security secured creditors is one crore right let me say only two crore is left SG and cgp I have to pay and this secured crater one crore I have to pay on the other hand in that CG device 1.5 crore SG dou is 50 lakhs I just have two crores to pay now but the overall do is three crore what do I do twist one should I do twist one you see it says and and so it says between and among should be Pro it should be in the same proportion between and among is what the law uses the word between animal how do you what do you mean by that between the two which will it will be equal means what cgsd is one part that is two and unpaid use of secure Creator is one so what ratio is a 2 is to one so first of all that one crore whatever is left or two crore in my example should be first distributed in two is to one ratio first it should be distributed in 2 is to 1 ratio because it's C government and craters are paid Parry passive Parry pasu means what in proportion in the same proportion it is not equally in equal proportion equal proportion is what two is to 1. and then after two is to 1 is done then what will happen yeah then it shall be in this ratio 1.5 is to 0.5 or whatever that ratio you have to do that ratio has to do first you will have to you know manage this here and then from that whatever is remaining you have to do it here that is what the loss is that's all the losses so you should always do it in equal proportion in equal proportion between government use ranked equally means not divided by two ranked equally means what equal proportion equal proportion so that is the next part then preferent shareholders then lastly Equity shareholders these are all the various things that we need to see then of course remaining that send use will be what Workman induced Beyond 24 months Airtel broadband and all these other you know Services Etc will only come here guys in the remaining red sand dues employed use more than 12 months correct all that will come here very very in the end it will come so that's why these fellows only are shouting there in Sr steel so the judge said boss if you had gone for liquidation you wouldn't have got anything actually so but then he also made it fair because tomorrow the financial crater should not take them for granted so they said the resolution value distribute in this or liquidation value distribute in this whichever is higher wonderful decision extremely amazing decision that is the same thing is there in the law now finally distribution after it is distributed everything is done resolution when will it be dissolved when the name is struck off from the register which register Roc will go to the ROC the name is struck off finally resolution has happened till there they used to ask but then other bouncer questions used to come like this was never part of the syllabus actually it was there in part of 60 then they started asking in paper 4 also actually all these transactions then many times I am not kidding this one will come to this this part at least three to four times I was concept of voluntary liquidation concept of voluntary liquidation minimum three to four times what do you mean by voluntary liquidation yeah correct so in voluntary liquidation there is no what no default let's say best part there is no default but I don't want to go through the long winding procedure of companies act so I will go through this and you may be surprised at least 400 to 500 companies have gone for voluntary liquidation one of which is my client only two best friends started this iitns they were cleaning the dust from the mobile phones mobile phones when it's manufactured there will be micro micro millimeters of dust inside that cleaning for cleaning separate companies there that goes at fully protected it is it you cannot even you know one spec of dust also can't go so one partner iitn did the entire you know entire uh technique of cleaning one more guy was giving the tech support they started fighting it was a company which would have gone for listing also actually that was how they were growing because every mobile requires cleaning and they are probably one of the best in India but then as I said they were fighting they started fighting they didn't see eye to eye and then they said better now rather than what do you say continuing this me throwing your audio throwing a deadlock it is and Deadlock I don't want to acquire you I have my own thing I can do my own company you can do your own company whatever let's end it so then they went through what section 59 voluntary liquidation is already in India or maybe more now this was like few months ago maybe more have already gone for voluntary liquidation here there is no default but just that other reasons so this they'll ask for four marks what are the what is the procedure declaration has to be given not affidavit declaration audited financial statements you to give valuation report you have to give and the one Oneness declaration when majority of director should agree here both agreed majority is too only then a feed of it where I've made a full inquiry into all the debts there are no debts involved even if debts are existing you can pay because company is completely liquidated properly I mean basically that is it it has liquid assets it can be sold if liquidated it can be uh what do you say every data every person every Creator sorry will get the full payment is what you need to given a feed of its own statement and then you pass an ordinary I mean special resolution generally in general meeting auditory liquidation will happen that is one last to last attempt at us this one fast track insolvency right fast track insolvency Fast Track insolvency is for these things startup small company unlisted company small company definition has changed or crore and will not come here because I'm talking about ibcf company 10 years from incorporation turnover less than 100 code every year Innovation development Improvement scalable business model out of entities is not a startup it should be brand new small company unlisted company so the ones that ask there's an enlisted company with the total assets of 50 lakhs they want to go for insolvency advice people wrote cirp and came you should be careful to understand this unless that company total assets less than or equal to one crore will go under fast track under Fast Track scheme what is it 90 days plus one time extension of 45 days there are 180 plus 98 is what 90 180 Plus 90 will now become 90 Plus 45. and what is the approval for extension 90 days I want to extend to 45 days 75 not 66 percent there this part they have not changed only it is 75 percent it is 75 percent thank you so it is the same so a dedicating Authority as we have seen in CLT and charity Supreme Court sometimes McQ appeal to ncl80 within 30 days you should file and CLT may allow further 15 days appeal to Supreme Court purely on a question of law for example kurusa versus mobilox the interpretation of the word and right so within 45 days from nclt order for the 15 days is allowed offenses and penalties enjoy yeah no point doing all that is not remember but this is important guys you are coming back two three points are there you are one pitch 201 so this is undervalued transaction and also uh you know preferential transactions and also extortionate credit transactions all these things cannot be done all these things cannot be done what do you mean by preferential transactions will come to this preferential transaction means what basically if I sell off the property or interest if I sell off property or interest in such a way that what you what transfer of property or transfer of Interest it says the answer of property or transfer of Interest what do you mean by that Oneness registered mortgage Oneness Equitable mortgage so transfer of property means registered mortgage transfer of Interest means Equitable mortgage so what do you mean by that basically that so much in-depth discretion is not needed but just remember both are the types of mortgages only so basically ownership will be transferred in this eventually so if I transfer the ownership to somebody else I know that the what do you say IPC is going to happen in the next one here I know I will go to one credit R and say boss CIBC is going to happen before that everything goes down you take back your asset and you go or you take enforce security take it and go so that is called as preferential transaction in company law it is called fraudulent preference that cannot be done how long you cannot do a related party you cannot do it two years before cir for non-related party one year before CRP so basically that is what they say so one exam nclt can pass all these orders discharge the contest they have asked for two three marks property will be vested in corporate data sale proceeds has to be returned restitution of benefits I'll give you one or two practical examples quickly so that you will understand what you mean by what is the benefit that you have to return what is the benefit that you need to return is what you need to check on second quickly so very simple just an example of what the nclt can do what you did first and what the mclt will do first delimited has given loan to Z and here's red limited has given security security to delimited now this related party when will you do this you know that the company is going for liquidation so since you're related party two years before ciarp only you know that the company is going for CRP and eventually it will go for liquidation you know two years before only what you do you sell this asset already basically loan you have given security for security they have given year but what have you done sold the assets from the proceeds you are keeping the proceeds Point number one or you have sold the proceeds for the you use the proceeds and bought one more property carp Begins the resolution professional will come to know that you did this he will check all the transactions two years before carp and we'll figure out that one of the people here was Mr D who happened to be the related party we will apply under 43 and 44 and what will the nclt order what will the nclt order they will say Sir two years before only you're done which means you knew about the cirp I'm sure that is what the law says preferential transaction two years before carp one year before CRP for non-related party they will say what reverse gear what should you do return the proceeds and return the another property that you bought from the proceeds Okay one minute we'll give you a video yes that is what return the proceeds or what return the full property back no mercy return the property back also this is the beauty of this this order they are asked ones what all will you do property should be vested back in corporate data sale proceeds will be vested back restitution of benefits you gave me a building I gave you a loan I've rented out the building without asking you I am getting rent imagine I am getting interest back from you and I'm getting rent also from this property that fellow comes to know the RP can you ask me to restore the benefits yes third one restitution of benefits like that so you know those are the various things that you can do there are many such things like that you can you know any everything the law will say you have to restore that is what preferential transaction next is what undervalue transaction in undervalued transaction basically this is your consideration less than the value in income tax whatever 56 to 10 right that one so whatever is valued at 10 crore I'm selling it to you at 8 crore I'm selling it to you at seven crore then for the receiver you will have to pay tax there so similarly here was whatever property valued attemptor how did you sell it at six crore to that person so this is a undervalued transaction when did you do the same one year before carp or two years before CRP for a related party so I will make these transactions void cancel reverse gear give back the property but one question additional they asked I have undervalued transaction sold to you you have sold that property to a bona fide purchaser and I recover that money no indoor management will come and moreover if it's any Goods there was one in Foundation there is one level called Foundation yeah where we had studied one sale of goods one chapter was there in a subject called law so there we had studied one concept Nemo that quad non-habit you cannot transfer to somebody what you don't have but one of the exceptions so that is what this this one is one exception if you have basically if you are not an owner you cannot transfer better ownership to somebody I have company has sold a property of 10 crore to you at 5 crore basically you are not an owner because I have fraudulently done this you have used that FICO and sold it to somebody at seven crore but he has bought it in good faith good some good can you ask him to return no general rule you cannot transfer to somebody what you don't have or do you have the ownership no basically you can't transfer better ownership but exception to that is this the law specifically States Bonafide for Value if somebody has purchased he can return the goods no problem he can return I mean sorry he need not return the goods he can keep the goods if he can prove that the purchase was good faith here that transaction is void but revision of yesterday 192 non-cash transaction under companies act I will give you a building you give me shares that is what avoidable that is voidable 188 related party avoidable 180 that is sale lease or otherwise dispose then it will become world these are some of the things last part is extortionate credit transactions extortionate and then what are the orders orders are the same thing as restore set aside modifier that what are these extortionate trade transactions so in that Raha financials only I understood the meaning of real meaning of extortionate trade transactions raw financials they had looted money no 20 crore and all those things but the main reason why they succeeded is because of human greed because that fellow or our financials when he took money from my client and all he told sir I will give you two percent per month two percent per month 24 percent then he said sir you bring your relatives also for them I'll give two percent for you and actually for them I'll give one and half percent and at half percent I will pass it on to you plus extra half percent I'll give you so basically three percent per month I'll give that is the scam that he did three percent per month is 36 percent per annum and he did that also for the first three four months he gave he gave for four or five months actually people trusted him then he again went to him and told Uncle once came sorry one scheme is there ah what scheme a new scheme is there you bring more one crore more I'll give you four percent that two or two almost five percent per month he had one what he was doing is very simple he used to take money from you it's a Ponzi scheme take money from you pay somebody else take money from him pay you like that kept on taking money he didn't invest anything in the stock market he himself bought a BMW car and all right the main guy that's it then One Fine Day somewhere it will stop now then he ran away correct so that's what happened so with this we went to the uh you know Police Commissioner I remember crime Branch head crime Branch head in that infantry Road right I had gone with this client they were sitting that guy came the police commissioner he asked what is the thing first 20 crore he laughed I said that small amount and I'm sorry we are doing that ready fellow now you are coming that fellow having daughter's wedding and all is organizing openly you know 200 300 crores he spent on the daughter's wedding there was a invitation video invitation all of them singing dancing right and one invitation was some two three lakhs not joking crazy so I am doing that thing sir and you are coming for 20 crores and all that what is this and anyway tell me sir okay that's fine let's assume that we can do something about it what was the interest rate that he offered you my client and bakra fellow he told the truth sir three percent sir three percent per annum no no three percent per month so he said you will be jailed the moment you openly tell like this I am your assume I am your friend I'm not gonna do anything you are actually telling a police officer I am going to assume that you did not tell me only he actually was sweet he said I'm assuming I'm you are not telling me otherwise you will be jailed he said there is one law in 1925 you can go check then I realized there's a law I went and checked online it is called usurious loans Act it was actually created in Tamil Nadu because everyone used to give one day loan 100 rupees I'll give you return Back 40 rupees with interest 40 rupees three percent per day four percent per day ten percent per day and all even till today it is there people take thousand rupees by the end of the day they have to give 100 rupees back 10 interest per day how many 300 percent per month 3600 percent it is there and is still there it is still there normal small small money lenders do this only usurious loans act for that in Tamil Nadu it is highly prevalent I had told us in class one of my uh students who is now uh is studying law in general University she did on thesis also on usually a Sloan checked and she did the full what do you say entire you know thesis on this insurance loans actually tagged me on said like what did I do right I just told you the name mysterious long said poor thing nice so first he tagged me saying that because of you I got to know I said I also got to know because of that guy so anyway Insurance loan set deadly but she had done a nice you know analysis of that and I got to know from her it was highly prevalent in Tamil Nadu actually but it's there across the country also yes so he said you will be jailed under this sir because you are not supposed to take more than 24 percent per annum you are actually lending at the end of the what have you done lent money lent money and your in that you are taking 36 percent if you invest in other things it's fine but this is lending money because what they had done is they had taken it as sole proprietorship and from sole proprietorship that lent it to the company all that scam they are done so ultimately for my client he didn't invest in the company he lent it to a sole proprietor so their usurious loans Act so you will be jailed sir so I am considering myself to be your friend and I am not hearing it I am sitting here as your friend not as a commissioner he told all of your Witnesses because if you tell this to me as a police officer waiting down jail like a usurious loans act because I'll first take you for investigation so I did not even know that there was a law like this that is called extortionate credit transaction in contract actress something which is unconscionable means what you cannot even think of it how can I think of 36 percent per annum right so that is what it is that is what they did that is what raw financials did so like that there are so many raw financials Raha in the Hindi means what way they showed the way to themselves and they and all right yeah so that is wrong it was on JP nagar Main Road it was superb office yeah telling you everything see for my clients at least they'll save today that client no he was actually having some 10 crore worth of property today is taking anti-depressing depression medications very sad to see him when I went to Coffee day I had seen him two years ago full bubbly in coffee day sitting like a dead body I like hello sir how are you who is not even talking I could not believe that I was seeing him so if you see even today is like that his wife just yesterday his wife there's one group also she has become the husband of everything now she was a homemaker she had no clue about all these things husband has invested without informing anybody gone one property here one more rare fraud also is caught there he had bought a 4060 property in gurugram uh and he went there it was a four by six One beta shop he has to put that poor guy very very sad guys and it is you know you feel like laughing I know but it is very sad actually extremely painfully see his eyes he can't even Cry tears are dried up so if you see sad so that's why you should not do any of those things we should not be greedy is what they say generally but we will not listen yes extortionate credit transaction there's a movie also no tombard yeah please watch that movie after exams right if you haven't watched already beautiful movie it is one of the most original movies ever to come in India but then it is super flop movie because people don't understand such movies super duper flop it was nobody understood only that movie so it is all about human greed it is all about human some three four songs I know it added there would have become a hit yeah so that is the form so unconscionable conscionable transactions required so like this if you have given anything which is extortionate credit transaction require the corporate data to make exorbitant payments in respect of credit provided or are unconscious unconscionable one of the principles of law relating to contracts then they are called as extortionate grid like this if you have given money for three percent four percent like that then obviously they will restore everything restore refund modify require all these things they'll do so this is what this provision is all about so we shall watch a video after which we will just little bit Basics that's oh sorry one more is there we'll finish this this one part is there we should not leave anything insolvency professional did we not do this oh no insolvency professional or this is also one more thing guys no individuals shall be eligible to be registered page number 209. 209 after this only the prepackaged comes but here 209 no individuals will be eligible to be registered as an insolvency professional if he is a minor is not a person resident in India does not have qualification and experience specified in regulation five means in solvency exam you have to do convicted moral turpitude all these things seven years means permanent disqualification undistarged in solvent same declared a sound mind it should be a fit and proper person if he is not a better and proper person he is not qualified now one beautiful thing is under pmla assets can be confiscated correct under PML assets can be confiscated but under this thing what do you say IBC assets will be left now this one more question before that I told you this assets will be restored no restored those assets will it form part of liquidation and state or not whatever assets have taken back from the real estate party etcetera will it form part of liquidation estate yes I told you I'll do it later no this only see this too assets or their value recovered through proceedings and this one also assets issued as a collateral over which creditors have relinquished the rights asset relinquish the rights and the Creator will stand in second in line those assets right those two assets and this is recovered through proceedings what proceedings 43 45 46 those proceedings so whatever I have recovered that also will be added part of my liquidation Assets Now linking the proceedings only the question is under pmla which is a criminal legislation criminal legislation who is standing there this special court has ordered for confiscation of the goods of the property but this fellow has put it in this liquidation state now the question is IBC lower right pmla or PML level over at IBC if you go to pmla section 71 it says not to excel anything contained if you come to IBC they are not with sending anything contained both will be fighting so but the entire deal has come to an end now because of one section which they have introduced afresh nirmala Madam's idea 32 capital a here it is last page 210. 29 provisions of this code will override other laws IBC will override inconsideration or the loss but most importantly this one 32 capital A has been inserted relatively new section they say two things one the moment new company has taken over which is not linked to Old promoter not linked to any fraudulent person brand new management correct this is like what do you say mega statue permanent statue don't come and take away my assets it's already mine now I don't care if PML everything is there it will not be attached this also many cases are pending as of today claiming 32 a to be unconstitutional because 32A is actually barring other loss from taking over the assets especially a criminal law pmls criminal law IBC civil so rotomac in rotomac Vikram Qatari is the owner of rotomac pens used to come right before so rotomac case he said that that is criminal that is civil it should go hand in hand but 32A has completely nullified that supreme court judgment of rotomac and now they are telling under pmla if any confiscation you can make and pay off other people not allowed they say no action shall be taken against any property in relation to any offense committed prior to the commencement of cirp where such properties covered under a resolution plan and approved by adjudicating Authority which results in what change in control of the corporate data to a person who is not promoter of the world Court no old promoter is there don't worry and no person who is guilty is there here brand new management don't come and touch any asset even if it is attached before I don't care even if you want to confiscate I will not allow so what do you mean by no action no action means what they have explained that also no attachment no seizure attachment seizure both are the same but in pmla they have used the word attachment no seizure no attachment no retention if you say if you don't want to use that seizure attachment you lose the word retention no retention also and no confiscation also of such property so deadly point this is so finally guys to just quickly revise before we you know uh watch that video and then do the basics of this is the entire uh chart with respect to IVC so let us just quickly see that if it comes so that is the entire full-blown chart with respect to the IBC provisions let's see once again so first you will apply to the what do you say double A apply to double a within 14 days that fellow will admit or reject the application coming the moment you admit the application cirp begins and within seven days you will communicate with the corporate data appointment of IRP begins appointment of IRP the moment you appoint IRP within three days Public Announcement IRP to verify the claims constitution of coc and then first meeting of coc the tenure of the IRP is still the date that what is RP is appointed the day the RP is appointed and then circulation of information memorandum and mind you the moment the begins 180 days will begin 180 then it can be extended to 90 overall 330. so circulation of information memorandum resolution applicant submit resolution plan approval of plan by COC submission of plan to nclt then acceptance rejection of plan and of course you can go for one time extension of 90 days that is what there is to it and of course CRP will begin from the date of admission of application that also we have seen so that was regarding and now as I told you many other companies could not go through this entire uh cirp especially msme micro small medium Enterprises could not go through because of various problems that they encountered so to ensure that they will get a Level Playing Field uh government has introduced one more that is pre-packaged insolvency resolution process this is all based on various committee reports they were discussing various committee reports that this has to be done that's the reason why the pp IRP concept came into the entire picture because it was important imperative for them also to do so so only you should remember what is this msme and remaining you can of course see the uh what do you say the other part of the video which I'll be sharing there you can check it out basically micro small medium Enterprise micro Enterprise is what investment in plant and missionary not more than one crop an annual term no are not more than five crore investment in plant and machinery not more than 10 crore and for small it is FICO it is basically 1 into 10 Y into 10 after that into 5 into 5. that's remember one and five then into 10 into 10 then whatever you get here 10 950 into 5 into 5. 10 5 is of 50 and then 50 into 50 is 250 crore so this you have to remember and go then basically the pre-packaged insolvency process will be the first year to make an application this is before cirp any other process begins it's very easy guys that I will put later this also they may ask one question here and there this one question here and the other two questions will come but all the base once you figure out the base which you have done till now that's all there is to it so let's watch a video Now quickly foreign contribution regulation Act extremely important again page number 278 goal so foreign contribution regulation act and there have been of course uh amendments as well in this particular area yeah apart from that quickly in the IBC part there is two three amendments you'll just finish it off one is this admission or rejection of claims is when I am doing phase 199. in admission and rejection of claims one extra point is the Liquidator will verify the claims within 30 days we'll verify the claims within 30 days and you will also verify just like any claim it was not submitted can be submitted within 90th day of the insolvency commencement date if you remember right I am doing page 199 in page 199 first is admission rejection of claims it is within 30 days and if you remember any in CRP you can still give the claim how much how many days 98th Day from the insolvency commencement date similarly the Liquidator also shall verify the claims collated during the Circ but not submitted during cirp had submitted the claim the company is going for liquidation now I have not submitted again liquidation should I submit it again yes I have not submitted can we process that claim yes within 30 days from the last date of receipt of claims during liquidation process May either admit or reject the so first we saw there claim which you did not admit only you can admit it within 90 90th Day from the insolvency commencement rate for cirp let's say carp have admitted properly I have submitted that's admitted also again liquidation I have to submit I forgot to submit but later can you still accept it yes how many days 30 days from the last day for reset of the claims I can still go ahead if you have already submitted during cirp you can again further submit it here this is one more amendment that has come couple of things we had to do this I thought I'll do it one shot in page 193 in page 193 they can I mean they have added one point here they have added one point that is meetings of the like meetings of the board tell me who will call meetings of normal board meeting the company secretary and Company secretary will call if the director requests similarly here resolution profession May convene the meeting if he feels necessary but if the COC how many 33 percent of voting rights if they say that I have to please call a meeting then I have to call a meeting they have to call a meeting any proposal also same 33 percent that remember that and go 33 percent of voting rights 33 percent of voting rates then involuntary liquidation page 202 involuntary liquidation The insolvency Professional the insolvency professional shell within seven days earlier it was just three days within seven days from the date of his appointment intimately ibbi so the insolvency professional once is appointed as Liquidator within five five days seven days sorry he will intimate McQ they can ask within seven days he should intimate the ibbi office appointment involuntary liquidation menu involuntary liquidation only involuntary liquidation and any NCB lodr these things are there guys lodr City please study this because one changes this 21 days from the end of the quarter instead of 15 days everything is there this material is already given in my in my telegram group and of course the types of committees few changes have come so please read that and Go properly in terms of independent director and especially here 234 all the changes I have given here it's very simple these are the old Provisions you can ignore these provisions and make these changes correct make those changes is what it is couple of changes like that are there and all that but yeah of course coming to the fcra part which anyway will do now credit hours this is like a compromise and arrangement compromise and Arrangement which we discussed in a more structured manner under IVC compromise an arrangement in a structured manner under IBC is pre-pack it's a quasi-formal procedure quasi means resembling it resembles a procedure where the resolution plan is finalized before the actual initiation of the proceedings Only Imagine compromise sir things are not working well sir if I go for IBC nobody will come sir that let's keep that as a last resort let's try this route if this also nobody comes and I'll go there then it's my fate my destiny but at least let me try it under this law is what this law is all about quasi formal procedure so where we decide the entire package before we even initiate any proceedings the entire framework of pre-pack revolves around the corporate data having control of its entity control to manage fso unlike IDC where the position will be transferred to the Creator sheer Position will remain with the debtors motivation for a debt burden stressed out corporate data in pre-pack is to figure out an agreeable way for its own corporate Revival and save itself from its death for the Creator's feedback would be a faster route even though section 12 of the code maximum is 330 days process does not end within 180 days Etc so here there is something different time limit and all that we will see benefits of course cost Effectiveness guys because the corporate data continues with the existing management during pre-pack it avoids the cost of disruption in msme one day disrupted activity gone it does not shift the management to the resolution professional at all and then it does not shift to the resolution applicant initially later it does it also saves cost of the resolution professional to manage the business see resolution profession IBC has to figure out everything and start managing the business it will take time you have nothing and the process remains away from the Limelight till the commencement of the formal process so until the process begins it is away from the Limelight nobody knows about it you are still talking behind closed doors within four walls with the creditors and arriving at a compromise or arrangement in a structured format so compromise Arrangement is under 230 231 of companies act render pre-packaged it has been structured into that 54 ABCD series proceedings are usually outside the court costs are produced Speedy resolution process it is difficult to keep the company alive in a stressful state that's why it enables a faster resolution preserves the value of stress assets thereby increasing the possibility of resolution value maximization any distressor has a life cycle and the longer it stays in a state of stress greater depletion It suffers so here it preserves the value by cutting down these elements of the formal process less burden on quotes also the courts are overburdened with cases do not have the capacity to deal with cases a pre-pack has the potential to reduce litigation due to its informal and consensual nature consensual means two people are agreeing they say yes I agree let's do it does not require at any cost any involvement of Court during the informal part of the process and requires a minimum roll of Court as well there is a need to have a functional out of court restructuring process since the vast majority of cases are restructured out of bankruptcy so this is an out of court settlement sort of a thing guys and most importantly the entire structure is semi-formal more they go into mediation and conciliation so arbitration is where there is already a dispute but there is still this you know ill will or bad will between me and you in arbitration in conciliation I try to empathize in mediation there will be a mediator who will try to settle the dispute so this is more like conciliation and mediation the biggest Advantage is that the proposed resolution plans are not under any form of scrutiny of the Public Public will not know at all foreign wants to know your nation will not know under any circumstance it's a small company it is a micro small msme I like the backbone of the economy to be very honest how many big big companies do you see okay how many is very small small you know your unincorporated yes India unincorporated can be the backbone but they do not pay taxes all your panipuri fellows and all those things you will cannot underestimate them guys you cannot underestimate I was just reading something that where one guy went to when I went on a train and when Samosa fellow came and he had fully finished that Samosa that day he was very happy he's just a samosa seller we feel sad we just asked him so this guy asked him he's a child account and only asked him sir okay I hope today are very happy yes sir I sold all the samosas today good good how much do you make isn't it very tough during the pandemic sir during the pandemic it was fine but now it's brisk business how many do you sell 33 000 per day because I go in these trains three thousand so do you manufacture three thousand someone says no Samosa manufacturer is there in bulk he gives I just sell how much do you get so I get one rupee per samosa so whatever I'm charging some 15 rupees I'll give him 15 he'll give me one rupee from that I'll take one so think about it three thousand Samosa is three thousand rupees per day three thousand into Thirty ninety thousand rupees per month no tax no Mi nothing ninety thousand Hard Cash For Us TDS take home salary right take home what is your take home what is your CTC what is your take home if you see employees don't care about CTC hey that is cost to company tell me my take home salary I'll have to look at my expenses from take home salary so 90 000 so you should never underestimate these people they are the real unincorporated really minting money not all of course but it's a lot of hard work guys but then you you are also working hard no you are also working hard after following all the laws we are working hard there they are also slogging No Doubt but what is the point of Education I showed you that Dosa video that day one end of like rupees per month is making profit yes there's a lot of hard work yes everything I agree but one end of lacks no tax nothing so here also but the real backbone of the economy are the Incorporated institutions like msme which give employment of 50 people 100 people like that there are thousands and lacks of msmes giving employment like that so larger larger than larger corporations like Infosys we Pro yes they are a different League altogether Incorporated is a different League where no money comes into the system at all they are just basically nothing comes to the government there cannot be any development whatever government is getting is Major chunk without a doubt is from this msme so the government wanted to help them revive rather than kill the company because killing a company would be like killing of a dream and once a dream is killed then that's it so the government is trying to do something one one such thing was as the startup which has the ability for Innovation and expansion Beyond Compare comparison but here this is to ensure that you know things start going ahead moving ahead need for advertisement and all is not there guys so it incentivizes the party to propose better terms and also protect the integrity and Goodwill of the business only after a final agreement is reached then I will go to the court basically compromise an arrangement in a restructured format is pre-packaged and it adopts a flexible approach the pre-pack follows a debtor in possession model it's a totally against IBC its data and possession model management is not transferred to RP so these fellows thank you unfortunately see the hair cut that other companies have taken you will be shocked Sr steel they took a 23 percent haircut bhushan steel 38 haircut see Videocon Videocon corn on latest con job 94 haircut 46 000 crore they settled at 2900 crore this is the state of big companies what will come to msme what is how much will you 10 lakhs 15 lakhs so when these big big companies only are dying with this haircut this is shave only where haircut s are full shave little bit you leave yourself a style that's it at 94 percent full service no air cut there so that's the problem guys and delay also due to covet more than 270 days 738 cases 738k till now I'm in the January March of 2020 some total admit case are 3774 cases so many cases guys loads of cases so if you see they took the model of us and sick industry companies act which spoke about debtors in possession U.S also debtors in possession the time frame took a longer time so that model only they took that are in position model and they're framed as pre-pack the control and management being wasted with the corporate data it is necessary to Pivot a set of responsibilities and duties towards the creators in addition to the fiduciary duties checks and balances to ensure the interest of the craters are protected they're always protected conduct of the corporate are as such or where there is no viable business so process of pre-pack is very simple COC can buy 66 percent of the voting present close the process of pre-pack where the conduct of the corporate data is such that there is no viable business model then the COC by 75 voting decide in favor of liquidation role of the RP there is no shift in management mind you but you have to ensure that all the dealings are fair and transparent and the entire pre-packaged insolvency should take care but he doesn't take control of the business that's the best part he is more of a advisory role supervisory role than a managerial role costs are also involved access to interim Finance I need to get so guys 240 capital A of the code provides that the code is applicable to micro small medium Enterprises this came from 4th April 2021 for the first time ever this will come in December 2021 but as I told you Institute when all eyes are on pre-pack they will also give Pros to three amendments also two three attempt amendments which you have done so don't only concentrate on this also concentrate on that for all you know one question Also may not come I'm just saying then it will come in May 22 and all those things so but you never know Institute may think that we will think like this then they'll give correct so do not play with the Institute you cannot so they have been playing since a long time let them play Let's be prepared for this also and the previous one also previous one anyway we have done so much in depth eight and of nine hours yesterday we have discussed so today will be checking this quickly so as however considering the MSM is limited Capital Easy corporate structure Etc cirp may not be feasible for them right apart from considering that the increased default of one one lakh to one crore obviously the msme conceptually will be eliminated with one crore and all those things that is why by virtue of notification on 9th April minimum threshold is how much guys default of 10 lakh or more important for msme what is the minimum default 10 lakh or more before 24th March 2020 normal companies one lakh right so 24th March onwards one crore but for msme whatever it is from 9th April 2021 10 lakh or more it's a very recent change important what do you mean by msme this is applicable from first July 2020 as per the msme regulations the composite criteria is what guys investment in plant and missionary or equipment and annual turnover so msme is only selling Pani Puri or everything is it a good or service both manufacturing Enterprises and Enterprises rendering Services both micro means what investment in plant and missionary or equipment not more than one CR less than or equal to 1 CR and and and annual turnover not more than 5cr micro into 10 is small how much less than or equal to 10 CR what investment in plantar machinery then turnover 50 crore small into Phi is medium how much 50 crore and turnover OK not more than 250 crore turnover not more than 250 crore so investment one crore turnover 5 crore into ten ten crore 50 crore into 5 50 crore 250 crore foreign onwards what is the default 10 lakhs or more then which companies micro small medium Enterprises registered as an msme and what is microsman medium Enterprises this one less than or equal to one crore and five crore 10 crore T cross if you just see the msme uh you know website there is this uh registration you have to get done called udyam registration so you can just go to this msme .gov dot in yes we'll close the picture yes our Olympic medalist gold medalist yeah so that's the thing yeah then because of all these things you can check udyam registration then here only if you see no what is Amazon there only I copied what is msme on dialogue what's MS me it will open yes thank you sir thank you so much yes so if you see all this is the scene you have to register new entrepreneurs all these things registration portal they have given your you should organize a full thing entire procedure it will take you there is a registration booklet I've given so basically you should have done all these things guys Enterprise will get a udyan registration self declaration no requirement upload any documents paper certificate it's a self declaration again it's all you know ease of business then composite criteria both criteria should be specified all units with GST in that is listed against the same pan shall be collected as one Enterprise internal or investment figures for all shall be seen together if you just have one GST number many branches you have many divisions you have then under one GST number that's it beside in the category of micro small medium Enterprise investment calculation of investment in plant and missionary will be linked to income tax return where no priority is available investment elevation self declaration all these things again everything even the plant and missionary will be as per income tax rules you have to have an invoice obviously turnover export of good Services both shall be excluded because here I am not talking about exports I am talking about in India then everything turnover exports will be seen as per the income tax act and GST Act it's about to know a normal turnover thank you thank you yes yes we will end today don't worry yeah so that is the thing so 250 CR same thing come back so with that this ordinance first of all amendment of section four I have given all the Amendments here in this um sequence so one is amendment number four which obviously speaks about one crore and also from ninth April onwards 10 lakhs we've already seen this now they speak something about the base resolution plan then corporate applicant everywhere they have changed guys first is base resolution plan divided Phi Clause 2A base resolution plan means a resolution plan provided by the corporate data under 54 4A so basically corporate data they themselves will give a base resolution plan the resolution plan given by resolution applicant is called resolution plan resolution plan given by corporate data itself msme saying that boss we will change now please follow let's follow this it's like this compromise and Arrangement plan it's called base resolution plan corporate applicant you know who is a corporate applicant in section number 10 of IBC we have seen corporate the applicant will be a person from the corporate you know person who either either the CEO CFO manager who is authorized but here in this definition they have also added member or partner of the corporate data who's authorized to make an application for corporate insolvency resolution process or this is the addition pre-packaged insolvency resolution process means what even if you are a member or partner of the msme you will be coming up by the way guys msme should be sole proprietorship or partnership firm or company msme honestly speaking msme can be anything gender msme I'm talking about msme under udham registration it can be anything it can be any entity partnership firm it can be sole proprietorship it can be company no problem but here what will it come what individual will not be coming here so here it is what partnership from also is not there here it can be LLP and Company LLP and Company but technically msme can be anything foreign so we have to wait and see that in the future they may also allow individuals forms everybody because it's a separate category of sections only know so 54 years msme so please come everything can be allowed it just came now so we need to wait and watch still cases are slowly building up those cases that are now pending are only with respect to companies and all that tomorrow anybody registered as an msme can go through this actually so in that sense of the term it is an entire addition to the concept of IBC so IBC has cirp different bankruptcy different than msme different got it so and the best part is concept only is reverse but keeping the Preamble in mind maximization of value and also maximization of assets and promoting entrepreneurship if you see in the Preamble but rather than a creditor's position we still have the debtors position so that concept is different here that we need to understand so that's why if you see your individual but here only they gives you a member or partner of the corporate data was authorized so corporate data will be what company and LLP that's why I'm saying initiation date is when I make an application who will make an application operation creator or here in this case corporate applicant will make a application under pre-packaged insolvency resolution process foreign Finance yes even in pre-package and solvency process you can take infinite these are only the Amendments that have added everywhere lines who is an officer officer will be asked per 2 Clause 60 of companies Act designated partner an officer will also apply to chapter number 6 and 7. so this entire msme starts from 50. 4A is you know your chapter 3A the chapter 3A also gets covered as part of this chapter 6 and 7 is linked to three anyway two class 60 is again defined this is two closest companies act officer will come here so you need to submit something called as a preliminary information memorandum all that we'll see then pre-packaged insolvency resolution process cost pre-packaged insolvency resolution process period all these definitions we'll see as and when we see the things foreign persons who are not entitled to make application remember who all corporate data are undergoing a cirp cannot make or now also they've added what pre-packaged insolvency resolution process a corporate that are undergo remember section 11 who cannot make application under cirp first corporate data was undergoing CRP but you can put under put against another company that we have seen but he himself cannot put now even if you are going through pre-packaged let it did it finish no why hurry it finish is what they are saying then double A has been added a financial creditor or operational grade very very important oh Financial crater or operational Creator cannot make an application to an msme who is undergoing pre-packaged insolvency process when I am going through pre-packaged insolvency process the financial Creator cannot go to ncltnj put cirp there in CLT will say wait bro let it go let them do we are finishing it no let then finish first of all corporate data itself cannot go and go to nclt when pre-package is going on second and the pre-package is going on I'm trying to revive I am trying to really genuinely trying to help when you are going there and sabotaging my entire operation by uh you know applying potentiality under cirp right that's why that time I didn't do all this when doing normal IPC because you would not have understood now you are understanding this is a separate process guys please understand separate process corporate that are having this is fine B is in ba corporate data in respect of whom a resolution plan has been approved under chapter 3A 12 months so basically if of your base resolution plan or any resolution plan under has already approved wait for 12 months no same like before carp also if you undergone wait for 12 months here also if you have undergone this wait for 12 months before you apply for cirp dpirp plus 12 months at least wait after that you can go for cir these yellow things are the changes in double A becomes very important because when ppirp is going on financial crater operational Creator cannot come into the picture who puts the entire thing gives the plan Etc corporate data puts the entire thing applicant is the corporate data foreign capital a 54 capital a corporate data will be the msme that is company or LLP as of now as I told you it has only come near an LLP as I told you tomorrow going forward they can say all msme please come because as of now they have only told in that definition they have changed what corporate data who is an msme you see 240 capital a see I told you no in 29 capital A there was all these Provisions there that given a guideline saying that it's okay no problem then you see 240 tablet notwithstanding anything to the contrary content in this code provisions of 29 Capital either to C and H those two deadly sections are there shall not apply to resolution applicant in case of cirp or pre-packaged of any micro small medium Enterprise means if you are a promoter you can still take over the msme provided you are not a willful defaulter subject to subsection on the central government May in public interest by notification that happened on 9th April only direct any of the provisions shall not apply to msme or shall apply to msme again it applies to MSM this will be laid before the parliament same thing happened all this is fine for the purpose of this section expression msme means any Clauses of Enterprises classified as msme that we have seen so 54 capital a corporate data who's an msme means company or LLP you know micro small medium one to five into ten into five default how much section number four greater than or equal to 10 lakhs default greater than or equal to 10 lakhs online people just quickly picture picture picture first picture these three right because you will take time for you to sit and copy everything so just take a picture first is these three second here conditions what are the cumulative conditions within three it's all there in 54 capital A this is just revision I'm doing within three years before the application which application ppirp application should not have completed CRP or should not have completed ppirp this is before which application application of ppirp if you are making an application of ppirp you should not have completed ppirp or cirp within how much three years three years minimum three years you should not have give breathing space my Indo section 11 don't get confused section 11 is for cirp 12 months that is for CI orp don't get confused this is pprp application second you should not be undergoing cirp you're already undergoing CRP you cannot come back to pparp if the nclt is already told hey you die I am pulling the plug after pulling the plug cannot come to ppirp and you must be eligible to sub be submit award resolution plan under 29 capital a corporate data itself is eligible to submit a resolution plan under 29 capital A but we just saw now 240 Capital laces if you are a msme that is a promoter Maybe you are eligible no problem provided you are not a willful default uh insolvency professional to be appointed as resolution professional insolvency professional to be appointed as resolution professional so guys here there are two concepts the insolvency professional so first of all who will apply msme only I want to do this ppirp okay but resolution professional who will appoint company or financial creditor see the difference in IBC who will appoint RP Financial crater who will apply also under to nclt financial crater here we will apply msme rule upon RP Financial crater proposal there are two things first proposal will come then approval will come that is why it is different proposal will be given by Financial crater who are not what related party a financial crater non-related party who has minimum 10 percent value of the total financial debt and what is this total financial debt debt due to non-related party Financial craters if the entire financial debt of the company was let us say one CR in that related party only at given 40 lakhs and non-related party are given 60 lakhs msme guys lot of related by transactions will be there family I'll take from family only so 60 lakhs is the non-related party Financial crater so in that proposal should move from anybody who has given minimum 6 lakh loan did you understand yes anybody online people are understanding I told you this is not nowhere related to IBC in any way it is a completely different process online they are like you do whatever you want today is the last day right yes so 10 lakhs sorry 6 lakhs in this example they will make a proposal they will give a proposal and approval finally that proposal approval should happen what how many people under 54 a to E I am happy that that 60 classes got over that IBC classes got over before this because in that we analyzed full in-depth and made these charts so for Fast Track it becomes very easy otherwise you have to do everything now anyway so 54 a to e the financial crater non-related party this is approval how many percentage 66 percent of the total financial debt again that due to non-related party means what guys in that 60 lakh proposal will come from 60 lakhs six lakh sorry but approval will be 6 into 66 percent sorry 60 lakh into 66 percent approval will be 60 lakh into 66 percent coded so these are all only this you study and go more than enough I have taken honestly in the regulation is not part of the syllabus by the way what institute always expect the unexpected institute's tagline only should be like that icai always expect the unexpected regulations are not there still I have given the regulations it's given in the addendum also and fast track students no need to touch the addendum also leave it study these charts enough then declaration or Declaration if from fourth Point okay quickly fourth Point eligible to submit resolution plan professional to be appointed as a resolution so I for you if you are an insolvency professional see the opportunities you can be interim resolution professional resolution professional Liquidator then now under this also API RP You Can Be You Can Be authorized representative home buyers correct superb opportunities and to pass the exam yeah that is there but uh you need to pass that but if you pass apart from CA you will have that also right declaration majority what declaration you should give we'll see how many should give guys majority of the directors if corporate data is a company and majority of the partners if corporate data is LLP so these provisions of msme as of now are only applicable as I told you to company an LLP tomorrow they can add anything also as of now this this many things and regulation 16 you should do it in form number P6 regulation number and all not needed but form number P6 is the regulation so application of ppirp should happen within you know 90 days of what we'll see and of this declaration so we will make a declaration saying that everything is okay absolutely no problem we are not doing to cheat anybody we are genuinely trying to revive and within that 90 days of Declaration what will you do that's what I am not doing it to not to defraud anybody and I swear that I'll make an application within 90 days in the Declaration you should tell that I am making a declaration now declaring that within 90 days I will definitely apply under ppirp and then also name of the IP decided before that I will go to the financial crisis that's what pre-packaged First Step go and put one diode to financial creditor sir no money please help so we can either do compromise and arrangement in company or sir we can do this new thing called ppirp so first what we will do sir first you propose one IP so that non-related parties are in this one crore loan that I have taken 40 lakhs my family members only have given so that you leave I'll handle them where my family members no tension they know that I'm on waste body they have already invested that money gone now so you leave you 60 lakhs you have paid in that you propose sir propose majority is always simple majority there's no percentage more than half when I say majority it's always more than half unless otherwise specified so then approval so among 60 lakhs sir you only make one meeting this is not called COC and all that don't use those words it's not COC it's just one meeting of all the creators and you approve this 66 percent after that sir I will give a declaration majority of the directors will sign saying that I will make an application within 90 days I will not defraud anyone and also you have suggested that IP that fellows name I'm reading writing in the Declaration not just that guys apart from that if corporate data is a company I also need to attach a special resolution and if a corporate data is LLP three fourth of the partner should agree doing what approving the application for ppirp if they ask you what are the conditions under which bpirp can be granted six marks copy paste these points full six marks you will get first of all condition within three years before application should not have completed ppirp or cirp this is a combined reading of the Act and the regulation nothing is missed out second you are not undergoing any CRP third one no liquidation order fourth should be eligible to submit resolution plan under 29 capital A fifth one insolvency professional to be appointed as per a proposal by Financial craters who are non-related Party minimum 10 value and then approval as per 548 to E 66 percent value of the total financial debt non-related party financial debt then declaration should be taken by the majority saying that I will apply within 90 days not to defraud anybody name of the IP as Rip above and along with that I need to attach what special resolution and the financial crater was a non-related party with a 66 percent will approve the filing guys two approvals are needed mind you important two approvals are needed by this fellow FC first approval is this approval of IEP so first only I'll go and beg him no first I'll put one dive in that dive I'll tell sir please propose somebody and approve then after that dive I will go and finish all this process then one more dive these are all the documents are in in your near your legs please bless me one more approval 66 percent where is Courtyard where is nclt nothing pre-packaged in solvency resolution process in form number F4 P4 sorry form number P4 this is a profiling of the application first I have to approve the IP then approve filing of the application then in 5 and 8 where there is no FC or all FC related parties then what to do for all the relatives are asking me when are you doing CA what are you doing CA every year for all that Revenge I took money from them only and msme went down all Financial craters are my related parties what to do then then decision to be taken by OC operational crater or non-related party so before this approval that's what corporator to give declaration under Point number six special resolution Point number Mission and this is the thing base resolution plan telling that sir this is my plan sir you see legal begging instead of compromise Arrangement sir as I told you business always operates in a very Dynamic environment things keep changing during covet times people who are supplying sanitizers and gloves tubes then injections all these people minted money still minting money but others like food industry Etc wiped out many such good restaurants many such good ice cream places to my sadness closed down right so the thing is you need to give this particular again approval declaration everything this 66 percent majority you give a base resolution plan telling how you are going to change things that is this part how am I going to change things this is the full chart with respect to 54 a now tell me guys one interesting point cirp application also is pending by Financial crater at the same time I have gone and begged and I put a pprp application what will I follow no the application answer admitted what what was the scene there if a CRP is already undergoing CRP undergoing CRP means what that fellow should have accepted no I am saying it's pending I have still applied that 14 days time they are not admitted so can I put carp can I put ppirp that's why it's not given what does it say you should not be undergoing CRP okay I have just applied so guys that also can be a potential question that's why 11 capital A is there the application under cirp sorry under ppirp is to be given under 54c three conditions first application is this it's already there what pprp application is already put put in second application immediately One Financial Credit or did not agree to this base resolution plan has directly gone to cirp correct so the application should be taken approval and then you should go to NCL obviously they should see the plan and all those things and then no finally decide so first application 54c has already been applied in next one day Only One Financial crater who did not like the deal directly goes to seven nine ten nine corporate data sorry the operational Creator 10 majority should agree no in this thing application other directors go and apply under 10. what to do so the solution given under 11 capital is double A nclt should admit or reject 54c first then consider second application 54 c means pprp next first application is under seven nine ten I come to know application done so immediately I will create a base resolution plan within 14 days I'll put a 54c why remember seven nine ten within 14 days within 14 days it has to be applied approved by approved or rejected by nclt in that Gap 14 days to ensure that it doesn't go through cirp I will put 54c within 14 days or to do beautiful Laura says please consider 54c first only then 7 9 10. because pprp should be the first preference only then other things one more thing 7 9 10 already applied 14 days over guys I have told you that 14 days is mandatory or discretionary discretionary but law is the law within 14 days if you had applied 54c no problem but 14 days already over that fellow still hasn't admitted the application because if you remember Surendra Trading Company we are clearly seen 14 days is not mandatory 14 days accepting or rejecting is discretionary so that case is still taken up by nclt they are still seeing whether to admit or reject but you have delayed you have filed Beyond 14 days then what to do have not followed the timeline 7 9 10 to be disposed of means first here 7 9 10 whether you accept or reject if you happen to reject it only then 54 C did you get this guys yes or no this is the other thing 54c first seven nine ten later admit or is equity forces then consider second application 7 9 10 54c within 14 days 54 C to be considered was only then seven nine ten seven nine ten first 54c is there but beyond 14 days 7 9 10 to be disposed of then 54c done foreign do the next thing dispose is not to reject dispose of means you make a decision and then end it dispose is to end it so guys if you remember 54a you have to appoint this fellow which fellow inside the professional what is his duty what will he do immediately after approval by FC under 54a what is approval approval to appoint how many percentage 66 percent of not voting share non-related party FC see it's a very very different year 66 percent of non-related party FC if everybody is a related party then non-related party OC sorry if everybody's relate party Act is silent we'll see later they'll come out with some guideline IEP insolvency professional will give a report under form number in form number p8 and he should check the base resolution plan the base resolution plan should actually confirm conform means frm not firm confirm means it should follow all the provisions of 54k which is 11 1054 K we'll see and his fee superb is fee will be part of the bpirp cost if the application is admitted you see your ppirp cost only fees payable to any person acting as resolution professional that fee payable if the application is admitted directly it will part of P part of the ppirp cost what if nclt rejects the application first I'll put dive then give all the Declaration one more dive then I'll go to nclt big dive right the small dive is all the your gods in your house then go to Temple in CLT big dive there they say get out gone rejected then what to do if not admitted or corporated or only best party fails to go to Temple it will be borne by the corporate data from a separate bank account so guys the moment is ppirp happens you should open a separate bank account for all the expenses income whatever that goes into it goes into ppirp from that account you should give anyway plus you should take a consent from him in form number P1 regulation 7 eligibility Norms remember he should be independent director all the provisions are 149 should come same Provisions no change eligibility Norms are similar to IRP slash RP under cir should not be working in a legal firm or a auditor firm legal firm if the amount transaction is 55 percent the turnover remember so yesterday's you don't out of syllabus things don't discuss yesterday yesterday's today is today the duties of this fellow will cease duties of IRP will cease or this IP when CD fails to file the application within 90 days I told you within 90 days you have to make an application 90 days from each day declaration or nclt accepts the application nclt rejects have you do whatever you want I don't care because the nclt accepts the application who will be appointed RP remember in IBC you have a IRP IRP will go till the COC and then the COC will appoint an RP under pprp COC only is not there first only I put a dive to possible potential COC or non-related party they have already approved the insology professional so the Insurgency professional will end which day the day nclt accepts nclt Rejects or if you fail to make an application basically he will definitely the duty will end when anything next happens next what happens nclt accepts nclt rejects orange or CD doesn't even go reach the temple this is with respect to the insolvency professional 54b 54a all that dive 54 B what is the duty of the IP now 54c is the continuation of 54a this is the IP part now the other part 54c what happens to that application what will I do 54c is the application of ppirp 54 1 and 54 2 form number one this is where I have to apply guys form number one nclt this is Rule Number Four of insolvency and bankruptcy ppirp rules given by MCA not given by ibbi ibbi gives regulation previously when I told regulation 16 regulation 18 that is Again by BBI these rules are given by MCA government gives the rules regulator gives regulation foreign form number one done next filing what filing guys first what all will I file first one approval of creators first day second day first dive appointment of IP second dive initiation of epirp both require what approval 66 percent of non-related party FC correct remember in 54 am then next I already showed you consent of insolvency professional and the report of insology profession in the previous section 54b yes or no third facial resolution we saw fourth I will give a declaration that I have not done any fraudulent preference yesterday we discussed no undervalued transaction giving somebody preference one year before CR that all that I have not done avoidance of transactions online tips are you understanding it's all procedure tiller but you need to remember all this if you read the bear act you'll die I've made this easier for you yes or no are you able to understand yeah so declaration with respect to avoidance of transactions then books of accounts when last two Financial years last two Financial years audited then provisional financial statements in The Current financial year which is updated up to 14 days before the application the application is May 20th August 14 days before at least still 6th August it should be updated bear act if you read nothing will be there it's all in the regulations it's a mix and match completely structured last Financial years audited provisional Current financial up to 14 days before application you have to do then if there are any what do you say 216 a a Consortium sorry 21 6 Consortium or Syndicate that will not be there for msme but your other fellows will be there no 6A 6ab 6ac 6ab also only their homeowners but there may be debentures there may be deposits there may be other small loans there may be executors administrators Guardians and there will be other people under 24 subsection 5 that we discussed other Financial craters if I want I can appoint an authorized representative and also I will file a declaration that the corporate data is eligible under 29 capital a even if you are a related party if you are not a willful defaulter you can definitely come under this section 240 capital a done these are all the filing things you need to file all these things next date of application when will you apply within 90 days of Declaration whenever you apply within 14 days they will either admit or they will reject same dialogue if they admit what happens commencement of ppirp they reject before rejecting they will give a notice to corporate data who gets to rectify the defect rectified application can be admitted or it can be rejected same dialogue then I linked it with one more section 77 capital a what if you give some false information here false declaration so that is one more link that I've done in this chart 77 capital a if the corporate data or person authorized by corporate data gives false information omits a material fact knowingly or willfully his false information or omits a material fact knowingly or willfully she or deadly three years to five years imprisonment or fine one lakh to one crore or both yes it is a compoundable offense but still deadly three years imprisonment minimum three years minimum three up to five fine minimum one lakh up to one crore or both so this is the important section of foreign C 54 C so generally when they admit the application when you commence the ppirp then what happens guys then you need to see whether the entire plan is okay whether the base resolution plan can be worked or do I need to call other resolution applicants who are ready to take over the what is a msme under ppirp so the data Still Remains in position that's the best part sir if other resolution applicants can come I can go to carp also no yeah you can but there what is the problem creditar will take possession here data only will be in remaining position he will coordinate with the new people that's the wonderful part this entire process should get over not in 180 days 120 days and whether it's the base resolution plan or if it is some other resolution plan everything should be submitted within 90 days from the commencement of PP IRP submission of the plan 90 days completion of the entire thing 120 days after 120 days if things don't work out liquidation or you can ask one more question if it doesn't work out can I go to cirp one more one more you know this doctor has told you will never leave can I take one more opinion can I go to carp we will see that so before that what will I give the base resolution plan now for that information memorandum will be given and within two days all that claims Etc will be computed within seven days from the information memorandum from the COC COC will come here also but after the commencement of ppirp same provision within seven days from the first COC from the first COC meeting from the first COC meeting so commencement of bprp 90-day submit resolution plan 120 days complete the entire thing once you commence ppirp within two days all those things should happen informational random collection of claims and within seven days of information memorandum COC seven days from COC first COC meeting you should always give a base resolution plan later the COC will see okay this is okay not okay let's see foreign will remain in position he knows his stuff he'll be running the show no need to call RP RP will only be in a supervisory role so it's a combination of that data Rose in possession and who's controlling the business RP will oversee everything supervisory role let's check and then I can call other resolution applicants also then we will discuss I will be present very much there because it's my baby and then I will give it off to somebody right with my consent of course with the Creator should agree different concept guys next same thing is given here only nclt when they admit the application commencement of ppirp should happen within 120 days the entire thing and 90 days the resolution professional shall submit the resolution approved resolution plan resolution professional shall submit the approved resolution plan [Music] approved resolution plan COC has to approve under 54k so the COC has to approve under 54k again what approval guys same 66 percent of value what they can approve they can either approve the base resolution plan by the corporate data under 54k4 or they can approve any other resolution plan given by other resolution applicants under 54 K12 if they don't like the resolution plan submitted by corporate data this is the simple desktop 54d foreign resolution plan COC 84k and then other plans if COC does not approve the resolution plan at all and the resolution professional will go to nclt and request for termination of ppirp no problem Alicia hope you could copy down termination of ppirp [Music] so it's D 54 ABCD done e 54 e moratorium and Public Announcement nclt from the ppirp commencement date will declare moratorium best part section 14. Sunday breakfast mutandis no change nclt correct disciplinary proceedings are pending against insolvency profession in the application same guys if it is a no the insology professional to be appointed as the IRP same fellow inside professional will be opponent as the RP if it is a yes then same ibbi will go to ibbi and ibbi will appoint RP they will send send a recommendation to the nclt and as per ibbs recommendation nclt will appoint same you remember that same procedure so this is very simple moratorium first is moratorium secondary display using third one Public Announcement by resolution professional regulation 19. two days from the ppirp commencement date I will announce in form number P9 every creditor listed in form number P2 so in your application form I have to give all these creators list and all that that and to the information utility and it will be published in the website of ibbi also and corporate data the beauty is before in other laws first I will admit and then the other process starts here I have already spoken to all those people then there announce correct denials that's the thing it's all procedure only guys so people only will consider it on this and go don't ignore other things other things are also very important which you have already done duties and powers of RP duties and powers of RP 54 f combined with 54 FN 54 G it's a combined reading if you start reading the ballot again you will get confused stick to this corporate data within two days of commencement of ppirp has to give the resolution professional what a list of claims Securities guarantees everything in form number P10 and also give What preliminary information memorandum I showed you information memorandum all the stuff of the company what why it's going down how can it be revived everything should be given in form number P10 RP again to confirm this list in remember in IBC when I come in then I ask for the claims here claims already list given best part inform credit this is the duties of PRP again separate four mark five Mark what are the duties of the RP first is corporator will give him the list what he has to do confirm the list second inform the creators about the claim saying that sir I've already given these are the claims I am not asking you these are the claims tell me whether it's yes or no credit us to send objections within seven days and then I need to see how to do it within objections and I have to figure out and again re-admit them or reject them whatever same if there is a debt in foreign currency by by Chance the exchange rate as on the pprp commencement date will apply this can all be McQ questions exchange rate on which date will apply ppirp commencement date the claims even though two days three days there's a lot of variation in the market I don't care date of pp IRP commencement date is as per the law that will be taken as the exchange date if you win win if you lose you lose I can't help it after checking all this adding subtracting updated list of claims I will give in form number P10 and mind you guys no taking over management only monitoring the management of the company monitoring management of the company then he will constitute the COC convene the meeting of coc attend the meeting of coc he may convene on its own but if 33 percent voting share demand the meeting he shall convene it is in regulation 27. if 33 voting share demanded yes boss I need a meeting today then you shall convene the COC meeting inform the COC if the board of directors or Partners contravene the chapter so this is like a monitoring your class monitor was there known irritating fellow in school if you open your mouth used to write your name that fellow this RP is that fell only correct so is your class monitor teacher spect loss monitor bucket in Canada they call S right so that is monitoring the management so it's like that anything that you don't do will go and complain to COC then also file application for avoidance of transactions that undervalued transactions preferential transactions these are all the duties when the powers see they can ask you duties if they ask you duties it is 50 for this see guys section numbers and all you leave just remember these points in this regulation number also you leave amendments will not expect you to remember all this in depth you just need to write the points regulation number leave it section number leave it you can simply say as for the provisions of IBC enough what are the power powers of this fellow access the books of accounts access the financial information of the information utility the books of accounts and documents whether it is with any statutory Authority even with statutory Auditors or with any accountants in the msme I can access full access my indoor cannot access the documentation of the auditor I'm not talking about working papers I'm talking about books of accounts and all documents which are actually lying with the statist accountants and all those things attend the meeting also of all the meetings what meetings you can attend guys if you are a corporate attorney LLP you can attend the partners meeting his Uninvited Guest first guest no choice or if it's a company meeting he can attend a gme GM he can attend board meetings he can attend audit committee risk management committee all committee meetings you can attend no problem next he can himself appoint accountants legal professionals and other professionals also he can collect information from everybody as regards avoidance of transactions remember avoidance of transaction the relevant period was what one year before for non-related party two years before for related party like that you can collect all the document transactions yesterday I told you new value no new value all that we discussed then he can collect the business operations Financial payments operational payments made two years two previous Financial years from the bpirp commencement date show me all the transactions that you have done everything business transactions financial transaction operational payments and list of all assets and liabilities as on ppirp date foreign s and get all the details all the records it will be given to him Personnel will give all assistance mutated section 19 all assistance shall be given to him he's like the boss this is 54 F Beauties and Power Soccer resolution professional it's very easy if you have written it down when pointers like this just stick to these charts guys nothing else is needed do not waste time some four or five marks it may come don't waste time reading the bear act and all I've already done that for you this much is enough if they ask you duties 54 F they ask you Powers 54 F3 F2 is duties Powers is F3 this is as for the bear Act and the regulations here and there consolidated claims part already discussed before claims that same thing you will ask for the claims and submit the revised claims and all that G2 if a person has suffered a loss a person who has suffered the loss because of this you know companies you know bad operational problems he can move the code and if there's any breach of contract he can move the code to see compensation for loss or damages why because of omission of material information or inclusion of misleading information any of the documentation then who is liable 54 G2 talks about liability so if you see 54 G2 it squarely talks about the liability who is liable if there is any misleading information in the documentation arising out of the beach of contract where the person has sustained any loss as a consequence of omission of material inclusion in the list of claims or in the preliminary information memorandum no memorandum only have not given details of many contracts details of breaches not given the list of claims have omitted my my name your omitted certain material information was needed for the benefit of everybody I come to know I can show you who is liable guys promoter slash director slash partner and person authorized will full default directly will fully and knowingly if you do under 77a already discussed three years to five years one lakh to one crore both and 54 G2 damages foreign [Applause] [Music] [Music] spot 54f 54 G2 h very simple management of the Affairs will continue to rest in the board of directors or Partners definitely different from IBC continue to West with whom board of directors or Partners you should protect and preserve the value of property always he shall exercise all the contractual or statutory rights and obligations msme will run as per msme his fellow will not put his hand everywhere who harpy this is definitely different from what we have read That's all three points very simple management office will continue to rest in the board of Partners the msme should work towards protecting and preserving the value of property and so will the RP and RP shall exercise all the contractual and Society rights and obligation and ensure that msme also follows the same I section 21 full COC mutatis mutandis is 54 I but certain changes certain changes first change when you do ppirp when it is commencing within seven days of PPI RPA should constitute a COC and interesting to know in seven days claims Etc will keep on changing right so the COC also will change based on the updates today new fellow will add tomorrow new fellow Will comments I also have a claim the company has some uh you know 142 creditors I have only details of 70 people now others are still filing the claims but I cannot wait only 120 days so I can start off the COC keep on changing every meeting as new additions come yes what happens to the Past decisions taken new fellow comes and says past decisions are invalid no where were you when you had already announced here you should have come so past decisions will not be affected in iabc generally the COC is formed after almost 30 days of commencement here it is seven days that's why they are saying it will change based on the updates and within here also seven here also seven there it is within 30 days roughly and then seven days for COC meeting you already Seven and Seven first meeting of coc this you have already seen if the corporate data has no FC who's a non-related party or financial debt only is not there then operational creditor non-related party will form COC tell me in IDC if there is no FC who will be the COC operation craters but who 18 operational craters by value highest then one represented by workman unrepresented by employees here you see instead of 18 we have 10. 10 largest operational craters by value one representative of the Workman and one representative of the employees now the corporate data has only one Creator in a class and no Financial craters other Financial creditors are not there means only one class is there guys that is only deposit holders or only other Financial craters then the COC will be formed by the authorized representative of that class means it has only 21 6A 21 6ab 21 6ac those craters or 24 subsection 5 craters then COC will be formed by authorized representative of that class authorized representative will be chosen just like IBC one note of three home buyers remember tree or P shall be given they'll choose one note of three how by the highest number of craters in that class as per the regulation highest number of craters in that class this is with respect to 54 I which are all the changes J is a small section general rule management of Affairs is vested with the corporate data general rule 54h but specific rule is given in 54 J if the Affairs of the corporate data are handled in a fraudulent manner that main msme owner only is on fraud and has resulted in Gross mismanagement of Affairs during the course I come to know that there is some golmaal going on this fellow is not what he seems like he's telling that I'll do everything for msme but seeing him it feels like he just wants to make a quick buck and run away COC will know that this is happening what will they do COC with a 66 percent of voting share will vest the management to the RP IBC Provisions will come here they will make an application to nclt in form number p14 and the nclt will either accept it or reject it reject what accept or reject what whether the resting is correct or not but the grounds of vesting should be these two Affairs of corporated are handled in a fraudulent manner Cross mismanagement of the Affairs we have already explained the meaning of cross negligence cross mismanagement in 202 per se negligence per se and gross negligence all that is over foreign commencement of ppirp within two days corporate data to send the send RP what base resolution plan that RP will then send it to COC COC will discuss if the base resolution plan or if any new resolution plan is given complies with full provisions of section 30 mutatis meta index section 30 is what guys it provides for payment of the resolution cost second it provides for financial credit payment operation Creator payment and then Sr steel decision higher off the liquidation value and the resolution value and also if you arrange that resolution value in the liquidation waterfall mechanism whatever you would have got there at least that you need to match same COC will discuss and they will also give you an opportunity to change the base resolution plan this is more about discussion and then you know setting it right than anything else final approval will be given under 54 K4 and if it is not there guys then I will invite new prospective resolution applicants first preference will be given to base resolution plan first only within two days only corporate data will send it to base resolution plan and within seven days what happens guys within seven days of pprp COC will be formed now so then I will immediately send it to COC they will discuss they'll say sir please change do some extra Masala you add and give me once you take the opportunity yes final approval will be done but again you see taking Satish Kumar Gupta that versus Sr steel case law the base resolution plan does not impair the claims owed to operational creditor means you cannot create a resolution plan only to favor the financial crater you should also help the operational creator good point if the base resolution plan does not impair claims or to operational creator then I can give a final approval otherwise I am going to invite prospective resolution applicants in form P11 within 21 days from the commencement of the ppir they shall fulfill all the criteria laid down in all the regulations act approved by COC and they shall also prepare the information memorandum and the resolution applicants also should not be ineligible as per 29 capital a this is not an amendment this is a separate Act right where is this amendment right crazy it is this is first point second RP to check all the resolution plans and confirm that it confirms this confirm approves that it confirms means it follows all provisions of 30 subsection 1 and 2 that is criteria or priority as per Sr Steel compare base resolution plan with other resolution plans with respect to feasibility and viability manner of distribution of assets order of priority of debts security interest everything if COC feels that debts owed by corporate data are impaired in a resolution plan they can ask for Provisions for dilution of shareholding voting or control rights in the resolution plan they'll say corporate data you are now giving me the money back I agree but you are giving less money first of all you are giving me less you also have to take something less right what issue shares you own so many shares promoter you own so many shares why don't you transfer some shares to me so I can ask for what guys dilution in the shareholding voting or control in the resolution plan I can say contract of remission I was supposed to receive one crore you have just given me 60 lakhs in the plan 40 lakhs why should I say no why should I agree I believe in your company give me 10 percent stake promoted you on 40 make it 30 percent can I add like that yes it's all for the benefit of Revival if dilution Provisions is not inserted also and still they are fighting then COC to record the reasons if they are okay with it this fellow says no way sir I will not give you the management it is my baby okay if you want 10 lakhs x trial give or maximum this only I can give you know that I will do well you know that I am going to you know recover and pay you everything you know business will be sound you know that I'll give you a lot of business but please don't ask ownership if that be the case of COC or Greece they can record reasons and then that final approval final approval is what guys 66 percent of voting share same they will file it with the nclt finally sir this we have approved the base resolution plan and guys one more thing other pointers the base resolution plan can be submitted by the corporate data either individually or you can do it jointly with others also means you can talk to one more msme and J they will commend to the needful impairment means what if RP does not provide for deadly full payment of confirmed claims then it is deemed to be impaired that is one more change guys no haircut here what payment full payment if there is a haircut then dilution of control boss one crore full pay 60 lakh means give me share Capital give me share that's what they're saying but this is the feeling of this COC they feel it's impairing what is impairing full payment if it doesn't provide so guys voting share nclt if there is no approval or COC approves to terminate what is that first is no approval well not approved only or they actually approve to terminate means what no approval means what they will not get 66 percent voting voting majority CC COC to approve to terminate means 70 will say this ppar pays on nonsense let us end it no approval means 66 percent also they don't get COC approval to terminate means what more than 66 percent of Proto cancel the ppirp then RP will give to the nclt for the termination of ppir will termination of pprp result in liquidation or will termination of pprp go to Circ what do you think sir I don't know first it is leading to my termination already dead correct yes that's how it is guys no choice finish it off and we'll take a break over till K over 11 op let me know finally guys approval of resolution plan COC will approve nclt in GOC approval and she ultimate in 30 days and I'd give it to nclt in which what is L what is C God only inertia but gives to nclt within 30 days nclt will approve when will they are pro guys if they are okay with the effective implementation second with confirms with the section 30 and 31. and within seven days in regulation 49 within seven days I am going to intimate each Clement and I will give a formula for repayment there will be a formula in this and I will intimate each Clement means whoever is claimed let's say sir we have a great sir congratulations the formula for repayment will be given now if 1 and 2 are not followed means what if it does not conform to 30 and 31 and if the effective implementation is not done properly according to the nclt then nclt within 30 days can disapprove or reject the resolution plan and pass an order under 54 n for what termination of the tpirp termination of ppirp special point if COC 154 J2 has applied to nclt for wasting of management with the RB remember that wasting of management to the RB because of what fraudulent Affairs or grass gross mismanagement and nclt had approved that particular thing the time which means before this order and all came first only had approved what shifting of the entire management to RP then now the the RP has been approved by the same COC and because of collusion correct because of collusion what is happening this entire resolution plan is such that first of all I'd applied that where see what I'll explain in the base resolution plan the management had given that we will do one two three four five fine during the course of the entire proceedings RP loads the component to COC saying that sir I am monitoring everything but these fellows are doing golmaal guarantee 100 golmaal they are doing sir so in that case please change the Management in a sense let me come and take over so COC has already approved I go to nclt and CLT also has approved which means now I take over the management now I am taking over the management but who is giving the base resolution plan still that fraudulent company fraudulent promoters in the base resolution plan I have come to know that management and promoter is not changing only same pillow is continuing how does it matter now guys superb same fellow is continuing and then it may result in collusion they'll come to RP also and say bro I know you are taken over but I am you you are me how much money you want let's collude right you leave it you ensure that this is passed you go to that uh crater you tell them the same will do something to prevent this guys we have one more section see before that if nothing happens if everything is smooth they will either approve it or reject it if they reject it whatever what will they reject they will terminate the ppirping but in this case if it results in any collusion check it out if it results in a collusion they come to know that this is collusion hand in hand all of them are coming together to actually cheat the corporate data only that's the best part some promoters are cheating the other directors and people who invested the con so nclt under a different section they can reject the resolution plan or terminate the ppirp these two are already there before also in any ppirp they can terminate it or they can reject it it's okay but three additional things two additional things they can now pass a liquidation order Direct and the ppirp cost to be part of the liquidation cost liquidation order can be passed only and only when I have already applied to the nclt and they have approved for changing in the management has changed during ppirp but superbly in the base resolution plan no management is changing they are only continuing and it appears that there is collusion nclt Fields its collusion so I'll say liquidation there is no point in going ahead liquidation direct depth you are misusing the provisions of ppirp to further your personal gain I am Gonna Cancel right now got it guys this is the last nail in the coffin otherwise what can nclt do only terminate the ppir in this case the RP has you know approached the same you know I mean approved by the same COC and it does not change the management or promoter at all so the resolution professional has given the resolution plan the resolution plan is approved by the same COC it does not even change the management promoter Etc this is full collusion between few creditors and management and resolution professional so ncltices what is this nonsense do you think I'm a fool this msme is to revive honest msme promoters what you are doing is outright cheating so what do I do liquidation order foreign is the last part termination of ppirp roots of termination same revision where COC does not approve the resolution plan meeting happens but no approval that is one part of termination 54 D3 where COC does not approve within 90 days means what inaction by COC they don't approve only third one COC by a 66 percent voting resolves to terminate the bpirp that is after commencement of pprp and before approval of resolution plan where COC does not approve meeting happens but no approval second one they do not approve with the 90 days in action indifference third one by 66 percent majority by voting share resolves to terminate the entire ppirp process RP to apply to nclt in form number p13 dared they will terminate the ppirp as you have already seen all these things is a quick revision but these Provisions will continue avoidance of transaction fraudulent trading fraudulent management during pprp these proceedings I can sue them for avoidance of transactions I can sue them for fraudulent trading I can sue them for foreign trading during ppirp that will not take away just because I have terminated the pprp doesn't mean I can take away avoidance of transaction provisions if CD is already seen if corporate data is in a fraudulent manner gross mismanagement nclt will also liquidate will also liquidate liquidation also can happen these are the three modes of termination three modes of termination one where COC does not approve second COC does not approve within 90 days in action third one by 66 percent resolution they decide to terminate positive action after commencement of ppirp approval of resolution plan COC with a 66 percent voting share after the commencement of ppirp or before the approval of resolution plan the COC through a 66 percent voting share if they feel like going to cirp they can do so so guys COC has two options one either go to cirp or approve the plan reject the plan don't do anything terminate the ppirp but if any fraud happens Direct Liquidation order RP to intimate the nclt within 30 days and they will do what they will terminate the ppirp resolution professional under pprp will now be the interim resolution professional under car this is transfer of ppirp to cirp what is the effect order of transfer is order of admission of application under Section 7. means if I say if I pass an order to transfer ppirp to carp that is the order of admission the moment you admit what happens 180 Plus 90. cirp will commence from that date for all the proceedings shall continue this will also add now 43 preferential transactions 46 relevant time extortionate great transactions the ppirp date will be the insolvency commencement date for these three sections for 43 46 and 50 bpirp date will be the insolvency commencement date papyrp period is also included in the relevant time only for this for other cases order of transfer from ppirp to cirp will be the insolvency commencement date only for 43 46.50 BP IRP date will be the insolvency commencement date so this successfully we have completed bpir it's a separate Act only that's why I didn't do it yesterday if I had done it yesterday IBC pprp would have created one own thing PPI or IBC IRP right so this is the thing it ends the matter we shall take a break now okay so let's begin why is this sebi and all this Chiller only but little bit we'll do all this we'll finish off quickly it's all very easy law yes Savvy board they'll ask this question for what do you say mcqs and all that when will the chairman die how long can he live all those things 65 years term five years termination these things don't ignore because it is important Savvy board who can this you will never ever study in your entire life you'll never apply practically also you will not go to sepia and say tell me the chairman how old is he but in the exam they'll ask you unfortunately chairman two from the union Ministry one from RBI five from the union government and all these things of this three year old time members hold time members maximum 65 years of age are interesting to know part-time members no restriction removal of members these four things insolvent unsound mind moral turpitude or a fish like this on KD fellow who has abused his position in the market and of course in public interest you can throw him out as far as resignation is concerned or three months notice should be given notice of three months that's how it is powers and functions of the board 11 to a in all these things if it is inside a trading fraudulent or unfair Trade Practices the beauty about this 11 11 to 11 4 especially is they can the best practical example is if you have around 19 20 minutes I suggest you watch that video which I released couple of days ago it says all these things are there in that this is because the X as per 11 subsection 4 the sebi can give the instructions or directions as they deem fit that's the dialogue given so in that same thing with yes bank and the Dish TV they have actually suspended the uh what do you say of the uh concerned dmat accounts of all the directors all those powers are there definitely so same thing as it dims with this one instructions as it deems fit and they can uh Levy penalty also also as per the Banning of unregulated deposit schemes act 2019 whatever they want they can definitely do so so generally these questions are what they come in sebi is of course 11 subsection 4 keeps coming what are the powers when an inquiry or an investigation is ordered 11 subsection 4 and also what are the powers of sebi to issue directions that also they have asked in the exam many many times four marks apart from that what are the powers of sebi to C's records these are all more of what do you say theoretical points which you can go through and uh generally if you compare and study seizure of documents everything is 180 plus 180 like that right here it is and if it's investigation you can keep it till the conclusion under uh the respective section here also till the conclusion seizure of documents is still the conclusion Collective investment schemes registrations are all pure Theory cannot waste time in discussing all these things now uh penalty Provisions have given it because penalty is there how you study God only knows if you remember that I don't know so that is something which I have never understood how to remember penalties and it doesn't make sense honestly but anyway procedure for adjudication uh yeah and if you see appellate Provisions again what is the entire at least you should know what is the uh adjudicating mechanism here under CB so basically first any person agreed by the order of uh sebi Savi order or assessing officers order or anybody irda pension fund regulatory Authority can go again your seats 45 45 it's not 45 15 like IBC or 30 15. 45 days they can go to sat Securities affiliate terminal so actually Dish TV has gone to sit you know against the order of the assessing officer in that particular case 45 days and more than 45 days uh sufficient because it can be uh you know put forward then if you are agreed by the order of sat Securities apply terminal then again they should dispose of it as soon as possible otherwise they'll pass an order either confirming it modifying it or setting it aside again order to the Supreme Court is within 60 days so this is the entire mechanism and term again we have already discussed semi board maximum 65 years three years at a time can be reappointed by CG whereas security is appellate tribunal that also they'll ask you should not get confused here it is 70 years 70 years two terms of five years each so the term of the sebi board chairman Etc 65 years three years at a time whereas Securities appellate tribunal 70 years two terms of five years each It Is reappointed by respective parties then they have asked many many times who are the people who are comp who are there in the Securities appellate tribunal one will be a presiding officer who would be a judge of the high court for seven years or the Supreme Court or the Chief Justice of the high court also can sit there who has been rather judicial members will be a judge who has experienced as a judge in a high court for five years technical members technical members will be a secretary or additional secretary who would obviously be a part of the ministry or the CG of the state government and other persons who have 15 years experience in Securities Market Pension funds commodity derivatives Insurance Etc so one thing that we need to keep in mind is this is who are the uh people who are there in sat so to confuse us what they asked was who are the people who will select the technical members that also they asked but that is a separate search Come selection committee this also was a four mark question these are all merely theoretical this is more of what you say remembering or this uh book is more than sufficient to you know browse through all these important areas selection committee also is there selection committee will uh what you say select the technical members so who are they chairperson presiding officer of sat this guy presiding officer will be part of the selection committee then any member and who is this member secretary Department of Home Affairs Security Department of financial affairs secretary Department of legal Affairs these are the members also will be part of that entire committee who will be selecting what the technical members this is again a noteworthy thing and of course insider trading is no Insider shall indulge in any insider trading insider trading keywords are upsi unpublished price sensitive information any connected person or even deemed connected person like say if I am doing a due diligence of a company and I come to know certain unpublished by sensitive information can I pass it on to my friend and that friend will pass it on to one more friend and that friend to another friend who happens to be a stock broker who will now act on that information and trade and make again no so all these things would be banned directly dealing in security or even counseling communicating or procuring information all these things are banned they are really dangerous Provisions that is with respect to insider trading sebi LOD are also guarantee questions they'll ask you so these whatever I have given you just checked it out is very very simple Beyond this cannot simplify further minimum number of directors on the board that is uh normal companies you know these are sebi listed companies six directors must be there top thousand listed companies and top 2000 listed companies should have minimum six directors we never saw this anywhere in companies act your minimum six directors we saw only two and three in companies act here it is six for what listed companies gender diversity we already know that one independent woman director we have seen this already then approval for non-executive director was attained the age of 75 years so one more special resolution is needed for listed entity correct this is for non-executive director not MD don't get confused MD is that schedule 5 that's different that is MD more than 70 here it is non-executive director different Quorum for the board again we have seen already that is one third of total strength or two was there no here it is what three for how many top 2000 listed companies from with effect from first April 2020 of which one shall be at least one independent director that's what it is then apart from that remuneration payable to a single non-executive director annual remuneration payable to a single non-executed exceeds 50 percent of the total remuneration again you have to take a special resolution the overall domination is around 10 crores in which six crores only one fellow is withdrawing so obviously for that especially you have to take special resolution these are lodr that is not for normal companies act but for listed entities is what they say apart from that maximum number of directorship this is also this can be asked in mcqs what is this a person can be a person how many companies you already seen right 20 of which 10 will be public apart from that Guys these things person shall not be a directory in more than eight listed companies with effect from first April 2019 this is within that 10. and 7 listed entities with effect from 1st April 2020. these are all McQ questions that they can ask you a person shall not serve as an independent director in more than seven listed entities any person who is serving as whole time director or MD in any listed entity Shall Serve as an independent directory not more than pre-listed entity if you are a professional independent director maximum number of companies seven listed companies normal directorship maximum eight listed entities from one April 1st April 2019 but now from 2020 as of today in 2022 it is seven listed entities entity Shall Serve as a independent directory not more than three listed entities is what they say apart from that there are other things also Declaration of Independence number of memberships in the committee also a director shall not be a member in more than 10 committees there is audit committee stakeholder relationship committee right so many committees are there in that nomination domination committee maximum you can be in only 10 companies across all listed entities across all listed entities or act as a chairperson of more than five these are all purely memory you have to remember this no choice unfortunately then all the other things are fine quarterly compliances you can just stick to the Chart guys you can go through the chart each of this can be asked in the exam when will you file what within how many days no need to study anything else just stick to this more than sufficient Financial results when you should go what is recorded dividend when website updation when you should give everything so these are all the directly it is given nothing for me to actually uh you know explain here apart from that one more important question is page number 233 various committees various committees as per companies Act is different various committees as per lodr is different so I have given the difference between audit committee with respect to lodr and 177. so we know all listed committee has two hours man over yes minimum number of directors here pre-entry both same minimum independent directors here it is majority here it is two third financial literacy must be there chairperson chairperson has to be financially literate in case of 177 but in case of lodr it is uh you know chairperson shall be independent director has to be present at the AGM these are some of the other criteria you can go through it is in a tabular format and this is a summary of all three committees audit committee nomination remuneration committee for committees that is a stakeholder relationship committee and risk management committee applicable to top 500 companies this entire elodia regulations will hundred percent come it is in mcqs especially they ask so it is solid you can get four or five marks from these things only just stick to this uh you have to keep on revising here and there and one day before the exam also just stick to this material more than sufficient so next is uh FEMA in FEMA again we'll have to see only the I mean whatever is possible and especially only the ones which are slightly tricky now most important if you have a cursory glance of the past 20 25 30 papers almost 70 percent of the questions either come in residential status or they come in current account transaction capital account transaction little bit of export of services repatriation that's it yeah other things will compress of ECB and other areas thirty percent of the time it comes only for four marks correct sometimes five to six marks but predominantly four marks right but in that of course we need to understand the definition of the resident in India so who's a resident in India three things that we have to keep in mind Point number one period of stay in the previous Financial year Point number two purpose of Stay in The Current financial that's all period of stay in the previous Financial year purpose of Stay in The Current financial year so there are only divided into three parts if you see the definition it's more tricky it's have you know made it easier these three people are residents these three people are residents one all Indian citizens who stayed in India for more than 182 days when in the previous Financial year previous Financial always should be seen from the prism of what period of stay last year how long did you stay for stayed for how long more than 182 days Current financial year was never gone abroad in The Current financial year so all CA articles all of us are what Indian citizens State in India for more than 180 days I assume covet was not there in the current year not gone because you're preparing for the exam so we are what obviously resident now next year let's say we have cleared CA so we have cleared CA now if I look back the previous year when I was studying for CA obviously I was staying in India for what more than 180 182 days now in the current year I'm already a CA now I can go out for a trip right or I can go out where I can go on business or I can probably I get a job abroad so what am I now is what we need to see so if you see who went abroad in The Current financial year for other than the three purposes we will be a resident other than the three purposes means he should not have gone the other you should not go for business if you go for business you are not a resident second you should not go for employment if you go for employment what will happen not arrested and mind you guys it's or any person who stayed in India for example uh when the previous Financial year right and current financially are going abroad for what employment third one some other purpose where the period of stays indefinite medical treatment Etc in all these cases now let's say if you go abroad for a trip or your resident or non-resident president because you are going outside for other than the three purposes what if you go to study you are going out to study so this year let's very simple this year in the previous Financial year when I was doing CA I did I stay for more than 180 days yes current year I am going abroad to study is it other than the three purposes yes other than the three purposes yes so what is it are you resident or non-resident president this is the exception that I was talking about 100 you're a resident but you see your exception this is important this they can ask imported exception residential status as per ICA and RBI circular second point a person residing in India who goes outside India for studies after CA if you still want to study assume and you want to go abroad in that case you will be considered as a special status will be given person resident outside India correct you are like waste because your study studied already CA you are going out non-resident no but logic you know why because outside it is very very expensive for us to go most of the people who go abroad to study eventually work there unless I eventually work they'll do some part-time job so most of my friends also had when they had shifted there they were stewards in a proper you know Cafe they were Baristas it is it is there it's there's all Dignity of Labor is there so they will work they have to work they cannot it's very high standard of living is very high so they are the government thought that boss if you are going abroad you are saying that you are going to study but actually you are working also which means it will be deemed to be what you have gone for other than the three purposes you're going for government that's why the year you go only should be treated as what person resident outside India this is a big exception so first you have to write this by the way first you have to write this and first you have to say is a resident however then you should write this second point should write the second point so a person residing in India who goes outside India for studies will be considered as person resident outside India it's a old circular 2003. so if these two cases are tested in the exam the first case we still have to do please write the original provision and then explain the exception as given above so they will be treated as president outside India anyway from forget about this year next year if you have gone to study also the next year one full year or outside India next year what is your status obviously non-agent because the previous year you never stayed for more than 180 today so residential status keeps changing now if you have gone abroad for employment only assume you are a person resident outside India once you join there there you cannot eat that food correct so you bring ask your parents to come so then in that case your parents will come for one or two months whatever it is like on a tourist visa they come for a month now what about your parents are they resident or non-resident president they are obviously resident so that's what they say here very simple third one all NRI and foreigners third one is defend all NRI and foreigners who stayed in India for more than 182 days now this is like an expatriate who comes to India first time ever to work the year he comes to India obviously in the previous year he never stayed for more than 180 days so will it be called as a resident or non-resident non-resident what about the next year the next year he would have stayed in India previous year for more than 180 days and that year he would have come forward for the three purposes business or vocation employment or some other purpose now if a foreigner a Kenyan student comes to India to study the year he comes to study is a non-resident but then the next year he will obviously again be what did he come for for employment no for came for any other purpose so three years he will study here and after eventually he'll get a job in India so on that day he will be called as a resident so but there are you know expatriates who come to India for the first time ever they will be coming to India for the first time ever to take up you know positions here in their Indian companies I mean their Indian subsidiaries and all those things now for that obviously the year you are coming you are a non-resident but exception that is first exception a person who has come to India to take up employment will be considered as actually non-resident why last year did not stay for more than 182 days but it is treated as person resident in India because anyway is coming to uh you know take employment from next year anyways or resident why not make him from this year only that is the idea here these are the two exceptions given in the revised study material earlier it was not like this so if anything like that they ask in the exam please note that you should write these two exceptions that's all about it then what about if you are an air hostess and all those things then you are obviously a British Airways but you come to India and then there is a layover in Bangalore some 10 days or 15 days a month 10 days a month you're here so tenant I mean then 10 15 days like that eventually almost around 180 190 days you're in India so are you a person resident in India so residing means there should be an intention to stay because of your work if you are obviously staying as a layover that is not the meaning of the word staying in India or residing in India is what they say so citizenship is definitely not relevant and if you see there the words decided for more than one and it implies a compulsive stain in that in India will not be considered compulsive stay you are compelled to stay no choice that is not considered the word reside also implies permanency during covet somebody came to see Taj Mahal then covet here you are only stuck for three four months and then eventually it went up he also got covered hospitalized then in that case what to do that's what they're saying compulsive stay is not treated as residing citizenship is not relevant for determining the residential status definition of Resident and non-resident are mutually exclusive either resident or a non-resident definition under FEMA is both based on period of stay in the previous Financial year purpose of staying The Current financial year very very simple one has to remember it as 183 days because it says more than 182 days 182 days one hour all that extra thinking should be avoided under FEMA the residential status of a person can change obviously on a daily basis now if you go abroad to for employment then next day only you came running you went through employment in Malaysia I was meeting a friend recently he told me he went to Malaysia for three years first month only lost 20 kgs he's a proper vegetarian in Malaysia Philippines or in Philippines Philippines what you'll get he said even chips is made of pork Lord that is so he's like I didn't get anything so even rice I was thinking whether it was veg or non veg normal white rice right that's what it is so he was telling that so he was telling his experience then he said I've never entered the kitchen in my life but then there I had to call my mom I didn't didn't even know how turuta looks so then I had to see the picture go to some Market which is some 100 kilometers from where I stayed to get turdal and then he learned cooking and then he started feeding all the Indians there that's what he was telling so all that happened yes all he was telling me when I met yes so if you see these are the two things two important exceptions exception one and exception two done body corporate on the other end you are Incorporated in India but your office branch or agencies in India but is controlled by a person resident outside India other one office branch or agency outside India controlled or owned by a person resident in India so Reliance office in Dubai that would also be called as a resident whereas uh what about Tesla office in India what do you think that is controlled by a person outside India but it's an office branch agency in India will be called as a resident only the Tesla Bangalore office is already there yes then apart from that you have definitions of foreign currency and foreign Securities and all those things this you can all go through guys now the two other things important transactions are called capital account transaction and current account transaction so our life should be as simple as current account transaction definition other than Capital account transaction well it's not so simple our life is like Capital account Transaction what is capital account transaction something that alters the assets and liabilities including contingent liability outside India of a person residing in India so basically it should alter the assets and liabilities outside India of a person residing in India it should either create a asset create a liability outside India outside India so if Kumar Swami random person right Kumar Swami buys let's say vidhan sauda in Bangalore if I Sudan Sada using money from ICICI Bank malleswaram is it creating any asset no so is it is it what is a capital account transaction no on the other hand he wants to buy uh you know Palm Islands one house in Palm Islands so then for that he uses ICICI Bank or SBI let's check SBI SBI will use a loan from SBI what do you think is it creating an asset yes now if he borrows money from Swiss bank and then buys the Palm Island Property it is creating an asset also outside India liability also outside India power person resident in India so that is called as a capital account transaction reverse case Leonardo DiCaprio comes to India he falls in love with malleshwaram every day he comes to CTR Hotel there now he wants to buy a small room next to otherwise because he likes the place what do you think that wishful thinking just example so what so if he's buying what Alters a certain liability in India correct of a person residing outside India so if it creates any asset and liability in India for a person residing outside India that will be called as a capital account transaction current account is other than the three for current account transactions there are three schedules schedule number one completely prohibited schedule number two prior approval of CG because there are two things here two letters CG three letters like that they didn't frame the law easy for us schedule 3 is what RBI prior approval of RBI so these things also they keep asking in the exam whereas this is all capital account transactions Etc so for example in Indian resident Imports Machinery from a vendor in UK for installing in its Factory missionary is a capital expenditure as per accounts and income tax law but under FEMA I'm importing it to the country is it creating an asset in India for the UK vendor no it does not alter anything it does not create any liability also to UK vendor for the Indian importer so hence for the UK person the Indian national UK winner neither owns nor is owed anything to the other in the person in the other country I am just buying the property from outside hence it is a current account transaction but if I import the Machinery on you know credit terms also that is also a current account transaction all these are current account transaction but if I take a loan if I take a ECB to buy a missionary from outside it's creating a liability outside India then only it will be called as a capital account transaction just because I bought a missionary missionaries of capital nature Capital account transaction no you should see the money is it creating an asset or liability outside India for a person resident in India so then prohibited list you all know this very simple lottery winnings income from racing all these things are completely prohibited callback services and all these are prohibited scheduled to approval of central government cultural tours you have to take approval of Ministry of Human Resources Etc and foreign print media if you are if any state government for example if Karnataka Forest department is putting up an advertisement in a foreign media if you allow if you are a private organization if you are putting a advertisement outside India that's Harmony who is RBI to tell how to spend your money but when a state government or a public sector undertaking is actually putting up like for example Karnataka Forest department wants to ensure that many foreigners would come and visit kabini National Park to see the black leopard called Saya so they want to see and many people are coming actually it is earning a lot of foreign exchange by the way it's one of the or very very few places in the whole world where you can obviously get a chance to cite the black leopard black panther so of course in that case if I want to put up a full page advertisement in a foreign media then of course I need to take the approval of Ministry of Finance Department of Economic Affairs like that in fact that many things are there so you know remittance of hiring charges of transponders by TV channels now you have your own satellite so in within your own satellite you can obviously use it now let's say the arnab goswami is speaking and the transponder only bursts Indian satellite assume so obviously then I'll have to hire somebody else's satellite I have to hire USA satellite then obviously money is going outside the country right so that's the reason why I have to take the permission of Ministry of information and broadcasting worst examples but remember yes next schedule 3 prior approval of RBI prior approval of RBM this is again very simple individuals now this again is important up to US dollar two lakh 50 000 per person per Financial year no permission needed each individual can spend up to 2 lakh 50 000 US Dollars no permission this is called what liberalize remittance scheme lrs liberalize remittance scheme you can do whatever you want that no questions asked even if I am exceeding 2 lakh 50 000 also no problem provided I am only using it for these three things immigration immigration means migrating from my country to some other country settling down there correct not going to another country for a trip that is called immigration as a difference immigration and immigration immigration is migrating to shifting to another country so there you need to pay those taxes they said all these 25 years you stayed in India now you are coming here all the benefits of this country will flow to you so please pay that immigration tax now that tax can be one lakh two lakh three lakh so if it goes beyond this 2 lakh fifty thousand US Dollars still I can go ahead if it is immigration no permission needed medical treatment abroad studies abroad in all these cases I can go beyond 2 lakh fifty thousand if the lrs scheme initially only if you adopted for the lrs scheme even if it exceeds no problem but for other reasons if you are using this money then you have to take permission it's for individuals what about companies companies is very simple if the company has given donation Reliance has given a donation to Harvard University for what for creation of a chair or creation of a chair they say that two three seats you reserve for me I will have a selection process in our country I will give examination whoever selects I'll reject and I'll send a new then I'll send another money anyway to Harvard University foreign University though if they will study and come back and work in my company but yeah scholarship schemes are there where there will be examinations and then very simple I am sending you abroad to study in that University you need to come back and work for Reliance for two years here that's a bond sign that's fair enough so if you see yes how much can I give donations if it is up to some limit it's okay but if it's seeds exceeds one percent of the previous three years Forex earnings or US dollar 50 lakh whichever is less only if it is exceeding that amount so I have to compute how much have you brought in the past three years I should see one percent of the dialogue or 50 lakh US dollar whichever is less up to that amount if you are creating a chair no problem but if you exceed that amount you have to take prior or be approved mind you it's not prohibited it's just that is restricted to take RBI approval or if I can fund any education institution or if let's say for example they fund any activity which is the field of activity of the company Reliance does everything anyway so whichever research institution they pay money that will be covered under this thing this is Outlaw of Foreign Exchange from India that's why if it exceeds a certain limit and you take permission next Commission on agents abroad for sale of residential or commercial plots in India so basically there are many many nris there who want to buy land in India want to buy uh you know luxurious apartments in India they take the help of foreign agents only they take the help of foreign agents so commission paid to agents abroad for what sale of residential flights or commercial plots in India itself so I am simply paying commission to them it's a wasteful expenditure US dollars is going from India to abroad to the foreign agents how much I can uh bear up to that basically if it exceeds 25 000 US dollars or five percent of the inward remittance since you are buying the house in India obviously will bring in money also when you bring in money in that five percent I can allow you to send it back so five percent of inward remittance or 25 000 USD whichever is higher again these things are purely based on memory you need to remember them consultancy fee now I am developing lot of airports in India because of the abrogation of article 370 now I want to construct lot of airports in Kashmir you know area so I will hire people Consultants from abroad now I need to pay them the fee for infrastructure and other facilities for if I am developing infrastructure and I hire a foreign consultant who has expertise in what do you say uh you know constructing airports and in high altitude regions so I have to pay him money or I have to pay that entire organization money if it exceeds US dollar one crore per project 1.2 crore 1.3 for that extra money I need to take permission of RBI and for others other than infrastructure project then for example if I want some legal help I take some legal consultancy services that is US dollar 10 lakhs all this is memory waste memory based you need to remember and mind you guys the lrs is applicable for both current account and capital account this was again an RBI circular it's not just for current account it's applicable to both both limits put together 2.5 lakhs then what are the prohibited transactions in the business in the business of chit fund Capital account Capital account transactions also everything is allowed but except a few which are prohibited what are prohibited that also they keep asking in the business of chit fund fund business cheat fund business is what where I need a loan but I will obviously put small amounts of money 10 000 rupees like that so all of us will collect around five six lakhs in that they will lowest bidder will get the full amount and the bid starts at around 65 percent of the value collected so though I just invested 10 000 rupees mine was the lowest bit so I got the entire 10 lakh Rupees in that 10 lakh they will obviously remove the commission and whatever remaining amount they'll give and the remain our 65 percent they'll actually get remaining after the four months commission remaining amount will be distributed to other people who had obviously bought the chits now this is a in India only people you know cheat you know by opening these state fund businesses but imagine if I allow foreigners to do it hence investment or anything creation of chit fund business not possible however non-resident Indians are eligible to subscribe through banking channels they can do so but on a very strict non-repatriation basis means what if they invest in Fund in India they can they cannot take it back to their country and it's only for NRI NRI banking Channel non repatriation basis allowed nidhi company same thing in agricultural or Plantation activity in agricultural Plantation activity this is memories of the past they also came as Traders some people we said please come they need to cover everything that's why bind agriculture or Plantation Real Estate or construction not allowed so they cannot buy any property however there are exceptions to this nris can buy oci can buy overseas citizen of India Pio can buy that is Person of Indian origin they can all buy up to one property sometimes two property joint holding all this is there that is anyway that's another part of it now can I hire a foreign consultancy firm who are experts in development of townships all these things now Reliance is building an entire Township near Mumbai so like that can I hire Outsiders to build can I do a joint development of Township and all that 100 yes so there is no RN password that is that real estate business shall not include development of townships and also I cannot trade in TDR transferable development rights so that also uh because of the zoning area and free zoning area you will get this TDR if anyone is taking over compulsoryly so that TDR also it's a right to own a property since you cannot own a property you cannot even own the right as well is what they say can I invest in uh what do you say Real Estate Investment Trust Reit so Reit will actually invest in other companies and give you a return is that possible yes that is possible clearly given that so these are prohibited transactions some are freely allowed some are freely allowed that is what depreciation of direct investment and amortization of loan so if I have taken a loan and I want to now reschedule the loan restructure the loan that's called amortization that or Reliance invested in some joint venture let's say in Vietnam and uh unfortunately that investment was wasted could not go ahead so what I'm gonna do depreciation of that investment I'm gonna write off that investment now of course I am altering the liability altering the asset I have a joint venture I am altering the asset there is it a problem no problem because these things are freely allowed without any restriction apart from that there are other things if I am a person resident in India as of today I am resident in India but all my life I stayed in the US these are those your friends who say two years I'll go to USA income and the two years will become 30 years so after 30 years they'll come back to their own country at age 65 let's say at that time whatever property they had owned when they were in USA standing today can I sell that property is a question so first of all I was in India then I went abroad I lived there for 30 35 years there I made some property there in the USA then I came back to my country when I came back to my country should I sell everything and come back or should I just come back and I just come back like that and sell it whenever I want and bring money to India or purchase more property all that is there that is this point freely allowed specifically going under Section six four and six five anybody who's resident in India can hold on transfer invest foreign currency foreign security immovable property situated outside India which he had acquired held or inherited when he was outside India so basically your friend till let's say age 25 will be in India and then he goes abroad and stays here till he reaches 65 and here standing at age 65 here you would have made some property right so they are talking about that property this guy can he now hold on transfer invest in this property which he had acquired when he was outside India yes now what about this guy here this guy when he was age 20 had inherited some property from his father and now he's standing here he's in USA now he's in USA at age 35 he's in USA he remembers the property which is there in India which he inherited when he was in India he feels that he will not come back to India at least for the next 20 30 years he wants to dispose it off should I take any approval or I can dispose it off you can dispose it is freely allowed under six four and six five this part this part is this one old fellow is there resident in India who is resident India now can hold own transfer in invest in what foreign currency foreign security immobile property situated outside India which is acquired held or inherited when he was outside India reverse you're a 35 year old guy in USA you are now thinking about the property which you inherited in India when you were in India you want to dispose it off right now can you do it yes next Point resident outside India 35 year old guy you can hold it also just like that no problem he can transfer also sell it off no problem Indian currency Indian security immovable property situated in India which he had acquired held or inherited when he was in India so these are the other points that they can you know us then you can prepare to create back then of course there are certain regulations you can go through where NRI can purchase oci can purchase oci is a person resident outside India who is registered as a overseas citizen of India as a oci card who is a person of Indian origin then person of Indian origin where his lineage his grandfather whoever some of them will be of Indian origin so your Satya Nadella then your Sundar pichai all these people are I mean especially satyana or what is a person of Indian origin whereas Sundar pichai was an Indian citizen but then he obviously became I mean U.S citizen later so all these things are there and uh person of Indian origin also same thing in all these things there are certain regulations can you also have a joint acquisition by the spouse of an NRI or a spouse of an oci so can Nick Jonas and Priyanka Chopra buy a property so all these are these examples only now there are various you know things that are there then of course Import and Export of goods the important thing there would be your repatriation rule so let's just see that actually repatriation rules when will you uh settle the export guidelines and all those things this all you can go through don't uh what do you say tell too much into all this when you don't have time but do not ignore it also these are all important areas when it comes to like three to four marks here and there but if you have not understood if you don't want to study it's okay it's you can take a risk here rather than leaving other things now this again is an important chart realization of export value if I have exported certain goods or services from India within how many days should I get it back is the thing from India it is if it has gone normally Goods exported normally to other places you know B to C segment then nine months or such higher time specified by RBI but extension is given by RBI because of covet we'll see that if it is Goods exported to a warehouse outside India then I can repatriate the proceeds of 15 months 15 months or period specified by RBI but if the goods are going from a special economic zone or export oriented unit or electronic Hardware technology park or a software technology park or a biotechnology Park in these cases again nine months is what they say 15 months is only for what Warehouse however with effect from 1st April 2020 exports up to July 31st 2020 RBI has extended you know from nine months to 15 months because of covet so if you see the dates anywhere till July 2020 in the exam if they give dates like that you also need to write this extension RBI is granted extension dominance 15 months from the date of export and of course you have to give a EDF duplicate and if it is a software a soft text then it is triplicate all these are fine all these things are there apart from that there are certain things this also is a four mark question export of goods or software may be made without Furnishing any declaration so they can ask you this what trade samples and you are sending no declaration needed also if there is any gift less than or equal to 5 lakh rupees no declaration needed no declaration needed if I am sending any aircraft Raphael jet aircraft I am sending for overhauling so for a period of six months again it will come back it will go there get refurbished get serviced and again come back within six months if it is coming so no need of any declaration all these things then one more uh McQ based question would be realization and surrender of Foreign Exchange you go abroad you spend money unspent money is there before how long will you mean within how many how many what time I should give it back to RBI this is the question so basically RBI here means basically the authorized people authorized money changer all these people so if I am getting remuneration for the services rendered then whether it's in India or outside India you should give it back within seven days of the reset but if it is in any other case that is sale proceeds of assets outside India 90 days from the date of receipt 90 days from the rate of reset I should surrender the realized Forex other than individual again if for creation of chairs Etc payment to Consultants abroad Etc if there is any unspent amount the company should surrender it within 60 days from the date of acquisition or purchase if there is any unspent amount and if for example Mukesh Ambani is going abroad and um Reliance is paying for the what do you say everything travel Etc and also giving him some Foreign Exchange in that case if it is foreign notes and foreign I mean any coins are there which are unspent the company has to surrender it within 90 days of Return of Mukesh amban if it is in Travelers check Etc 180 days 180 days two things they can ask you what if Mukesh Ambani himself takes or in exchange when will he give back this is actually company should not get confused that's why I've got an example Reliance acquiring foreign exchange for business travel expenses of Mukesh Ambani that is different from Mukesh Ambani taking foreign exchange right Mukesh Ambani taking foreign exchange is regulation number seven individual resident whether it is currency note or Travelers check it is 180 days correct for Mukesh Ambani it is 180 days even if it's foreign node if it is company taken on behalf of Mukesh amban Reliance has applied for the Forex then it is how much 90 days should not get confused that is a tricky point but there are exceptions no need to surrender under these cases absolutely no need to surrender if obviously authorized person only has money authorized money changer Western Union money transfer has a lot of Foreign Exchange will have to surrender it no they have to keep obviously using that next any person can keep any number of coins absolutely no limit can I have 10 lakh US dollars worth of coins I'm just asking answer is yes you can keep coins of any value no problem and when you go abroad when you meet your auntie you'll obviously put one dive namaskar I will do so that you'll get one cover envelope and here you will get 101 rupees they will get 101 dollars good that's right full figure we have to do so their honorarium gift and settlement of lawful obligation whatever unspend portion of travel I would have taken no in a year I can take 250 000 USD so I am going somewhere abroad I have taken around 5000 US dollar I have spent around three and half thousand US dollar one and half thousand US dollar I still have can I say anyway I can go up to like 50 000 uh it's very well within the limit or should I Surrender that you know here I can take 2 lakh three thousand no in that I've only taken five thousand and at five thousand I spent three and a half thousand one thousand five hundred US dollar I have with me in my hand should I actually surrender it or can I keep it they say here you can retain only up to two thousand so here I have thousand five hundred so can I retain yes only up to two thousand I have to retain if it is more than two thousand surrender it whenever you want you take it no problem but you need to surrender these are the regulations resident but not permanent resident was employed or assigned in India for less than three years again he can bring no limit on bringing foreign currency notes Etc held when he was outside India when he's coming to India I can bring all those things no problem and any amount can be kept in a foreign currency denominated special bank account absolutely no problem and who are the authorized persons under come whenever I say RBI or bi Etc money will be deposited to whom to these people money changer dealer Offshore Banking unit money changer is ffmc or RMC restricted money changer full-fledged money changer full flash money changer can both buy and sell foreign exchange restricted guy can only buy penalties and all if you want yeah you study next adjudicating Authority this again is slightly interesting adjudicating Authority and appeal any problem in FEMA the prosecuting Authority will be either RBI or if it involves proceeds of crime it can also go under pmla but if it's a normal civil offense basically in fmr they are trying to tell you how to disclose whereas in pmla those who are undisclosed things linked to criminal offense that is your basically scheduled offense so to speak so if I take money from all of you and do not offer it to tax and then keep it with me that is not illegal as such that is not a scheduled offense as per you know pmla but nevertheless if I convert it to Foreign Exchange Etc and still keep it that's a FEMA violation that's a civil violation so their enforcement directorate of uh you know FEMA will take up but the moment if that those money that I took was actually proceeds of crime if it was proceeds of crime then it will go under pmla so the authority here is enforcement directorate Ed now any he is a Prosecuting Authority that is RBI or Ed against their order I can go to the adjudicating authority adjudicating authority is the court and this code will be a with which will definitely have a chairman who's a high court judge and around two to three members generally two members who will be Co District Court judge let's record that now against their order I can appeal generally everywhere it is appellate terminal is only one person only in FEMA two people I can either go to special director Appeals or I can go to appellate tribunal my choice I can go to special director appeals or I can go to appellate terminal if I go to special director appeals within how many days 45 days within 45 days I have to go to special director appeals and he will of course dispose it off and there is no time limit given and again if I am not happy with his uh what do you say his decision I can again appeal to appellate terminal or I can directly go to affiliate terminal now the question is why will I go to special director appeals and I can directly go to apply terminal very simple if you are directly go to applied terminal you have to deposit the full penalty amount that is the reason if I am going to if RBI or EDS 12 penalty 5 crores I said I don't agree okay you can go to apply terminal apply terminal forces deposit five crores if I don't have money or if I don't want to do it I can go to special director appeals that's the reason it is more time consuming but at least you don't have to pay money on the other end you can also go to apply terminal they will ask you to deposit ficro you can say sir I'll only deposit one crore and I can give you sufficient reasons I don't want to go through special director appeals and you know waste your time my time everybody's time I know for sure I have not broken any law but five cross I don't have sir I just have one two please adjust so yes wave it can be waived if under hardship then it will go where it should be disposed of within 180 days applicable it will go to high court on question of law within 60 high court to Supreme Court this is the adjudicating cool so we will do which one fcr or female what do you want vmla okay we'll start PML page number 256. yes pmla important been asking quite number of times so prevention of money laundering Act uh I have made couple of uh important charts combined everything and done it so as the name itself suggested it came way back in 2001 when this 9 11 happened uh in 2001 and after that they realized how is it possible that people are getting so much money and you know spreading terrorism across so there has to be some way where they will launder money so this is how they figured it out there are three processes of money laundering placement layering and integration the placement is uh small deposits of money that's what happened as I told you November 8th 2016 to 31st December they started depositing 30 000 crore through employees employees spouses employees children normal casual labor workforce also they opened their accounts and started doing all these things so it was absurd that how is this possible that there are two things here one is black money one is illegal money black money is what not not you know where tax has not been paid that's called black money whereas illegal money is proceeds of crime the most important thing to note here is the proceeds of crime so anything that you do proceeds of crime is the most important thing and that crime proceeds of crime also is actually uh across various things it's not just one single uh what do you say legislation it is not one single piece of legislation okay it's already there it's basically a part of a scheduled offense it basically it is part of a scheduled offense so a law was created where they said I will create a schedule and all the offenses in this schedule will be taken into account and if you are convicted under any of these offenses then pmla will get attracted the important thing to note here is these are all offenses under various laws you have Indian penal code here when you have a ndps then you have you know explosive Substances Act Like That so the beauty is just like a derivative instrument the value is derived from an asset here pmla offense is derived from some other law correct so all that in the schedule so such offenses they can ask this in the exam this word don't get confused such offense is called predicate offense predicate offense what do you mean by a predicate offense so it is derived from something else it's actually an English word in the normal English grammar subject verb subject and predicate so subject and predicate so subject is you know he uh loves swimming so he is a subject loves swimming where there's a verb and uh you know the another form of the verb whatever it is and the gerund assuming so this is also called as predicate so what they are trying to tell us when I use the word predicate offense they are trying to tell it is always secondary primary thing is already in that particular law so if you are converted in that law automatically will be connected under pmla so there is no need for you to again you know convict you but I just need to see whether that money that you have got is proceeds of crime is what you need to see so many many definitions also are amended deadly changes were made you see money laundering is the process of converting illegal or black money into legal or white money process used by criminals to wash their tainted money it's called washing that's why it is laundering laundering is derived from the word laundry it was started Way Way Back by guy called Al Capone he was one Dawn in Mexico and in USA so he started using this laundromax he opened laundry and he said today 100 people came one percent of the didn't come they said 100 people came converted all the black money by creating fake bills if your watch Breaking Bad there's a show called Breaking Bad one of the most you know Legendary Shows there he also does the same thing he you know creates you know laundromats car wash all those things the car wash Etc you will not know what to do hotels also they create to create fake bills let's see these many people came if you see all these big shots have hotels all cricketers will have hotels restaurants now you know why it is one of the part of the thing is to wash the money clean the money so they will do that so that everybody most of them will have restaurants when you have restaurants you can clean money so if there are thousand people who came today I can show two thousand who cares so you can do this to clean the money and they do it to rotate money it is a business which has been done process Spike used by criminals to wash their tainted money to make it clean is what they say prevention of money laundering Act is to prevent money laundering and to provide confiscation or property derived from or involved in money laundering what is the offense of money laundering say the entire money laundering thing came it keeps on coming usually but uh it all started that's why this is the basics right it all started to just give an example where you hide all your uh you know uh income you will hide everything and then you will start making a lot of money so the concept if you understand other things becomes very easy so what is this let's see offense of money laundering whosoever directly or indirectly attempts to indulge or knowingly assess or knowingly is a party or is actually involved in any process or activity connected with the proceeds of crime including its concealment possession acquisition or use projecting it or claiming it as untainted that's the best part though it is Tainted it has a stain it has a stain of proceeds of crime used showing it as untainted so there are many questions that arise which completely is cleaned by the act now there was one doubt I committed a crime let's say I killed somebody I got some money with that money I bought a house is that house Pursuits of crime yeah okay that house I gifted to my son my son started giving it on rent that rent is this was a doubt actually like this many things happened I had committed one offense I got a car that car that fellow gifted to his daughter daughter like that luxury car Fleet she made and she started giving it out on rent what about the rentals that she got is it proceeds of crime many many court judgments said no many many court judgments said yes nirmala Madam change everything she said if you continue to enjoy the proceeds however it may be directly or indirectly it is still proceeds of crime so even the rental income that you derive from that house is what Pursuits of crime deadly right so that's what recently only all these changes have come two three years ago that's it that is quite recent because this law has not been touched since a long time recently they have changed many things after 2016 actually the black money act came unregulated deposits act then the uh what is that uh income disclosure schema for that thing this one what do you see the black money and under deposit deposits then which the other one a fugitive economic offenders fugitive economic Offenders Act also came in 2018 all after demonetization and everything is revolving over this pmla also is linked to all these things so what are the types of questions that come first is this what do you mean by proceeds of crime so just the basics will do then more analysis after the break whosoever directly or indirectly attempts to indulge attempts to indulge means you know that you are doing it knowingly or unknowingly knowingly asset assists when I say knowingly then there is a criminal bent of mine mensriya or knowingly is a party or is actually involved in a process or activity and this was added past activity or continuing activity connected with what proceeds of crime proceeds of crime and what is this proceeds of crime it will include possession concealment acquisition and use anyone who enjoys the proceeds of crime also is liable under pmla anybody who enjoys the proceeds of crime also is liable under pmla proceeds of crime proceeds of crime is what they say so including possession concealment acquisition use possession concealment acquisition use also anyone who enjoys the proceeds of crime same thing proceeds of crime means what property derived or obtained directly or indirectly by any person doing a criminal activity so that criminal activity is what is given in the scheduled offense net scheduled offense is also what is called as predicate offense Part B value should be more than one crore more than one crore and what is that part B actually Part B is nothing Part B is only in customs act here this is part B false declaration under Customs Act only one item is there Paul's declaration false documentation under Customs Act is called as Part B so if you declare falsely to the tune of more than one crore then you will be committing an offense under Part B so under this false declaration you make false documents again 50 lakhs worth you will be charged render Customs act not under pmla right so in custom set to make false documentation more than one crore you will be charged there also also in pmla part number see if you see is part number a only no change but you see cross border implications now it is beyond the Border it is not just here you are committing an offense outside India also that is why you see they have also given that black money undisclosed foreign income and assets and imposition of Tax Act one is unregulated deposit check then black money act also black money undisclosed foreign income and assets and imposition of Tax Act 2015. if you are made to evade any attacks outside India undisclosed income everywhere cross-border implications part C so basically Part B is only Customs part C is cross-border implications of part A and this black money act part A is the main deal all these are proceeds of crime so anything that you can see here is proceeds of crime it can be anything for that matter so if you see I will just come to that after the break I'll show you all the examples so basically yeah that's what they are trying to tell it includes also what enjoying the proceeds of crime projecting or claiming it to be untainted property or claiming that the property is clean now that is the problem it is is that person is guilty of what money laundering that person will be guilty of money laundering property can be any Deeds or instrument property can be movable or removable property can be tangible or intangible also so property can be first one corporeal what do you mean by corporeal guys living so what I'm trying to tell is can you uh have anything which is living which is a property yes so basically you would have seen many many uh cases you would have seen many many cases during the course of the uh you know when you are checking the uh once again I'll show you one example now you will understand that you see in one particular case for the first in time in India chimpanzee was being smuggled and chimpanzee became a property obviously property corporeal incorporeal corporeal means what living so you are Pursuits of crime crime should be committed on the property what's the property here chimpanzee zimpanzee in West Bengal in one of the zoos that fellow was trying to poach the chimpanzees and the enforcement directorate Ed GES see attachment of property what property or chimpanzee so attaches chimpanzees marmoset under money laundering probe it's one of the first times in India that happened so property can be anything now this whatever he did whatever he did know first of all is it a scheduled offense is it a scheduled offend that also we need to check all offenses need not be scheduled offense he committed an offense I understand but is it a scheduled offense what do you think yes under which law protection act so basically obviously if you see the schedule there is of course you know Wildlife protection act also covered ndps unlawful to interactivities Armed sector Wildlife protection act hunting of wild animals so what Salman Khan did is what hunting of Island now tell me hunting of wild animals and consuming the meat is it proceeds of crime this also was a doubt I did not sell I just consumed yeah that is why that word is very important enjoying the proceeds of crime enjoying the benefits of the you know procedure crime that is what enjoying is what I ate I enjoyed so yes it is also definitely there so what this fellow did he killed the animal so basically and of course whether he consumed whatever it is that is Pursuits of crime but people generally sell the you know uh bones sell the uh tests of elephants Etc all these things definitely are proceeds of crime but even consumption until now there was always doubt when consumption now is what proceeds of crime so it depends on the facts of the case everything crucified plants trophy trophy animals Animal articles and all so that is the meaning of what coming back to this that's the meaning of corporeal or incorporeal tangible or intangible corporeal living incorporeal non-living like that so after the break we will go more in depth into each of these items and most importantly we will see basically in the exam deciding number 28 only they asked right and Reporting entity we've been asking in McQ and all those things everything will do and most important chart actually in my opinion is this one that is the attachment chart this one combined reading of attachment we'll do that we have to spend some time guys pmla they are asking now properly so let's not hurry up we'll do it properly and then if fcr and then we'll close t copy all right guys let's begin so we were doing this uh which one yeah property divider obtained directly or indirectly corporeal or incorp oil once again there are a couple of things cool so all this proceeds of crime so what are the proceeds of crime so if you see the various provisions of law proceeds of crime first one they talked about the uh what do you say and okay before that one second if you see this entire thing can I also take away the property which is what do you say they're not in India but outside India also can I take if you see offense of Manish money laundering offense of money laundering will it also include anything which is outside India so it depends on proceeds of crime proceeds of crime will it include in India or outside India both so if you see that's why all these small small amendments had come recently where properties taken or held outside the country then the property equivalent in value held within the country or which is held abroad so as you can see slowly there this was inserted in 2018. so like that over the past few years there have been quite a few changes in this entire definition where such property is taken or held outside the country then the property equivalent in value held within the country or held abroad that also is taken into consideration so if you see proceeds of crime means anything so this Vijay mallya's property was you know taken from all the cars etcetera which you owned was actually confiscated from Bangalore and other parts of the country though it was a value which was derived from India and outside India also other property also was taken into account so you see some of the other examples of money laundering so to speak is of course yeah not this sorry once again so of course in the narcotic drug and psychotropic Substances Act so we will keep on seeing these things which come so 60 houses checked in 38 foreigners found staying without valid or expired documents and they found all these drugs on them apart from that of course you see danzo delivery service that in the airport they were transporting snakes also these snakes are what uh sand boil it's called a two-headed snake literally two heads won't be there it's called two-headed snake so that sandbar that was prohibited under the wildlife protection act that also was what do you say uh taken over then if you see can you smuggle gold Etc this fellow in Kerala tried poor guy yeah Tom sawd his head and put one gold biscuit there and on that he put one more but it was caught so all these things are money laundering they are charged under some other offense but predicate offenses in India so it's all part of money laundering so to speak this I'll tell then of course these are the things uh that you know uh are important oh apart from this apart from this one thing that you have to see to believe it this is also you check Mysore CA arrested for growing ganja on now starts so 62 year old 62 year old chartered accountant was arrested for growing ganja or marijuana plants on the Terrace and backyard of his house so if you see all these are examples practical example this is the picture correct so somebody will take them to the Garden how are you feeling I'm Feeling High the second floor I'm Feeling High yeah feeling so nice man down it was so boring here and so on so that is what half kg 20 was there imagine and acting on a tip of and six thousand cash on the cruise jagannath to his name so means entire world not means the leader of the world no wonder right so acting on a tip of this what happened so if you see accused might have started illegal business 20 years ago only after his wife divorced him yes no children and he was living alone there were no customers at his house during the rate police suspect that he used to allow customers to smoke weed at his residence at large number of hookahs and also were there students of a nearby private college Unfortunately they are the customers so if you see here earlier he was mentoring CA students and he was teaching Hindu underwater joint family yeah that's what he was eating all that yeah joint family was teaching all that how to do how to attack how to tax another but after his wife divorce number of students also went down now full dot why were they coming there but that was a question so also he was a ganja smoker himself is what they said anyway so this they are taken him see this now you will understand reminded him in judicial custody so now quote after that all the inquiry investigation they have taken him to the judicial question now tell me so if you see here uh understanding the provisions using that example which is practical yes attempt to indulge of course that's yeah jagannath knowingly assist so there are other drug Peddlers also in and around the knowingly assisted him and our annoying your part actually in a lot about students yes they are also part of the money laundering thing apart from the property which is used or connected with proceeds of crime once scooter he used inside that all that weed Etc I put what about the scooter that is also proceeds of crime everything will be wiped out what about that house yes if house is owned by him that also will be taken into account all the hookah that uh 20 kashishas that he has that also will be all proceeds of crime that the deadly it is everything will be taken over by the enforcement directorate corporeal incorporeal tangible intangible movable immovable Deeds instruments all these things will be taken into account punishment under this money laundering is very simple here punishment this is number 22 but they can ask whereas Part B or something or they were asked this one of the two they can keep asking this punishment has come so many times if it is part two of narcotic drug and psychotropic substances most deadliest Aryan Khan was about to get under this one is ndps nspmla but they could not prove that he had any proceeds of crime message because he was the drugs were not on him but he was there among other people so three out of 10 years rigorous imprisonment this is the key word rigorous reverse means what you will be made to work there morning till evening you'll have to work then find any limit otherwise it is three to seven years first is three to ten otherwise it is three to seven years fine will be any limit narcotic drugs and psychotropic substances and the other one is other so that's the punishment so if they ask you anything regarding money laundering what see this is a combined chart of money laundering proceeds of crime property and scheduled offense everything is covered in this property means this is the definition of property proceeds of crime means this is the definition of proceeds of climate money laundering is basically everything attempt to indulge knowingly assist knowingly is a party actually involved is all they say then the reporting entity basically now everything comes under the control of FIU financial intelligence unit so fyu you have to report to them rigorously all banks everybody not just Banks what about stock broker not the stock broker what about any jewelry shop everybody has to report to FIU otherwise dangerous Provisions for them also it is going to be a problem for them also later when they are seeing so let us see let us just invert this provision and check it out once again Financial intelligence unit so reporting thing also there are so many Provisions I have compressed everything into this one chart so if you study this and go it should be sufficient so nothing to worry there should be sufficient one second I need to invert that that's the problem so let's see one second cool so this is the uh reporting entities report to FIU that is financial intelligence unit so all these companies should report reporting entities what are those companies first One Banking Company under two one e that can be a bank cooperative bank or any bank as per section 51 of the banking regulation act they have to uh obviously report everything every transaction that comes into it they have to report there will be some anti-money laundering guidelines as per the guidelines they need to report so the guidelines will be that suddenly from the average balance suddenly 10 times extra if you have got then you need to report will it be high value items or less items no less what's happened to me when I was in article ship my stipend was one thousand so one thousand one thousand five hundred one my dad had taken some life insurance policy so LIC or something they gave me the money because I knew I was doing CA I already did so there's no point of you know giving me separate money later life insurance not needed so they released twenty thousand that's all one one thousand one thousand was there suddenly twenty thousand they released I got a call from Canberra Bank anti-money laundering Squad saying that sir average balance is one thousand twenty times it has come how please explain so I had to send them the documentation of the life insurance and all those things imagine so they know high value items it is very it red flags will be there so they will check least lower level items so average bank balance into five times or into 10 times if it is there it triggers I'll call you so all those will go without that knowledge it will go to the FIU an income tax department also has everything one of my seniors works in the uh central processing center in you know CPC Bangalore he tells you breathe that will be recorded there in the income tax department everything that you do they know they're just not acting on it they are just not acting on it every detail they have correct so that's why this AIS also came everything that information system you are then you are reporting all these things so going forward anything because everything now if you see it's linked to your phone number right everything other and phone everything is linked so the moment you do anything they will get to know and they say they have abundant data they are just not using it so they are just letting you go so if you feel that okay this time your uh you know income tax you know the return got processed quickly they said nothing knowing they have all the data they're just not acting on it the day they feel that they should start you know looking at these things they will you know open the proceedings so that's what he was telling me because there are the excellent data that's why they paid so much money to Infosys right to get this robust system up and running so financial institution financial institution also as per 45 AC of RBI act include state fund company Housing Finance Company authorized person to see a FEMA payment system operator ndfc and Department of posts all these things we have to keep in mind person that is operator payment system includes overseas principle for example PayPal Etc all these things this that asked once payment system four marks what do you mean by payment System payment system is anything that enables payment between the payer and the beneficiary it will include what credit card operations debit card operations money transfer operation smart card operations all your paytm phone pay CC even Etc and also overseas principle means what PayPal outside India owns controls manages the payment system in India anybody who owns controls manages the payment system in India that is the same thing all those people will be taken into account so financial institution to any financial institution as per 45 IC of the RBI act includes all these people intermediary intermediary registered by pension fund regulatory Authority Stock Exchange NSC BSC Association under forward contract regulation act next stock broker that is Banker to an issue trustee all these people register to an issue Merchant Banker all these people should take it into account then person carrying on designated business or profession casino game of chance so all the casinos in Goa built in Royal and all these people they have to report register or sub register real estate agent real estate agent whose turnover is more than or equal to 20 lakhs per annum which is almost all real estate agents so they also have to report any transaction and also dealer in precious stones this these are all new Provisions yet to come right dealer in precious stones and metals cash transaction single or link transaction more than or equal to 10 lakhs with effect from 28 11 2020. if there's a single transaction or a link transaction cash transaction more than 10 lakhs all this I have to do the needful is what they are trying to tell these are all you know we have to do the needful this is what reporting entity is all about next moving on the duties of reporting entity duties of reporting entity section 12 maintenance of Records transactions maintain a record of all the transactions furnished to the director ffiu all the information and you should verify the identity of the clients also this is what the reporting entity should do and documents have to be maintained now in McQ they can ask you how many years should you maintain these documents for five years transactions rather five years what if the business is closed down from the date of closure five years and that is sedimented weapon of fires of the business relation between the client and Reporting entity has ended or the account has been closed whichever is later both the cases access to information director FIU to call for any of the above records or any additional information as you consider as necessary then verification now this is one new thing again again in McQ they can ask you the reporting entity will verify the identity of clients through other authentication other authentication notified reporting entity which has a responsibility of other authentication is the national payments Corporation of India National payments Corporation of India then offline verification also will be there then passport issued under section 4 of the passports Act use of any other official valid document or modes or identification has may be notified all these things so this npci National payments Corporation of India will be the main other authentication thing enhance due diligence so every reporting entity shell for every specified transaction verify the identity of the clients through other if other is not mandatory for the person then authentication to be done in some other prescribed manner take additional steps to examine the ownership and financial position no specified transaction can take place if verification is not done so this is extrapping 12 double A we can also do it through other with the proper verification system the prescription the prescribed things has not yet come however this these rules that I am showing you they are not part of your syllabus it's part of 6D but Institute can give it in McQ because Institute now says all regulations are there but these regulations specifically are there for 60 as such but don't take risk just go through this very simple it is what all you should disclose maintenance of Records nature and value how much all cash transactions more than 10 lakhs or it's equivalent in foreign currency all series of cash transactions integrally connected 10 lakhs or its equivalent all transactions involving reset by non-profit organizations of value more than rupees 10 lakhs all cash transactions were forged or counterfeit currency or Bank nodes have been used as genuine or were any forgery or valuable security has taken place all cross border wire transfers of the value of more than 5 lakh rupees or its equivalent in foreign currency basically only this cross border wire transfer is 5 lakh everything else is 10 lakh then purchase and sale of immobile property 50 lakhs or more so if you are doing 50 lakhs or more then all these reporting entities will have to report all these transactions so everything is 10 lakhs except cross border wire transfer 5 lakh only that you remember and your immovable power is 50 lakhs when the director FIU will make an inquiry into all these things so this question also was asked in the exam for four marks at least two to three times uh what is the power of the director to impose fine first he will make an inquiry with regard to the obligations of the reporting entity so on his own motion or an application made by any Authority officer or person he will make an inquiry requesting the reporting entity why you have not submitted any document yet then I will audit the records director may direct the concern reporting entity to get its record audited by a panel of accountants maintained by central government expenses to be borne by CG then non-compliance director FIU will inquire if no cooperation from reporting they will inquire as to why you have not given any documentation despite asking and I will get the books audited if you have not done any of these things first they will give a warning then I will direct you to comply with the provisions third I will send reports I will direct you to send the reports immediately then penalty director or employ this penalty if possible try to remember 10 000 Rupees to 1 lakh for each failure mind you each failure no civil or criminal liability for not Furnishing information no civil or criminal liability for not punishing information first there is a warning second direct them to comply third one direct them to send reports fourth one is a penalty so director employee 10 000 to 1 lakh each failure no civil or criminal liability for not Furnishing information for not Furnishing any information so this is one thing what are the things that the director will do first one he will give a warning second you will direct them to comply with the provisions third you will direct them to send reports fourth if you don't do it penalty other type of question that comes in pmla would be attachment of property related stuff attachment of property plus adjudication plus confiscation so everything basically is given here in this uh Master chart so if you read this chart it is more than sufficient so this chart is a sufficient compliance for us to understand so all the three sections are actually covered in this particular chart so the section actually is section 5 and 8 both combined so let's see how it is first of all before going here if to understand what do you mean by provisional attachment so what do you mean by provisional attachment so basically here provisional attachment so before that they will also ask you relating to search and seizure quickly understand that also uh so that you know that will also be clear that part so section 6 is 16 sorry is about Authority authorized by anyone who has the right to enter material in his position if he has reason to believe and reasons recorded in writing then Section 3 is activated that person in the course of his search she can enter any place permission information check can verify proceeds of crime place will be the where the place of activity is happening or any other place now what they are trying to tell is one dangerous part here section 16 and 17 of pmla so 16 is about power of survey so when I am doing the scores if I feel that you know I have to at you know inspect the accounts and enter and search I can do that under Section 17 during the survey this 16 is linked to 17 then if I feel that evidence is likely to be concealed or tampered I can record reasons and I can also seize the document whatever document you have I can definitely cease so 17 is where I have reason to believe and material in my position and any person has committed money laundering so for example that CA jagannath case committed money laundering 62 year old see Uncle I can search him or seize all the property possession of proceeds of crime drug Peddlers employed by him all the records of money laundering accountant or assistant who assisted the CIA Uncle then possession of property scooter used for drug peddling and shisha used for inhalation all these things all these things I can seize is what they are trying to tell the best part or the worst part so to speak if you see section 17 should I take permission of the Court or can I just enter so guys one more nirmala madams change here see omitted by Finance act what permission and entire permission has been omitted this again is in the Supreme Court as we speak deeming it to be unconstitutional this has given incredible powers to the officers and they are giving fake cases like this somebody doesn't like somebody and that officer is somebody's friend they'll go and tell just go to a rate without any head or tail they will say I have reason to believe instead I got dream reason to believe so I will know what you say enter your premises dangerous it is then I can also search the person also I can search any person sees any record I can do anything that is possible dangerous provisions and what whatever I see is material I take I will not sealed envelope give it to the double A that is adjudicating Authority and then I can also arrest the person if need be and within 24 hours I can detain the person basically and 24 hours producing before the Court all these things I can either take so for example the Denzel guy and snake you found a snake there before asking I can say sir I will not speak I will speak only in front of the Magistrate he will not know but generally anybody if you additional before that you can tell that I want to speak before the magistrate not before you so then in that case if we make such a requisition within print I can detain him and within 24 hours I have to produce him before the magistrate will record the reasons properly so this is one more provision which is there otherwise section 19 is arrest arrest with two witnesses so the problem with this is here you see first is what this section adjudication if I have seized any property under 17 and 18 that's what we did now it will go to the adjudicating Authority or if I have made a provisional attachment under Section 5. what do you mean by provisional attachment so yeah temporarily if I have attached anything temporarily if I have attached anything provisional attachment under Section Five so property which was already provisionally attached so I will go to a particular place and see their provisional attachment so that is Section 5 but interesting to know under Section 5 attachment of property provisional attachment temporary here also where a director not below the rank so and so he feels that there is any proceeds of crime he may order in writing provisionally attach such property for not exceeding 180 days that is what is given in the previous thing if you see your provisional attachment reasons in writing you see director or any other officer reasons and reason to believe recorded in writing materialness possession that he feels that it is you know I have to provisionally attach the property then he can do so that's why we had to do that to understand and here how many days I can provisionally attach 180 days 180 days I can provisionally attached that is the precursor to this so one I've already seized in seizure no permission needed as discussed provisional attachment you should give a letter to the Magistrate both these cases will lie between the edges before the adjudicating authority that is what I am trying to do that's why we explained history of 1718 and section 5. both parallel it goes 17 18 unfettered Powers you can do whatever you want then Section 5 both it goes to the adjudicating authority reason to believe reason to believe that the usage of property which is provisionally attached seized or frozen there is something called freezing of assets also seizure is taking over the possession of the goods freezing means what I enter a ship ship belongs to you enter a vessel I can't Seize The Vessel so what will I do I will freeze the assets I will put a lock saying that nobody should enter without permission yes bank records everything that also will be is Bank locker things stuff kept in the bank Locker there's confidentiality but I can seize the locker also and it's uh you know whatever is there inside so all these things can be done there are huge powers given for this particular inspector under pmla so that's what Oneness seizure Route One More is provisional attachment to provisional list is temporary if I have reason to believe that whatever I provisionally attached seized or frozen or and there is existence of proceeds of crime in my opinion I will give you 30 days to show cause to why there were the sources of income show me your sources of income or earnings and then why it should not be confiscated why it should not be confiscated why it should not be confiscated and then I will make an order basically I am trying to tell tell me why I should not confiscate the same so the thing is if you have not received any reply so first whatever was provisionally attached will first now be attached so temporary attachment will become I mean little permanent attachment whereby I will now seize all the documents take more control over the same when it is provisionally attached you can still use the goods you can still you know be with the goods whatever it is but the moment it is attached then they will comment take over the property records were seized or Frozen will now how many days will it be attached see provisional attachment is 180 days that is different final attachment this during the entire investigation attachment will be done because investigation would have started correct first when I have a doubt what will I do provisional attachment then when I give you a show cause notice and you don't give me any reply what will I do or any satisfactory reply what will I do attach when I attach investigation will begin and how long can it be attached don't write 180 here how long 365 days 365 days it can be attached or if there is any court case spending Etc until it is over I can do it till that time also what if they you bring about a stay order when I am about to attach you will bring about a stay order stay order also is excluded you bring about four months to order I will do 365 days plus four months 365 days plus four months pending proceeding code whether it's India or abroad whatever the case may be all these until such time attachment will happen so I repeat guys first is normal unfettered powers on the seizure then under attack provisional attachment provisionally I would have attached for 180 plus 180 but if I have reason to believe that this provisional attachment property sees property Etc is proceeds of crime I will give you a show cause for you to give me a reply as to why it should not be attached and eventually confiscated you don't give me anything so I will open my investigation and then attach well attachment whole how long will I attach for previous 65 days and during that attachment I will now continue with what the investigation and now director will now take possession of the goods because from provisional attachment has gone to attachment and then it will go to special code special code investigation Will Go On now that's what if the special court orders confiscation and that same property is in IDC also what to do like this is what happened in rotomac Vikram katari's all assets were lying with the company I mean that is the sotomac company's thing was their assets were there the special code said I want to attach everything I want to confiscate everything rotomac their Liquidator said no I'll not allow then to Supreme Court Supreme Court said both should be seen hand in hand but now the t2a has come and destroyed everything as per 32A even if special court has confiscated iebc will override this one pmla which will definitely go to code something will be struck down we have to wait and watch so director to take position directed to take possession of the entire thing and special code if it is not proven that there is money laundering then it will be released but if it is proven that it is used for money laundering then it will happen What confiscation the moment it is confiscated ownership now rests with central government and whatever you do nothing can be done it is free from all encumbrances encumbrance means charges nobody will have any right over it but now unfortunately subject to 32A subject to 32A because of that now that enter house Etc all that is there house belongs to somebody else or that bike belongs to understand Uncle example bike belongs to somebody else and that has been unfortunately attached seized and now confiscated also okay that guy will come hand back sir I thought this was teacher he was teaching something else I didn't know he was a chartered accountant he said give lend me your bike for some days I had one bike sir so I gave him I really did not know he was doing all these things he has to prove to the satisfaction of the court that he was genuine and he had no idea about that then what do you think you will will they give you that bike they may is what the law says not even shall May so special Court may tell the cge to restore to the person who has in good faith has legitimate interest in the property which has been confiscated for example bike and was actually suffered lost and is not at all involved in any way not at all involved in any way special Court will consider the claim during the trial may consider may consider the claim during the trial two that's the amendment they may consider okay maybe fine let's see they'll release the property this property belongs to you take it you have to prove your ownership though and also prove that you had nothing to do with it only then they may do so this is again one more important chart this is provisional attachment 180 days and here also stay order Etc will be taken excluded one more Amendment came in this in that 180 days 30 days from the date of conclusion of stay order also won't be counted this is for code delays State order is excluded today do you think the court will release it today only no it will take 0.56 days it may take 10 days if any holiday season is there 15 days so that 30 days is also added excluded from that on basically stay order is let's say for six months so your 180 days will be 180 days plus six months plus 30 days plus 30 days plus 30 days so that is one more Point here so apart from that what else is there let's see then they'll speak about the adjudicating authority here they are judicating Authority is whenever I say double A educating other who's the dedicating Authority here it is the chairperson and two members one member will have account law administration Finance or accountancy other person obvious a person over shall not be qualified for appointment as member of educating Authority in the field of law unless he is qualified for appointment as district judge or he has been a member of the Indian legal service the jurisdiction of the adjudicating authority may be exercised by benches thereof bench may be constituted by the chairperson of the educating Authority with one or two members the benches of the educating Authority shall ordinarily sit at New Delhi and such other places transfer of member transfer of cases all that the chairman feels it can keep on changing the main bench is at New Delhi but there will be multiple benches across the country special court is nothing but a criminal court guys a criminal court only will be designated as a special Court a sessions quote civil court is normal civil court Sessions Court is Criminal Court they will hear multiple criminal cases across various laws but a criminal court which is designated as special coroner pmla will only hear pmla cases that's why it's called as a special court so main bench will be in Delhi many other benches can be there across the country term of office chairperson and every member five years maximum age limit 65 years I don't understand the point of these questions but Institute will ask this who cares whether the chairman dies at 63 64 released by no one cares but nobody will know also what they are asking this in the exam right filling of vacancies appoint another person resignation from Office yes until the expiry of three months from the date of receipt of such notice or until a person is duly appointed whichever is earliest that is what it is so unfortunately one more question that they have asked which I'll see which I'll show you happily tribunalis these are the only parties here guys one adjuticating Authority then appellate Tribunal then it will obviously directly go to the high court special code will be for confiscation and other things appellate is actually a dedicating applied terminal then directly we'll go to the high court but this is the hierarchy it is there anyway what are the powers of the Civil Court same they are the powers of the Civil Court summoning and forcing ordinance receiving evidence issuing commissions and all these things so this is you can go through this nothing or this there all this we studied one deadly bouncer they asked ones three people I mean two people were hearing the case on pmla both of them started fighting for to do here so chairman will come into the picture this was for my question if a member of a bench consisting of two members differ in opinion on any point they shall State the point make a reference to the chairman so either hear the points himself refer the case for a third member so three members will decide then so one for one against the third will obviously be your deciding vote and it will be decided by majority of the members of the Appellate treatment who have heard the case including those who first heard it then appeal to the high court refine an appeal to the high court within 60 days on question of Law and fact and high court also can pardon if I am going Beyond serious also they can pardon so who will be the main person in the uh you know special Court central government in consultation with the chief justice for trial of offenses they can designate one or more Criminal Court as special code jurisdiction of all these things will be part of that if the same offenses basically that offends for example ndps case one ndps case is happening in one court ndps pmli is happening here is it a joint trial no trial of both the sets of offenses by the same court shall not be considered as joint rail similarly the same guy is being tried in the same social court for some other offense which is a pmla offense only is it a joint trial no each case will be separate each case will be separate but now coming to the most deadliest Point again section 45 same copy paste as 212. 212 subsection 6. this was where in 2018 or 19 there was one case law where rowington economy and the same person said it is unconstitutional what happened was in for example in Wildlife protection act the amount was imprisonment was let's say two years and bail was easily you know you can get bail but the same offense in pmla because even though it's a predicate offense they are they are telling you should first prove your innocence same dialogue see prove your innocence reasonable grounds for believing that is not guilty you have to prove your innocence under this section you have to prove your innocence and here following can be released on bail based on direction of special code without following the above points is an exception to the above point what the same thing one is 16 years woman sick or inform fourth one fourth one fourth one fourth one is what fourth one you see this is the amendment guys if accused done what you know if accused either on his own or along with the other co-accused is accused of money laundering some of how much one crore rupees less than one crore rupees less than one crore rupees this is the thing uh how much money will you will that telling one crow this is important because you have to remember if the amount is less than one curve I can let you out on Bill no problem normal rule no need to prove your your innocence you just have to tell that you are not a Flight Risk you had to prove that you can you should promise to comment keep signing every week and all those things we accused is either on his own or along with other co-accused his accused of money laundering some of less than one crore rupees this is no nobody can release that's what what happened was that's what coming to that thing now can anybody release these people on bail these people of course you can release but what about the other people here no that's what this Supreme Court said not possible I mean Supreme Court said this entire section 45 is not at all constitutional and one deadly amendment has come which they have not asked till now guys they have not asked this amendment so here an explanation was added this was to strike down that supreme court judgment in 2019 only it came but still they have not asked this in the exam they have told because the Judgment said one offense will be somewhere in ndps or another loss it is nothing but here you know you are charging so much why but then you see the removal of doubts it is hereby clarified that the expression offenses to be cognizable and non-bailable rowington eponymous point was the offense under the main Act is available just because it is part of pmla or making it non-vellable how fair is that it's not fair because underlying of main asset main officer is available but here you are making it non-vellable so at least there has to be some basis is what he told but you see for the removal of doubts it is hereby clarified that the expression offensive be cognizable and non-millable shall mean and shall be deemed to have always meant from beginning that all offenses under this act shall be cognizable and non-vellable even though something will talk simple words even though something Ultra is given in code of criminal procedure and accordingly officers authorize under this act as empowered to arrest anybody without warrant deadly so sorry no that's what I'm saying this special code it's here it is always meant to be the same so that high court power also was struck down by the recent Amendment it is not there in a syllabus I am not doing so new amendment has come again I nobody basically full power is given to whom special code full power is going to special Court recently only rowington Avenue is not is retired now he went to the Mumbai Bar Association and he told that I had released I had made one nice judgment which is very fair and it's very very sad because now he's a judge he's no longer a judge he can actually really tell his views he told that it's very sad that the government struck down my judgment I am not sad that they stuck down my judgment but it's actually against the Indian constitution so one more Amendment government has met that is still not appearing in your raw in any of those things so it is not applicable for our exam data so basically everything power is with whom the special code special code has the power so that is what it clearly says so offenses are tribal by special courts ultimately the bail provisions of the special Court same thing nobody is getting bail anymore because you have to prove that you are innocent it's the most dangerous thing last part this is very easy reciprocal arrangements or resistance I can I go to what do you say other country and say Sir this particular fellow's asset is there can I take over yes they are trying to do it that's why Narendra Modi goes and speaks to so many countries diplomatic relationships so that tomorrow it will be very easy for us to do so for example he went to Malaysia and he was speaking about one guy called Zakir Naik so Zakir Naik is an Indian he in India he started talking a lot about various religions so you would have seen about he had a TV he had called he had a channel Called Peace TV Indian televangelist this fellow so he had something called peace TV in that basically if you have asked any doubts no you used to tell according to this uh para number three of bhagavad-gita line number two word number three I'm not joking check out his videos bible verse number three right number two then again you know your Quran should have all these things but then he used to misinterpret the religious scriptures and then slowly entice people or you know invoke people provoke people into doing something and because of that actually people listen to him in India also they started doing some terrorist activities and in Bangladesh also terrorist activities happened he was the main culprit to peace TV and irony is very still yeah so then what happened was that's why he ran away to Malaysia is wanted for what pmla translation is Iran away to Malaysia when Narendra Modi went to Malaysia and met the Malaysian Premier he said I want to bring back this guy you know Zakir Naik so like that so Ravi pujari there was one Dawn underworld Dawn so he also is from Mangalore so he what do you say was uh in Senegal and South Africa they brought him to Bangalore all this under reciprocal Arrangements you can do that then this guy nirav Modi was found in UK somebody uh you know identified him he was wearing uh you know jacket where you know which was of an ostrich skin ostrich skin almost some 25 30 lakhs worth of jacket he was living in a house which is almost uh 20 lakhs per month rent right imagine he has duped the banks of seven thousand eight thousand crores and is chilling there so that ostrich skin also they said I want now to take over all the assets of Nira Modi they're still trying openly told I did not do anything Kingfisher date Solomon versus Solomon right he had the orders and he also told I cannot don't want to come to India because in jail mosquitoes are there I'm not even making it up you can these are all actual interviews you know mosquitoes are there and not come so but that's why these they are strengthening the pmla provisions this is the part anything outside India you should you can have an agreement with these countries so basically Contracting state is the state where you make an agreement with then these are all easy so if you want to take over assets from there you have to contact the court there investigating agency there reciprocal Arrangement diplomatic all these things should be there and then you can bring it back reverse they want some property from your same thing they will do what about persons can I bring a person transfer of accused persons to India Ravi pujari that is what through this it happened someone said gave their warrant was released there then he was brought into India arrested and brought into India reverse from India can I transport yes but also can happen can I can transport or transfer prisoner transfer they call it accused persons from India also so this is reciprocal Arrangements which we have to do where it is from another summons warrant Etc from another court that also they can you know keep asking the exam these are all very simple stuff same what about attachment seizure and confiscation of property in a Contracting state or in India that also I can do to some extent properties have been attached abroad these properties have been attached abroad they are trying to do it for Niro Modi also you have to wait and watch so this is the next part of the story apart from that these ah these areas have not come with so I have included it here these people know sometimes they can ask you the uh what do you say the officer simply has some problem against you that's why he is constantly annoying you with various search seizure Etc is there any punishment against him this question has not come is there any punishment against him yes section 62 vexatious search vexatious vexatious means what causing annoyance to the other person any Authority without recording any reasons searches or causes to be searched any building or place or detains or searches or race any person shall for every such offense is liable on conviction or imprisonment up to two years or fine up to 50 000 or both imprisonment up to two years or fine fifty thousand or both punishment for false information or failure to give information section 63 any person willfully and maliciously giving false information and so causing an arrest or a search to be made under this act on conviction shall be liable to imprisonment of two years or fine up to fifty thousand or both so who is what willfully and maliciously giving false information so this also when I ask for information if you feed wrong information this is what is going to happen and if any person being legally bound to State the truth but refuses to answer and refuses to sign any statement because when I go and search when I give the documentation you need to sign these were the things which are seized if he says that I will not sign he will also have to pay a penalty of 500 Rupees to 10 000 rupees per default if I go and summon him and ask him to give evidence and reduce books same thing will happen then when I am giving a notice correct some spelling mistakes if it happens for example in my name always people make mistakes spinner wash and all they'll write it has happened many things correct so at in one place that written was now let's say that fellow has written punar wash superb I will give that thing to me I'll say Sir this is not me spelling mistake is not me some other fellow you want I am not the culprit can I claim like that no section 68 if there's any mistake defect Omission in a notice summons order document it is a valid document even if it is made according to the intent and purpose of the ACT recovery of fine or penalty where any fine or penalty under Section 13 or 63 is not paid within six months from the day of imposition of fine or penalty the director or any other officer can recover the amount from the set person can recover and as far as companies are concerned when I say company is the culprit who will be the culprit I will lift the corporate will and make the MD MD or the concerned person provided if it did not take place without his knowledge is not liable to punishment if he proves that it took place without his knowledge basically he should say that I did not commit this I did not know about this it's very difficult to prove then if he then he can escape otherwise MD and concerned person will be liable there is this uh for example it's not money laundering generally I am saying that this any uh liability on the company means I left the corporate well and make the MD liable but I need to see whether MD is directly liable or if there is any something called secondhand liability called vicarious liability so basically there was one Higher Regency case law where that fellow was smoking and drinking there in an area which was there was no power so this fellow was a non-smoking Zone he was there he asked for the smoking Zone he said sir there is no smoking Zone but there is construction going on on top you can go and smoke there is what the steward told so this fellow when he went up he slipped and fell he was drinking true story next day put a case against MD MD of hayat Regency saying that construction is not done properly went to court is MD liable no MD is not liable for these kind of things there is no vicarious liability on the other hand there was an upar Cinema tragedy in 1990s when that movie border came so there what happened was in Upper Cinema in Delhi the owner the directors themselves blocked all the exits and had put chairs there also for people to watch the movie there was a fire that broke out and completely all the people inside the cinema Hall were charred to deck it was one of the most what do you say Sad saddest or you say incidents in our country I hope you've heard it a person I think Netflix one show has come trial by fire trial by fire show by Netflix this this fellow is there in that uh about you all correct so that show I mean I used to tell this example long time back thankfully I made a show also apparently it's good to watch it so that show is based on upperhar Cinema tragedy so yes all now in that case that both the directors are in jail criminal liability so it depends on the facts of the case so here offenses by company is concerned person they will be taken into record section 71 Act 11 overriding effect but then 32A overrides this also after you after the person dies will anything uh continue yes basically the legal hairs or Representatives will continue but they can also prefer an appeal against all these things that is what they say very very simple so that is regarding pmla anything they can ask guys it's quite simple actually whatever we have done here study and go anything they can ask you four to six marks and hopefully they are asking for nine marks also so we will take a short break you want or no I have no problem I can continue no yes no yes no how many of you want okay video okay only few people one okay video then video video cool so coming to fcra foreign contribution regulation Act so fcra just a brief quickly afcra came about in 1976 first actually fcra came in 1976 uh it was introduced by Indra Gandhi because people uh you know the CIA the intelligence agency of USA they were actually pumping in money and helping BJP to be very honest with you that's how it is whereas Russia that is KGB they were you know helping the Congress so it was introduced fcra to completely prohibit these dealings and in a way uh give permission to some agencies for this where KGB agent KB KGB organizations from outside money could come and that could be used for various things we have to understand the history because from 1950s onwards these CIA and KGB both were pumping in money and buying politicians buying judges and that time there was no TV as such it was only radio and more than radio newspapers so they used to buy columnist artist editor everybody so those things are still relevant today that's why we have to do this so what 1976 they did was they completely prohibited this from outside anything coming into India but they said organizations can take this organizations can take this but I will give a license I will give a license so so many changes happened and then eventually in the year 2010 one more fcra came about one more fcr I came about and during this time one more Menace happened that was terrorism terrorism and one more Menace of conversion conversion from one religion to any Village it can be any religion it can be in there to Muslim Muslim to Christian Hindu to Christian whatever the case may be conversion activities were happening rampantly money was coming from outside so they had to stop that also they have to stop stop that also so that is one part of this very second part of the story is uh if any IIs officer or any judge Etc wanted something uh basically from outside to pass a judgment in your favor there were some corrupt judges and some corrupt people who are actually taking monot money directly but indirectly they were taking Hospitality how they'll say that basically if you come to an IIs officer and say Sir can you please ensure that this particular project is passed under my name he will just say yeah sure anyway I was planning to go to South Africa actually not till anything planning to go to South Africa I generally travel business class and I want to go with my full family for seven days planning to go that's it the other fellow will understand it's a sure said it will be done next day all the fully expense you know paid prep is ready this also is to happen so the briefly the basics of fcr is one is the Menace of foreign contribution foreign contribution second one is foreign hospitality or in contribution is one for in hospitality is one more these two things must be stopped that is the intention of uh you know fcra foreign contribution for what or in contribution for coming money coming in using it for political purpose using it for judges using it for artists using it for a TV TV uh your entire editors Etc all this should be banned so here they said some cases it is prohibited and in some cases I will allow it in very some cases foreign Hospitality they say it is it is never prohibited it is always restricted so this Basics if you have then we can do the uh chapter very simple foreign basically this is what it was and also I will not give any money to any NGO Etc which is known to do proselytization proselytization means conversion conversion activities and if it's uh you know spreading communal disharmony all that I will not do so basically you need to understand this this and this and many changes have been brought forward in this particular law especially if money is coming to let's say Lions Club can Lions Club transfer that money to Rotary Club and Rotary Club transfer to some other club all was allowed before now everything is prohibited they said if you are taking money from outside India you should be registered fcra registered or only for this particular item one once your money is coming only for this one item I will give you special permission that's it after that I will not allow you to transfer it elsewhere then one more deadly change came earlier people used to take money from wherever they wanted open bank accounts anywhere and take they said I am going to centralize everything where SBI yeah anyway they'll sleep SBI New Delhi only in that particular branch correct one branch is there in SBI main branch there only are to open an account the one rupee also outside if it's coming means it should hit your SBI account in Delhi deadly all these amendments came in 2020 21 22. dangerous right it should be that is before at during covet these things came money because now in the name of covet you'll start sending it to any random things and they'll start using conversion activities will encourage it happen you convert to this religion code will go that fellow only went before covet went right so that used to happen correct there are so many you know people who do the conversion activities Hindu Babas there is this is made movies are all MSG messenger of God MSG movies so that fellow he was in jail now he came out on parole actually if you see under his ashram 250 skeletons he has murdered 250 minimum 250 people Ram Rahim Singh insan you can check him so that that's what it is then you have many there was one Rara Baba correct his name only was so used to convert everyone but he was used to be a kidney specialist he used to touch that person's kidney and he said yeah he should tell Rara to shout kidney only gone so the same lady used to come in all videos that's a different thing but yeah that is what Rara Baba used to be there so that is what is it father Sebastian Martin he's a chartered accountant right so Rara ra Baba was into conversion activities unfortunately but then later he was found dead and irony was when they did postmortem kidney failure right yeah so by healing other kidneys for him only it happened so this insan also used to convert this Sebastian Martin also conversion so all this nonsense all money is coming from outside so it is believed it is still happening every day there is this movie runs if you see trance movie it's a very bold movie to be made so that shows clearly how the entire thing happens right so if you see either way they believe and all of us should believe that religion is something which is very personal you may be born into some religion but what you accept is your choice but you cannot be forced into it paid money to do it is what they believe so these things should be nipped in the bud that is why so many changes came Oneness first of all this I'm deluding the changes so that then we can when we do the law you'll understand properly if money is coming to one organization it should come only in Delhi so from there can I transfer the other accounts that's up to you but the money one rupees if it's coming one dollar it should come only to deliver because I can track it is linked to F5 already Financial intelligence unit will be seeing each and every dollar that is coming in where you are using it second part unregistered entities and all I will not allow register take a certificate take money sir can I transfer to anybody else no not a lot and then if anything goes wrong I can suspend the certificate I can cancel the certificate and do other things as I feel necessary so dangerous Provisions so on with that uh background let us study foreign contribution which I've given some highlights also what all is there and now again kyc Norms have been strengthened aadhar card other number oci number all that I need to take so foreign contribution regulation act the fcra was enacted to regulate the acceptance and utilization of foreign contribution or Hospitality so important to know what is foreign contribution important what is foreign hospitality and everything is linked to one dialogue foreign Source what is a foreign source is what we need to see what is the foreign source is what we need to see so one by one uh these are all the uh highlights of the changes that have happened no foreign contribution can be accepted by employee of any Corporation or any other body corporate owned or controlled by government they said government corporations cannot accept anything Amendment had completely put prohibition on transfer of foreign contribution to other person this is what Lions Club to Rotary Club prohibited now central government can restrict or private a person from utilizing unneutilized foreign contribution you have to utilize for the purpose comment comes to know you're utilizing for conversion activities suddenly they can come and say I'll freeze your account you will not use one rupee also there are there is some ten thousand dollars in your account one lakh dollars in your account it will not be there so almost one billion dollars came into the country in the last four five years for conversion and terrorist activities as per government reports so they say fcri will tighten it in such a way that nobody will come inside the no money which is through hawala transaction will come inside the country other number passport or oci card is mandatory now Asia is the overseas citizen of India that is mandatory for prior permission or registration under fcra restriction on administrative expenses what they used to do was there is to take money from abroad and then use it to pay salary Etc they got let's say one lakh dollars and sixty fifty fifty thousand dollars they were using it for what administrative expenses so now they have reduced it to only 20 percent these are all the major amendments that have come in the last uh couple of years opening of scfcra account before making application for registration yes you can open now provision for surrender let's say you're not fulfilling the provisions you can Surrender Your certificate as well all money should be received and spent from fcra account Only Money cannot be transferred to any other account than fcra it applies to whole of India applies to citizens of India outside India and it applies to associate drawing subsidiaries and all these things so most important definitions are these is what we are going to do first one what is it foreign contribution means what foreign contribution means DDT donation delivery transfer by Foreign Source who is foreign Source we'll see is your auntie foreign source is living abroad is she a foreign source it depends is she a citizen of India or citizen of USA or wherever which would have stayed for a long time and become a citizen there that I have to see is she actually getting me the whatever giving me those articles currency Etc or some other company is giving a tour and she is giving it to me all that I need to check foreign Source part we will see later let's just understand what do you mean by Foreign contribution these are the keywords write this you will get marks in the examination DDT donation delivery transfer donation delivery transfer transfer is transfer of ownership delivery can be transfer of possession also and donation is obviously where she is giving the money afford any article any article my auntie is giving me a 47 I got where can I go abroad so she gave me one small gift which is worth some 10 000 rupees what she gave me what do you think Philips CRA come no why because there is an exemption less than or equal to equals 25 000 before now it is one lakh up to one lakh no problem gift I can take so my auntie gifted me a drone worth 2 lakh rupees is it a foreign contribution yes assuming my auntie is a foreign Source assuming my auntie is a foreign Source then that article also whatever she has given 2 lakh rupees will be foreign contribution foreign contribution to only people covered under Section 3 is privated that is most important so basically that drone whatever I told you should be used for a people who are covered under section three we will see that otherwise no problem otherwise no problem if my auntie brings me from 10 lakh Rupees item and I declare it in customs and I'll tell that I'm using it for my personal purpose no problem but if it is used for whom Section 3 people then it is prohibited why Section 3 it comes from the history all the judges politicians and all those people next currency currency also Indian currency also foreign currency also for peace there is no one lakh limit for this there is no unlocked limit so I go abroad meet my auntie put one die generally before going see in one envelope she gives me one thousand and one dollars one thousand one dollar I am bringing it back is it actually foreign contribution yes assuming my aunt is a foreign Source that's all simple or any security she gives me Tesla shares she gives me shares of Tesla yes it is a foreign contribution assuming my Aunty is a foreign Source we will see that foreign Source later so DDT delivery donation transfer article currency or security moving back here now if you see now any donation delivery or transfer by any person has received it from any foreign Source either directly or indirectly to one or more persons will be deemed to be foreign contribution interest accrual on such foreign contribution also if I'm deposit that in a bank interest accrued also will be deemed to be foreign contribution now on the other hand there are many such colleges where you see uh people from other countries are staying people from underdeveloped countries like India Uganda all these people will be staying with students will be studying here you would have seen now their parents send money to the college is it foreign contribution citizens of other country definitely there foreign source so they are sending money to an educational institution or in contribution when that be the case it will be very difficult to manage and what if for their staying Etc they are opening what you say uh hostels Etc host for hostels they are sending money that's why on small exemption year it does not foreign contribution any amount received by any person from a sovereign Source in India by way of fee including fee charged by an educational institution in India from foreign student or towards cost in lieu of goods or services rendered by person in the ordinary course of business export consideration and I am providing some foreign consultancy Services they are sending me dollars it is not foreign contribution so obviously if you you have some item you are selling some Goods exports money is coming in not foreign contribution summer regulations will come of course but it is not foreign contribution that's why exemption is there it is legitimate ordinary course of business trade Etc no problem P will also include any professional fee or including free charge by educational institution no problem either within India or outside India no problem any contribution receipt from an agent of a foreign Source towards such fee or cost it is not called foreign contribution next is foreign Hospitality or in Hospitality again guys this foreign Hospitality should be done only by certain people for example I have my my Dad's friend is a famous surgeon for him whenever he wants to go out also very it's very free for him always right these Pharma companies will come you know transplant surgeon and if you if I say this Pharma companies tablet you buy that is lifelong medication imagine for the Pharma company how much money they'll make so this Dad's friend of mine every time he wants to go abroad he will catch hold of a Pharma company and I'll say boss 7 to go abroad I will he'll say sir you should please recommend my uh tablet I will get me get me three expense paid trip to so and so country does it really he does it is that foreign hospitality no because foreign hospitality is only for few people people are specified in the section that will have to see not for all so if I and you do it no problem but if a judge does it Member of Parliament does it then it's a problem if IIs officer does it then it's a problem so if you see foreign Hospitality means this was asked in the exam three marks Define foreign hospitality foreign Hospitality means an offer which is not a casual one you will meet some fellow who don't want to meet on the road why don't you come home sometime that is a casual offer this is not casual offer this is a genuine you know offer where I am saying boss I will give you this foreign abroad you come I will take care IIs officer you have to pass a project that fellow says my mother is ailing I need treatment cancer treatment abroad no problem sir will be organized yes it is not a casual offer it's quid pro Coke you do this for me I will pass the you know entire thing for you so means an offer not a casual one in cash or in kind from a foreign Source who's a foreign Source will see to a person where in a foreign country what all is free cost of travel you will give or boarding lodging transport medical treatment all these things if he gives it is called foreign Hospitality it to me figures no problem Parliament then it's a problem so we need to Now understand we've understood what is foreign Hospitality we understood what is a foreign contribution but we don't know who's a foreign Source that's the most important thing once you understand foreign Source still it's not over you need to understand who are prohibited right normal fellows are not prohibited only certain people are privated that's why because of the history 1976 history 2010 history right now moving on now what is a foreign Source let's see check this this is the definition of foreign Source space number 280. all these people are foreign Source first government agency of a foreign country obviously CIA KGB all these are foreign any International agency International agency Bill and Melinda Gates Foundation an international agency money coming from Bill and Melinda gets Foundation into India what do you think foreign yes but there are specific exemptions in Income Tax Act for that no problem but is it a foreign yes but I am begging for money from World Bank World Bank is bringing money into India assume shall I say foreign Source that's why they have said not including U.N World Bank IMF right un World Bank IMF though it is foreign source is not a foreign Source correct so it is actually foreign then any foreign company or any Corporation or a MNC multinational corporation so if you see what is MNC if you see anything having operations in two or more countries now tell me Infosys is giving salary to its employees in India is Infosys foreign foreign C Indian MNC also is there in position MNC right so if you see is there a company incorporated in India under companies act having its operations in two or more countries MNC no next one whether earnings from foreign clients by a person in lieu of goods sold or service rendered by Traders foreign contribution no I can earn money no problem and for foreign contribution be received in rupees yes any donation Indian currency or foreign currency any donation you know delivery transfer such transactions even in rupees are considered as foreign contribution will interest or other income Etc be added yes my aunties NRI she gives the nation is it foreign Source you see this list here Aunty covered or not then yes Avanti's NRI no so if you see Point number five whether donation given by NRA it has foreign contribution these are all taken from ICI material only this question answers is that recent material they've added all this he send me the couple of attempts before uh only speaks about citizen of foreign country therefore contributions made by citizen of India living in another country NRI from his personal savings Etc through normal banking channels is not at all foreign contribution however while accepting any donation it is advisable to obtain the passport details now next we will come to this here trade unions trade unions trade unions so kudal column nuclear plant is there there the entire nuclear plant was shut down because the labor union strike happened then when they investigated the matter they found out money is coming from USA USA Labor Union has sent money to these people and said I will pay you your salary for three months don't work then they analyzed why then they realized because this entire deal was given to Russians the nuclear plant enter reactor work was given to Russians Americans cannot take it so the American labor party actually sent money to this nuclear plant practical case asked in the exam for four months American labor party made donation to India for something what do you think foreign contribution yes or in so Trade union reunion now if a government of foreign country or citizens of a foreign company or corporations or trust or societies aop having more than 50 percent of face value greater than 50 percent of face value in an Indian company then it is a foreign source for example vedanta plc definitely it is a company which is incorporated outside India right they transferred money to Cesar Goa one more uh company subsidiary company in India and they started giving money to various people and mind you this should be people who are prohibited so they actually paid BJP they actually paid Congress true story they paid both Congress and BJP so now tell me this issue went to court this guy up prashan bhushan of up he raised this issue it during 2014 it went to court they said boss it's a foreign company any company in corporate outside India foreign company and it has its more than 50 percent it is controlling Indian company and Indian companies giving it is deemed to be foreign company government of foreign country or citizens or any foreign company also all put together or in company if it has more than 50 Indian company that example plc right you remember I just discussed in cluster number eight on definition of foreign company in that I told you if more than 50 is held by Indian then it is doomed to be Indian coming or uh you know arunjably change that section whatever you read was a chain section only so he because both were caught correct that is jaitly so they were like now Phil it is Avengers Now Avengers all coming Avengers assembled right so what happened they said now they changed that section 379 too where they set anything if it is owned by Indian vedanta pH is owned by an Indian you see in that Indian citizens owning more than 50 percent right of the face value all that whatever paid of capital will be what deemed to be Indian company so they went to the court and said sir it's Indian company only use it foreign but then if you see the definition of fcra this is only one part of it but there is proper definition what is a foreign company any company incorporated outside India any company incorporated outside India is a foreign company so the court said boss okay you may have changed this I agree fine but do you agree that vedanta PLC is a company in corporate outside India yes sir so it may be an Indian company under companies Act but it is a foreign company under fcra it's a foreign company under fcr it happened so most important change right what did they do they said even if it is for it won't even make sense to you that's why when you when I tell you this Logic on why it came only then you'll understand in the exam also so vedanta plc actually is a foreign company it may not be a foreign company as per companies at hundred percent it may be an Indian company but as per fcra any company in corporate outside India is foreign company this is hundred percent foreign company and they have already taken money here both are guilty it went to court because of Prashant bhushan now the problem is what to do besties change the law only right so in 2014 they changed the law with retrospective effect from 2010 with a transparate effect from 2010 they changed the law they said even if I have taken from foreign company if it is through legal channels as accepted under FEMA then no problem so they have taken money through that truth only FEMA so no problem so retrospectively that judgment was nullified so if you see now you will understand your check this part question number six whether hundred percent subsidiary of a foreign company 90 sector can give donation to a trust who doesn't have registration under fcra yes it can as per Proviso to two one A6 since the investment is within the limits of FEMA though it may be a hundred percent subsidiary of a foreign company it is not at all a foreign Source observed it is not a foreign source right it is not a foreign source so basically this is a foreign Source hundred percent but if through FEMA regulations if it goes through them not a foreign source not a foreign which was you know made under this particular legislation so as I told you there are many such you know cases which they have done that is one part of the story yeah that change was there in the finance act 2016 as I told you what does it say here with effect from which date guys 26 September 2010 inserted with effect from 26 September 2010 so retrospective appointment retrospective Amendment from 26 September that's what nominal value if it is within FEMA then it shall not be a foreign source shall not be a foreign source but if you see this was only from 2010 to 2000 I mean that this happened in 2017 so only this retrofit appointment but then chidambara masked jaitly bro what about us from 1976 also we have to do something right let's cleanse the sins of our fathers everything father mother everybody so we will just cleanse everything will cleanse everything let's do something so again Arun deadly I told you no before he died deadly amendments 2018 on small Amendment he did nobody saw it yeah in the opening paragraph for the figures 26th chapter of 2010 the figures 5th August 1976 shall be substituted very simple so it is amendment is from which retrospective 1970 so whatever you may have done from before everything is cleansed it doesn't even make any sense a foreign company donating into India and India and Company giving to many other people it is 100 foreign Source if I did not explain this logic to you you would be wondering what is this logic this is the logic they're basically nullified the decisions so all the sins made committed by BJP Congress and all political parties cleansed no need to go to ganga go to jail right they'll do the they'll do the needful right that's what yes so but the thing is what goes around comes around unfortunately jaitly passed away and this chidambaram was jailed in the INX media case so what goes around will definitely come around in some way or the other yes but even when he was going to jelly was so sure he said I will come back maximum in 120 130 days he came out also so it's very simple he is brilliant he's one of the Avengers Lungi man right yeah sir so if Emma it is not a foreign Source very simple so this is not a for it is absurd I cannot explain the logic you will ask me why it is not a foreign source that is the logic it is purely a political decision best part was after doing all these things now they are tightening everything you can't give money here because they are they are completely clean all the political parties are clean Union next foreign trust or foreign Foundation again that Melinda Gates Foundation also saying any society or Club foreign Society foreign Club citizen of foreign country so my auntie giving again if she's a foreigner your U.S citizen then yes so U.S citizen then definitely it will come it doesn't matter where you got the money from it should come from a citizen it can come from India also so it is citizen of foreign country so that is what it is again I repeat just because it is a foreign source and just because it is a foreign contribution it will not be prohibited private people are the next list now the following people are prohibited here whether an individual of Indian origin who has acquired foreign nationalities dated as foreign Source yes Priyanka Chopra right yes Priyanka Chopra is a individual of Indian Indian citizen then she became Pio person of Indian origin now she is a U.S citizen so yes money received from her Etc now she's stated as a foreign of Indian origin is what even a spouse of an Indian citizen is a person of Indian origin so let's say a person called Mr Rajiv just out of the blue he went goes to Italy and marries somebody right so will that somebody will that somebody become Pio yes why spouse of an Indian citizeness person of Indian origin that was inserted that time during Rajiv Gandhi's time so that Sonia Gandhi and others could take by property true story guys you should know our history all our Crooks there is nothing about BJP Congress everybody are Crooks only everybody are smart everybody is smart should understand what all they did everyone and everyone for that matter so yes so they change the law only person of Indian origin why Malik is also a spouse of an Indian citizen Sania Mirza but they have clearly mentioned Pakistani fellow is not allowed so I mentioned that Pakistani Bangladeshi fellows not a lot so those people crying yes so that is what all citizens of foreign country traded as foreign source so I again repeat foreign source is one we have seen already they can give this also for in Hospitality they are given for three marks many times to three times then this also they are given but all these things will be prohibited only for certain people not for all even foreign hospitality is restricted for certain people that certain people who are there we need to see let's check that now here yes this is for what prohibition to accept foreign contribution these people cannot accept foreign contribution or what is foreign contribution we know these people cannot accept candidate for an election candidate for an election will this include your uh College election because College election is the most important thing that is the breeding ground of the future politician really so but that is not covered here they are given candidate for election that is legislative Council or Assembly not there now this is the amendment guys fcr Amendment act 2020 public servant IAS IPS ifs officer your sub register office everybody covered correct yes public servant as per section 21 of the Indian penal code so all these people are covered public servants covered under that particular section any editor of a registered newspaper correspondent cartoonist cartoonist was added in 1976 people used to blindly follow cartoonists right RK lakshman and all that if you have seen their their cartoons are so relevant even today so that time there was no entertainment so newspaper when they see the cartoons they used to get you know influenced whatever their thoughts are yes that's why cartoonist editor columnist owner publisher everyone so money given by a foreign source or in contribution to a registered newspaper not a load because that time Russian government held all the various newspapers they only controlled so to Pro no to stop all those things over there so many changes whether judges and government servants is ifs IPS there are other things in public servant here that is your sub register office election officer all that is covered under public servant whereas government servant is what IIs ifs IPS IRS all these governments are went government employee of a corporation Hindustan Aeronautics limited employee is a government employee of a government corporation bhel all these people right so these people you cannot give member of legislative assembly political party or office Bearer political Affiliates RSS vxp bajrang well all these things or anything that is TV or radio owner of a TV station the main producer of a TV station radio station all these not covered I mean basically they are covered if these people accept gone prohibited so again what is prohibited guys this entire thing or this entire thing this one we saw no this foreign contribution which is done by a foreign Source given to these people only is prohibited you and I can we take yes only given to these people is prohibited that's all now they give it to me I give it a political party then now they have taken the final benefit is them only so prohibited or what yes that is what we have to see that is this that's why they have added this that's why they have added this so I tell my auntie my friend will come and give you something you please get it for me so my friend does a foreign Source she will give something to my auntie auntie is an Indian citizen is Auntie a foreign Source no or ultimately where it came from foreign source so my auntie comes to Bangalore airport and I am there standing behind me 10 bikes are there with all various flags and all carrying so she gives that money or whatever to me she knows for sure that I'm gonna use that whatever she has got for a political purpose so is that foreign contribution hundred percent yes that's what they have clarified here person resident in India mean and citizen of India accident outside India my auntie shall not accept any foreign contribution on behalf of any political party or from any prohibited person who is this private person one more list any person who brings disharmony to the country Zakir Naik is giving that to my auntie right then that is what it is then person resident in India or citizen of India resident outside India shall not deliver any currency whether Indian or foreign which has been accepted from foreign if he knows or reasonable cost to believe that such person is likely to deliver such currency to political party so my auntie and she's giving the thing if she comes to know that this is hundred percent going there immediately she has to report otherwise she will also be liable so ultimately only to these people and end user she may be giving it to me but if I give it a political party yes very difficult to track but no choice now government also has made an amendment where they say they can only declare who are the organizations of political nature so they have to check the Moa in the Moa or the bylaws if there's any trade unions objective input activities for promoting political goals any voluntary action group with objectives or political nature abvb front or mass organizations like students union workers union youth forums correct then your Congress youth Wing whatever it is all these things are political affiliations Romancing of a political party then these are all inserted recently the form loss against that people were fighting right you know couple of years ago one year ago so that the company government and them again in this under this because their organization of farmers workers students youth based on caste Community religion language or otherwise they are not directly aligned to any political party but the objectives are the activities which they are doing with material evidence includes advancement of political interest so they said that the firm farmers were you know fighting for their rights under the farm loss so they are political party so rather they have avoid political objectives is what they had claimed any organization and again or what are nagras here in our fellow hero I mean one for people who have come from outside there's one guy what are nagraj right so on top and glasses right sometimes when I don't get sleep at night three o'clock I'll be searching what are numbers without glasses right and I'll be I will not get I didn't get even one picture till today what are numbers without Trophy and glasses that fellow Will Be always doing what one then Karnataka one are these also political affiliations yes that's also they are given any organization by whatever name called which habitually engages itself or employs common methods of political action like this will be uploaded super you should watch it superb it will be yeah in support of public causes in support of public causes will be obviously uh part of that so these are all new additions actually then central government will give notice to our organizations they will have to reply within 30 days as to why it should not be considered as political purpose final order is made within 120 days from the rate of issue of notice with reasons recorded can only extend by 60 days so when during that form this thing they had sent a notice to these firm associations telling that tell me why I should believe that you are actually genuinely supporting I mean genuinely against a formula farm bill and not through some other political means is what they are told no persons to whom Section 3 shall not apply means the same fellows candidate election public servant registered newspaper judge member of legislature ETC number 22 question candidate for election got money from his brother something like that they had us got money from his brother from outside the country brother is citizen of foreign country what do you think brother is relative that's what say here from Miss relative if receipt is more than now this has changed guys important it has become 10 lakh per annum this will come from May 23 onwards one lakh has become 10 lakh file form fc1 within three months this one lakh has become 10 lakhs per annum don't see suggested answers now it is 10 lakhs the reset is more than 10 lakh for a atom form file the form Epsilon within three months 30 days was there now it is three months so I press it is more than 10 lakh per annum file form fc1 within three months so within I mean up to 10 lakh no problem it is more than 10 lakh I need to find I don't file then it is deemed to be violation salary wages or other remuneration from any support in Source the person what do you say a government servant is also there no government servant Forest officer he sent to Sri Lanka and they are telling please study everything there the entire how ecosystem works because in Sri Lanka there is a very famous already said leopard Sanctuary so go to that leopard Century study the habitat come and replicate at your own reputation there you'll be getting salary now he's getting salary there foreign Source Sri Lankan government is paying him what do you think not a foreign course of business transacted in India payment in course of international trade or Commerce this politician is an exporter is an exporter so he's doing export dealings ordinary course of business no Problem as an agent of foreign Source gift or presentation made to him as member of an Indian delegation so they have gone there they've given him some gift trophy Etc no problem by way of remittance received in the ordinary course of business Through official Channel under FEMA basically that any you can take any money it is through FEMA ordinary course of business export import all that you can do because it should be FEMA regulation then by way of any scholarships type and or any payment correct institutional if it was you go abroad and do over Institute does go abroad and do article ships stipend will get in dollars yes so all those things anyway that is a relevant example because you are not part of these people and a public servant and all those things you are a servant not public servant YES scholarship stipend or any payment next ah that is done guys that's all so foreign contribution to this section number three and the section 3 prohibited now we have to talk about foreign Hospitality what about foreign Hospitality given to what you say oh public servants or it is given to government so it's the same almost same people are covered here also check it out restriction on acceptance of foreign Hospitality it is restrictions on foreign Hospitality so if you see section 6 section 6 speaks about the restrictions on foreign hospitalities I'll just show you that one second so this is again so all these people are covered here no member of legislature judge so if you see here guys public servant is not there public surround is added for what yeah so do not get confused it is Section 3 only public servant is added here whereas section 6 if you see public servant is not a small small points generally we miss out that's why I'm saying is he there public servant is not there in the bear act I'm showing check it out so what I'm trying to can confuse you public servant the foreign hospitality can you take yeah no problem right so it is these people only member of legislature office bearer of political parties judges government servant employees of Corporation my Dad's friend taking foreign Hospitality no problem not covered under fcra these people it's not prohibited it is restricted mind you foreign contribution to people current under Section 3 prohibited foreign contribution to other than people in Section 3 it is restricted allowed but restricted for example ngos ngos are they judges no ngos can take money but restricted what should you do registration right I hope you understanding the structure so if it is these fellows not allowed but if it's other than these fellows take registration one rupee also if you take registration you take foreign Hospitality normal other fellows you do whatever you want these people not prohibited but restricted that this government servant all these people now whose permission you should take Amit Shah's permission yes you should go to who Ministry of Home affairs so Ministry of Home Affairs you have to take the permission prior from here only following categories of people require prior approval from Ministry of Home Affairs before accepting foreign Hospitality Ministry of Home Affairs undoubtedly right so let's say one member of legislature Lalu Prasad yadav he has gone outside India heart attack happens right so yes so medic that's an exception medical emergency allowed correct Emergency Medical Aid that is a lot buyer approval not needed that prior concept it's not needed but I will intimate the CG within one month with the receipt and approx value whatever how much I spend how much others spent on you you should tell that is assuming you didn't pay for it if some foreign government paid for you you have to intimate but no intimation if it is less than 1 lakh this is only in case of emergency medical Aid so in all other cases you need to take the permission of these people so yeah which one which one this one 60 days so now rule says 60 this says 13. so what will follow guys what will you follow this says within one month rule says 60 days what will you follow act act will override the rules I have to override the rules rules are always within the ACT yeah there was that confusion now I remember I removed it also from the material yes because that will override the rules no permission needed for below people that is first where the entire expansion of the proposed form is met by the central government or state government is going abroad he'll call motavai I'm going no not needed why an entire expenditure is borne by central government only no need to tell where proposed form is it being undertaken by a person in his personal capacity if he is going on a personal trip with his own personal money a government servant no problem where the foreign hospitality is being provided by an Indian national living in a foreign country or character Indian national giving foreign Hospitality no problem so if you a judge goes abroad and lives with his children no problem so everything you cannot say it is prohibited they'll give you know accommodation everything free no problem cases involving acceptance of assignment on salary fee remediation no problem cases involving visits undertaken by members of Indian parliamentary delegation under bilateral Exchange that and also bilateral agreement between government of India and government of the country concerned approved by Ministry of Finance Long Term short-term foreign training courses all our ministers had gone abroad from Karnataka to study the you know transport mechanism in Europe and all they had gone those fellows came back they asked what did you learn Disneyland was very nice right I really told on TV Shameless fellows so they had gone to actually understand to learn how the entire transport mechanism works and all that so all these foreign training courses Etc yes you can go no problem now I told you foreign contribution too other than fellows covered under Section 3 is what a load but restricted in what way take registration that is section 7 registration got into this section person who's registered and granted certificate or is obtained prior permission under the act and receives any foreign contribution so either you should take a certificate or if it's a one-time thing prior permission and receives any foreign contribution shall not transfer such foreign contribution to any other person earlier it was allowed so don't get confused earlier it was allowed now it is not allowed fcra Amendment act 2020 not at all allowed earlier they said if your alliance Club you want to transfer to Rotary Club you can if Rotary Club also takes permission no no permission will be given part you cannot transfer at any cost enter section only changed then now they will ask others type of questions anything they can come guys only this much is there easy so study everything and go six marks in your pocket restriction to utilize foreign contribution for administrative purposes now that money that I get an NGO get one lakh dollars what all I can use it for can they use it to buy shares no can they use it to keep it in a fixed deposit can they use it to buy risk-free government bonds yeah yes so if you see here that money cannot be used for speculative business any activity or investment rather than element of risk of appreciation or depletion of the original investment and they give it to ca student no circulative business yeah right appreciation or depreciation of the original investment linked to Market forces yeah including investment in mutual fund or in shares not allowed participation in scam sorry scheme that promises High returns like investment in chits or land chip fund business land and all not allowed that's what you are but a debt free debt-based secure investment shall not be read as speculative investment you can invest in debt securities and as I told you not spend amount exceeding 20 percent for administrative expenses but if it exceeds 20 percent prior approval of CG but exceeds 20 percent prior approval of CG up to 20 no approval Beyond 20 prior approval so up to 20 percent no approval you guys have sat for like nine hours guys awesome we're more than nine I think super energy awesome awesome brilliant hundred percent will pass yes yes hundred percent one hundred percent undoubtedly so much concentration is very difficult for me no tension it's been more than 10 years 12 hours and all properly 12 13 hours no tension but you guys to sit difficult if it exceeds twenty percent then it is prior approval of the CG yes yes living living over almost almost there prior approval of the CG more than 20 percent prior approval of the CG is needed now they can ask you a problem which they have never asked in the exam it is there in one of my mock exams one question that asked whereby they'll say what is Administrative expenses salary and all those things now you have a school NGO is running a school they are giving salary to the teachers your administrative expenses so there are let's say one lakh dollars there or 100 000 is the donation they are giving 500 salary to teachers ideally it is admin but specifically excluded so you are not to be counted as admin expenses that's what they can give us some on this just to play with you so the at expenditure incurred on sale do or remuneration of personal engage in training or for collection or analysis of field data primarily engaged in research or training so this is what one of this again all these practical things now if you read like that you will not understand that's why you should travel a lot you'll meet people who will teach you this connecting that to this is you know our uh what is a whatever our skill but you they will teach when I have gone to go off all the places to Goa had gone and then morning I woke up it was you know boring so I thought let me go for a Goa walking tour so I booked the walking door in Middle pan gym they will take you one fellow also had come he was traveling I said what do you do he's like he goes to each of these villages in villages government hospital will be there where people will be you know come and doctors will be taking care of the patients their people who look after the patient the relatives he said imagine this was a Harvard fellow who has same fcr unit Harvard person from USA has invested in India in this NGO they are doing this so they go to this caretakers because if the person is discharged even post discharge care is most important otherwise the person dies the mortality rate of in in India of post discharge care is almost 60 percent because in villages people don't take care they feel the moment they are coming out of the hospital you are fine so this person the Harvard guy through Indians are training those other people you know the relatives because the relatives don't know what questions to ask the doctor and doctor is busy so through various drama skit and normal basic you know what do you say using very very simple language they're training them and that fellow was getting 70 000 rupees per month salary now tell me that salary is collecting all the data going that salary admin expense or not no that's what it says salaries or admiration of personal language and training or for collection of analysis of field data in engage in the research or training he was doing this research so he has traveled the length and breadth of the country he was predominantly from Chennai but yeah his family was in Chennai but he was traveled across in all Villages he's lived in a normal peace and all these little tree houses so he has gone to each of these you know places so that I met that guy there he was telling then of course salary to doctors salary to teachers Etc all these things yes so during this covered it became very difficult to get money into India one of my friends wanted to he was in stinking Rich fellow he wanted to get money into India because he wanted to convert one of the dilapidated you know wedding convention hall into a hospital he said let me apply SBI account opening took three months by then half the people died here right SBI opening they're not opening the account only right horrible so it was very bad scenario that time so then he was telling that I want to invest in these doctors Etc give the money to them so that they can spend there no 20 guys full you can spend no problem then salary is to teachers of school Etc all these cases what are admission expenses other salaries wages telephone expenses normal normal other people manager someone will do that those things electricity water charges all these things travel expenses at accounting that is your accountant salary and all these things vehicle filing the reports legal charges rent all these should be maximum 20 more than 20 prior approval of CG so they can give you a problem where they'll mix you mix this and they'll mix this and then you need to compute then it so happens that when you remove these people it will be less than 20. so you have to write the answer then they'll ask you a question what if it is more than 20 then never asked in the exam these are the other type of questions that can come is what I am saying next uh you know hour of central government to prohibit in certain cases as I told you here there is on dialogue prohibited people who are those prohibited people these are the prohibited people that is anybody who affect the sovereignty and integrity of the country correct anybody who is like for example any terrorist recently you saw a dangerous person has entered India have you seen that news a dangerous person has entered India through Nepal so then government cotton a Ministry of home office cotton so that dangerous person is there to obviously create some have occur terrorist activity so yes public interest so anything acceptance of foreign contribution so for instance in pmla I was talking about it that's that that's why I want to show it here so my friend's best friend I all happened to me only that's the awesome part I know all these people because of them so my friend's best friend was a doctor in Ms ramayan hospital this fellow Doctors Hospital I have also met him once right doctor and Ms Swami Hospital one of the best ever you know uh post graduate he was doing his PG post graduate after mbbs one of the best ever very very soft spoken and my friends really very very good friend they have you know spent almost like weeks and months together because they're working together right suddenly one day you know the anti-terrorist squad comes and takes him later they come as far as from Isis trained in Isis correct true story Bangalore Doctor Abdul Rahman National investigative agency to Kim links with Isis this fellow was developing an app for Isis terrorists across the world whenever any Isis terrorist is injured he will send a link on that you know app it's a encrypted app location will come so the doctors can reach he was building it in Bangalore here only it is by the way yeah three kilometers right so he was built crazy guys my friend went into depression he was investigated for some three months not joking why how is your best friend how Biryani and all you were eating he didn't tell anything he didn't tell anything about this thing also even once crazy it's shocking guys it was he was really shocked he said I cannot imagine that this guy was a terrorist now tell me he was getting money from abroad he spent three months in Isis also he's an actual terrorist and very very soft spoken people could not believe it right so if you see what I'm trying to tell is that is these are the people who will do what impact the sovereignty and integrity of the country Freedom or fairness of any election any your witness tampering your you know evm pampering and all those things who will hamper the friendly relationship between friend foreign States Harmony between religious racial social linguistic Regional group this is what that guy Zakir Naik that is called sedition telling anything against the country or any religion in the country that is called sedition I will prohibit these people and you have to obtain prior permission before accepting any foreign hospitalities what they have told these are privated people prohibited people they have to furnish information and all those things so yes where the central government is satisfied that after making such inquiry person has in his custody any article currency Etc it may deliver an order in writing saying that the order will be sent via registered post speed post or a fixing on the outer door this also can be McQ question how will they prohibit if you come to know that somebody is paying somebody and you come to know that tomorrow this is going to happen I can send an order via registered post acknowledgment due means what they'll send on acknowledgment or to sign on it speed post to last known address third one affixing on the outer door and it should be witnessed by at least two persons on the outer door they'll say this is going to happen tomorrow please do not do it we have information they can ask the question the order will be sent by the following except Courier will be fourth option Courier is what you should choose so anything they can ask guys we'd be careful last part registration has to be done uh this is this is all normal forms fc3a3b registration under fc3a with along with an affidavit prior permission I told you if Rotary Club is getting money they should either take prior registration or prior permission otherwise not allowed and they will central government also make make an inquiry they have reason to believe that this person is not following the provisions properly and this is the thing what will you do they will say you will not utilize the unneutilized foreign contribution or you will not receive the remaining part for how long without my approval you cannot do it until I approve you cannot touch that unneutilized amount is what they say can a private limited company or partnership firm get registration on prior permission yes anybody can get whether an individual or HF can get yes person includes everybody whether organization under Central or state governments are required to obtain registration yes they have to then this was asked for four marks who what are the conditions to be met for Grant of registration same when the person is applying should not be fictitious person should not be benoni should not be prosecuted or convicted for indulging in conversion activities should not be prosecuted for creating communal tension or disharmony propagation of sedition see against the country you cannot speak all these things and it is not likely to affect same dialogue sovereignty and integrity security public interest freedom of fairness election friendly relation Harmony same what is the procedure for granting registration you should give it to a open an fcra account under Section 17 without fail where in noodling scg will grant an account you have to open will grant a certificate within 90 days the certificate will be valid for five years is what they say if the value of the deposit obtaining prior permission is one crore or more rupees one crore not dollars CG will permit reset in installments because one crore is coming they'll say okay I'll allow it in installments now the second this is one in new provision not asked in the exam let's do it a little slow basically how many years you will get five years second part I will they will ask me how much money is coming I'll say Sir Three crores is coming sir three crore INR not dollar okay will government say no to it no but for three crore let me allow installments first add allow one crore let's see what you will do with it I will track it once it receives one crore this institution should spend minimum 75 percent for the purpose for which it is coming in once you prove it to me then allow the other installment this question has not come right so how much one crore that's second and subsequent installment shall be released only after submission of proof of utilization of 75 percent of the foreign contribution as shared in the previous installment and after field inquiry of the utilization and along with that I will take your citizens of India other number for others passport or oci card passport or oci card now this question has not come as I told you anytime it can come couple of things suspension cancellation surrender and renewal this also is an important exam question but before that if you see there is one more Amendment here can I change the can I make a revision application under Section 32 yes there is one more new added for May 23. any order passed by central government what order it can be a cancellation order it can be a registration cancellation order suspension order can I obviously go for a revision petition yes the central government May either on its own motion or application call for an examine record of any proceeding any order that they have passed and they can revise that order now this section has never been asked in the exam they have given it in the Amendments new appoint revision of order an application for revision of order passed by the competent Authority in the 32 shall be made to whom secretary Ministry of Home Affairs government of India so if you want revision of order who will you apply apply to secretary Ministry of Home affairs so who is eligible to submit division application a person who is registered under fcra can go for revision application how can an association file an application for a vision it will be made to secretary Ministry of Home Affairs can revision application be sent through physical mode no from 15th August 2022 only electronic mode what is the procedure yes this this is like very very theoretical and very what do you say go to that particular website and do it yes you have to go to this particular website under the head or Services Under fcra subheading revision application you need to do it is there need to send physical copy no what is the format scan copy and proper justification fee is 3000 what is the time limit for making application of revision this can be asked in the exam McQ how many years one year from the date on which order in question was communicated or date on which otherwise come to know of it whichever is earlier So within how many years can I make the application one year this can come in the McQ from which so you will pass the suspension order to me I receive it from the date of receipt one year either where it was communicated to me or on which it otherwise I came to know about it I should do it that's it these are some of the points last part last part is this cancellation suspension surrender so this also they have asked guys what are the grounds of cancellation how can I cancel your certificate when can I can how can I cancel yeah false or incorrect statement the violated the terms and conditions for example I told you to spend 75 percent you didn't spend so I'll cancel it but before cancel I print more than 20 percent your spend administrative yes and you have not taken my permission then it is against public interest control in the provisions of the act and you have told me that you will do it you will spend it but since last two years you have not spent on anything it is simply lying there in the account you have not spent at all before cancellation however I will suspend cancellation is the last part before cancellation I am going to suspend your license for how many days 180 days suspension is 180 days plus further period of how many days 180 days fcra Amendment Act 2020. I will follow principles of natural Justice and finally foreign contribution basically when I suspend no new foreign contribution if I want one rupee also I have approval of cgo to take or if I have already utilizing already have let's say I have more one one crore is coming take prior Polo CG One Core is already there lying inside can I use it I can use only 25 percent that two of the prior approval remaining 75 percent only after revocation of suspension until then it is frozen these are small small things which they have not asked which they can like only vaguely they have asked they can ask that again 25 percent of the prior approval 75 after revocation last part decide cancellation cancellation what is it cooling period of three years so if you cancel for three years you cannot apply again cooling period of three years cannot apply surrender of certificate again a request made by may be made to the central government for surrender of certificate in form number fc7 surrender this is voluntary you will feel that you are not doing Justice to this entire thing whatever you took so you'll surrender the certificate under this central government shall make inquiry as it deems fit and satisfy itself that person has not contrave any of the provisions of the ACT thereafter the central government May permit any person to surrender the certificate renewable can I renew your if it is not canceled or suspended I can renew six months before the expiry each it is valid for five years so four and a half years I can go and uh renew it but I have to submit an affidavit and all those things normal then before renewing they will check all those things whatever we discuss that is should not be against the sovereignty and all those Provisions that's about it then apart from that yeah the central government shall renew the certificate ordinarily within 90 days from the date of receipt of renewal that is what they will do apart from that the certificate of registration was granted to an NGO on 1st January 2014 a request for Renewal was received by the central government on 30th June 2018. the request was not accompanied by the renewal fee comment on the validity so what will they do although the application was made it was not accompanied by renewal fee hence it will be lapsed when on the day or five years are over it will be lapsed you should make a fresh application basically four years four and a half years before four and a half years when you touch four and a half years you can go for Renewal and even this as already discussed it should be opened in State Bank of India New Delhi you may open One account but you can transfer to any accounts of your choice later and SBI New Delhi will keep on reporting within 48 Hours of every transaction every dollar coming in they will report no funds other than the foreign funds should come there that is the thing last part intimation of foreign contribution by the recipient yes if you receive foreign contribution any recipient you should submit fc4 number 22 this is only had come you received from a relative so for that is fc1 if you leave some normal other contribution you receive NGO then they have to do under this every person who receives foreign contribution under the actual submit fc4 so first of all SBI will be reporting here also should report these two should match that matching will be done by the agencies so it's very very strict and then if the foreign contribution relates to only articles or Securities intimation shall be submitted in form number fc1 every report will be certified see here also you can make money certified by chartered accountant a lot of you know here things also you can certify but go but this only you can do your Juniors cannot do because I see as remote law right yeah every report submit because if you don't know all these things what will certify think about it so they are you know shooting themselves in the foot very very foolish decision so every report submitted certified by child accounting you have to troll wherever possible the accounting shall be preserved this is an McQ question accounting shall be preserved by the person for a period of six years six years only eight years they'll give First Option known choose eight six a nil report shall be furnished even if no foreign contribution is received but here in this case Surya certificate is not needed because it's nil no money is received but one dollar if it comes in CA certificate is a must audit will be done by general or special order they will do the needful then intimation by candidate for election this is also they asked in the number exam every candidate for election who has received any foreign contribution at any time within 180 days immediately preceding the date on which is nominated shall intimate in fc1 this was November 22 question paper same to be filed within 45 days from the date on which is nominated as a candidate for election some similar question had come May or number one of the two adjudication and appeal finally if the court will confiscate if the if it is up to 10 lakhs minimum rank assist 10 sessions that generally can do so there is any limit then Court will do it order response by Court of session appeal can be made to the high court any other officer you can make it to the court of session that is The Sessions Court offense and penalties good luck that is the thing last part compounding offenses all these things are fine guys this is okay all this and uh will the ACT apply to government of India transactions no obviously no it will not act at all as such will fcra override FEMA like that they had never asked this question but if they ask like that they'll give fcr and FEMA and say what will override what so you should write this provisions of this act shall be in addition to and not in derogation of it will never override it is side by side correct it will go hand in hand Biryani if you are eating that raita Etc that is fcr right it will not override it correct it will not override so the provisions of any other law for the time being in force is what they say so these are all the overall are done yeah these are all the you are studying now I mean this is just some you can close your books and all because what I want to tell is one dirty habit all of us have guys this habit is what you know asking my friend Mata how much you studied correct especially in the last next two months it will happen how much you studied then that fellow Will says for me law is already over revision over for you vision is only not happening the problem is each of us is different is you know has capacity in different loss different subjects please do not compare next two months please do not compare with your friends this guy is what Virat Kohli no this guy is called Hokkaido zimomi he's a nagaland player player of nagaland he actually played for Kolkata Knight Riders but he only was a ball boy and he got bottles of water Etc but in his village they were all waiting for the break to happen why because they wanted to see their childhood either their hero this guy a 22 year old kid is the is actually revered as a God in his village honestly speaking nobody knows about Virat Kohli Virat Kohli once had posted a picture he had gone trekking with Anushka Sharma no one knew knew him there he had gone to Northeast of India nobody recognized him so he said for the first time in my life I went in India somewhere and nobody recognized me it felt so nice right so if you see here Hokkaido zimomi if Hokkaido jimomome goes anywhere in the northeast of the country he is actually a God so the thing is he's not Virat Kohli he can never be Virat Kohli what I am trying to tell is problem is we think otherwise maybe Virat Kohli but we can be okay to zimomi I am also a player you are also a player ultimately guys 400 out of 800 also is a CA 600 out of 800 is also a CA so I just want to take some 10 minutes can I take if you say no also I'll take yeah so because it's important please do not compare to a dirty habit we sit and compare with our friends how much you studied you are different you are good in some subjects he is good in some subjects do not even think about studies you just discuss other things after exams where you will go all those things you can discuss but definitely not this dirtiest habit and then of course we know this uh you can read this clearly according to research at Cambridge University really doesn't matter in what orders the letter in the word are only important thing is first and last letter all other letters can be a mess because human brain recognizes the first and the last so actually the first letter is what is important that is CA Foundation last letter is CA clearing CN getting those two letters before our name beginning and the end is what matters in between no one gives a damn so if you come if you go to your friend and say I could not clear CA because of girlfriend problem boyfriend problem financial problem they'll all listen to you and say okay I'm very sorry you could not clear the moment you turn around and go I'll extrapolate for only excuses on the other hand if you say that despite in part of all the problems still life clear today you know then of course Akshay Kumar will come and make a movie on you all right so if you see that's what it is so beginning and end and you've already died you have been dying for so many years or already did nothing left actually so remaining that two letters just that guys after that your life is settled to be very honest I am not saying your life is settled in the sense that you will be chilling no way till today I work 16 hours a day it's awesome but tomorrow if I want to write an exam there is no what do you say I don't have to write only because I've already passed correct the thing is if you and I write an exam today I will still pass he will not pass even though you have more knowledge in other subjects because of the one factor tension correct you are sitting in class today ticking I was seeing when I told you is important some people started opening your you know your highlighter and started marking all these things but if you listen to a class without this uh burden of the exam you will actually understand more so the thing is it's all about the burden and CA is just the beginning of a wonderful chapter honestly you will still work hard you will still slog it out but there is no pressure and the Financial Freedom that you get is amazing you can try whatever you want even if you fail at the end of the day you can get a normal job anywhere with 60 70 000 rupees salary no problem so you're almost there I know you will pass but then sometimes it so happens that we end up flunking it's fine and nobody will ask you the number of items to be very honest unless you want to join some top 10 companies in India initially you will not get in because you should be a rank holder in fact even if the first 10 ranks are only taken others are not even considered there are some companies which do like that apart from that what really matters is the knowledge so begin you already begun you've already ended nobody will ask your number of attempts to be till today nobody asked me has asked me my marks nobody has asked me the number of attempts it is just that once you clear that get that two letters before your name that's it life is settled and of course all your parents your loved ones will be extremely happy because till that day only they are all dying we always you know learn actually we are not doing they are not doing CA but it feels like they are also doing CA we just have to write exam they have to do your entire life revolves around their entire lives revolves around you you told this fellow is in Bangalore I will go to Bangalore like those of you have come from other places also I have come thank you so much you would have told this fellow is taking in Bangalore I'll go your parents have completely changed their entire timetable and everything for you today morning if you come at 8 30 I change the timings to 8 30. so probably your loved ones probably should have would have gotten up by six now because of me they have got up at six right so basically what I'm trying to tell is it's all about you know giving back to them so I am a nature Enthusiast and definitely we can learn from Mother Nature so quick point us quickly so at the beginning of studies when I'm doing now there is apprehension anxiety curiosity especially before the classes maybe for the revision session there will be a new dawn a new beginning and you're all uh you know bubbling with energy initially first day now I am seeing your face yeah but now we are ready to fly but thankfully I'll have one coffee headache is there I'll go home you'll be thinking we are determined to make a mark like this tiger and uh determine to shine as well in our life but of course all we need to do is uh be vibrant like this peacock always be pleasing like these uh bunch of trees but firmly grounded because ultimately we should be humble guys however much however we fly our future always be on the ground like this joke Falls even if we fall down we will fall down many times we have already fallen down you should do it with Grace because ultimately we should obviously obviously get back up so I am a nature Enthusiast and also dope diable little bit of Photography that's why all these pictures I've taken and along with my dad my dad is obviously thousand times better than me in photography yes so if you see and keeps keep our you know ideas of float like this and obviously we have to take that giant leap wherever we go and it's not about being serious as CA final students please don't be serious but of course we need to take some time off right and also soak up the sun whenever playfully fight with our friends which I'm sure we do toss up all our inhibitions and glide through gleefully but obviously we should always need to make sure that after all the tossing after all the fighting all the dancing that we do like this flamingos we need to shake ourselves up because two months are there to go for the exam and remind ourselves of our goal those two letters before our name it's just a simple goal exactly uh if I want to climb Mount Everest what do I need do I need oxygen yes do I need a proper gear yes do I need to climb properly yes do I need strength yes but first we don't understand we need the mountain we need Mount Everest correct so that we don't know so we unders we don't know what is our goal is our goal CA or is our goal something else right don't know it's easy to tell for me I also didn't have a goal even after clearing see I had no clue what to do I swear I had no clue what to do I had no idea what to do but one thing I always enjoyed was teaching so I said okay good I'll let the torture continue so and remind ourselves of our goal and so that we can spread our wings and change our goals like this uh wild ass from runoff Kutch to majestically Triumph like this elephant but of course you all know there's nothing to tell our path will definitely not be easy though it appears to be very colorful it is Laden with what webs of Deceit you won't even know where you will get caught see movie script because though we carefully pick up the nesting material for all our ideas right startup you want to do in Bangalore now we fly down to ensnare our prey but if you see after skimming through in the presence of all these other people around who are all predators like that crocodile there waiting the hope of catching success and sharing it with our loved ones when we finally think that we have got whatever we want see a results.nic.in when you hit that submit button Predators who rest ICI who rest while we work hard suddenly attack us and take it all away that's why we should always be alert of the danger looming close by we can never rest because the danger will always be looming close by because sometimes sometimes people your friends Etc who feel that we feel that they have our back sometimes betrayals happens and bring us down also and at that moment we should think of all other people who will support us all the other monkeys around us right and all our good friends who are our backbones and of course you should fight back with all our might in such a way that the moment we climb down only to climb up obviously to face our aggressors like this and conquer all our fears as well to LEAP to Greater Heights and to blend with the surroundings if you see it's completely camouflaged blending and of course camouflage see there's a leopard here right it is beautiful art of camouflaging natural camouflage effect and charge that people who really deserve it and fight for our rights be completely aggressive wherever needed yet be considerate and compassionate let's base our lives on the Canon of Integrity only then definitely we can walk with pride and confidence and of course at the end of the day guys we can be our own boss even if you are working for somebody else we will work on our terms is what I'm trying to tell I'm not saying when I say Be Our Own Boss start a business no I'm just saying that wherever we are working it is raised on our terms like Dave Forrester I met a guy who was in Deloitte he's already reached the his age 34 and has already reached the director level so he said ice log for almost 10 years till 3am 4 AM and then I decided when I became director that I will not work one day also I will get things done brilliant statement yesterday we have gone to the match correct yesterday I had gone to the match evening I met him I made the friend first time I had never met him before he told I have came to the match on a Monday I said Monday morning how come you're in a match so he said I came because I decided I have slogged enough now I will get things done and my bosses have a problem with me but I have to bring two crows business I bought four crows so they shut their mouth so very good thing that is the concept of being your own boss right so be strong and yet be different correct don't show this picture to Salman Khan go on yeah next be indispensable and what because in the sunset of Our Lives when we look back at like 64 year old Uncle when you are thinking about your life then the good old days we know that some things it will go wrong and sometimes you can smile but all we do is you know sigh rest if we must guys but the next two months should never ever quit even not two months even later also because life will teach us to be audacious and survive Against All Odds it will teach us to find the strength to flow and at least for the sake of our loved ones we should walk with caution and with pride because someday we will mushroom ourselves actually there's nothing there is actually from we will mushroom for sure and I definitely end up being a masterpiece of our own life so we should never fear because as much as life will you know a reprimanders it will teach us also to face the world with our heads held high and wherever we go now will be the center of Attraction like this rantham or this tiger everywhere it goes some dirty Egypt will be following and this was one poem which I had read many times you know you also know this the woods are dark and deep and there are many promises to keep so enough sir I want to sleep no that's what but there is a long way to go before we sleep correct but along the way follow the heart and ultimately in your own way you can rule the world now there are are you first of all emotionally numb yes we are all numb now three days romantically starred yes creatively challenged 100 artistically void yes my drawings look like amoeba even mine socially Outcast yes we don't have any world that we are definitely what CS students correct and life of us here quickly five minutes CPT you are like this CA students qualified only one person will come out governing bodies are very happy ipcc books do you remember guys Dwayne Johnson going to ICA and getting the books like that correct once I went to for CPT I went there with in my scooter ipcc I couldn't fit only I had to get an auto CA final now they are sending earlier we had to go mini truck yes then in accounting class in class question will be solved like this for the faculty and exam in the last like that we know that obviously after account this is the pakka well everybody is arguing whether profit is 2 lakh 50 or 2 lakh 65 I am the only person getting lost 5 lakh that all right 5 35 loss I'll get always and I will I'll only be right actually during registrations here insteaders please come join wonderful course during exams Brock Lesnar costing where are the working notes in the problem in hosting and all if they ask I'll tell sir in the calculator I will not write all those things exemption in costing only if you get yes four kinds of people in that dirty subject called earlier only four there is no other way writing my CA inter exams in May again shares the memory one two years later because you'll be writing the same thing after enter what starts after enter on this is this picture itself articles you all know you've all faced it nothing to explain pictures speak louder than words right so client will get so much money you will throw training we will get this much only these are bank statement two thousand next day two thousand twenty four entries now 2 has become three four five but ultimately it's the same so will they increase the stipend what tense is it in English future impossible things holidays the only holiday we know is what the no new Christmas no New Year only previous year assessment yeah that's all these are Christmas free will decorate sleeping position engineering and sleep like that teacher full straight programmer the ca what sleep you are dying there somewhere No Sleep correct then before behind every successful man there is a woman we know but be behind every successful chartered accountant who there is an article assistant all of us are like that only love life if any do you have any love life so we ask our girlfriend you want to do dinner is that where you're going to take me we'll say Shanti Sagar like are you mad I it's my birthday take me somewhere nice you are a CA student she doesn't know what we are going through so take me somewhere so Shanti Sagar is not this that's all we can afford no that's it next obviously slap all that happened today my GF said tell me about your relatives now I should say their Income Tax Act companies act late is where 2 close 77 no that is the problem now what is one for this you leave then next student uh proposes a girl so the girl says no how can you love me I'm one year older to you so what will you say especially if she's doing say no problem I am your assessment here and you are my previous example and you will take your girlfriend to watch Interstellar movie have you watched the movie Interstellar where the hero is telling that one month on this planet is six years on Earth you will feel okay I should have done my CA here anyway it will take six years one month I would have finished the only GF I know is what gratitude fund that's all it is then your girlfriend wants you just test you if you are actually husband material and just ask you a simple question Osama has five wives and twenty children has one wife but nine children who is better you are a CA what will you say osama's npv is good lalos nrr is better correct that's the problem next she also says I read in the newspaper that the Widow are with nine kids married a widow with seven kids what do you think about it is it good to marry after having so many kids finding love again you said that is not marriage that is amalgamation in the nature of merger right that's how it is then CA final comes syllabus is like that you are like this right other questions are all enjoying we are dying there so some people will ask what are you studying CA first question which college one more question deadly which year what which are every year every year you are studying so three years later also I'll be studying the same thing current situation two months to go for the exam this is how we are during CA final last three days I am seeing I am dying you are laughing for example yes but nothing will happen you'll also smell don't worry so that this is the best part in lower exam everybody using calculator you have no clue why question also they have not given nothing they have gone then you will ask why you are using esthering I was calculating and then I'll get 39 42 that's all so if you ask a CA student is you guys what is happiness first is of course when the valency tallies second is of course sitting on the chair when no one is you know go to the partner you've done it go to the partners here and sat on it yes you should do it if you're not done and no one is in office so heated gold is called ornament B10 copper is called wire compressed carbon is called Diamond but all mixed heated beated and compressed person is called what chartered accountant that is what we want to become how to pass the exam search in Google they say we are also searching Sundar picha also doesn't know CA finals if CPT final obviously will lose air we'll put on weight all that will happen it's fine no problem and then some people obviously after marriage after children the children are like dear ICA please pass my daddy correct then this is actual picture of the ca books this is actually old syllabus new syllabus will not even fit that entire picture there that's how it is it is definitely not easy if you see the actual thing Charter documents are rich leaders best CA course is very tough difficult so it's not easy guys first year in other courses first year you know we are all problem final year deadly in C8 is reverse guys all right CPT full Choice by the time we come to final which Temple will go tomorrow and go to tirupati Temple yes that all happens reverse complete reverse 11 only in CA so five years there are 50 laws 500 lectures 5000 case laws 50 000 sections and almost 5 lakh rules normal person cannot do it rest of us are called what Chartered Accountants we will definitely do it this is a wonderful definition that I have seen definition of a CA student living a few years of your life like most people won't live like whatever you've been living now so that we can spend the rest of our lives like most people can't correct very simple so we money is one thing guys money will come money will go but really the respect that you get is something different of course if you are coupled with knowledge if you have knowledge they'll respect otherwise you're like how did this fellow become CA I didn't become he has become that is what happens but if you have knowledge people would respect you and with respect of course money will come money and all is nothing so we should work so hard that one day our signature will be called what normal signature is normal signature but the normal signature on documents will be called as what audited financial statement so basically last part of the discussion there is a tea bag very important discussion here what does the tea bag do first of all what counts is what is inside and not is what outside so you may be you know fat in whatever you don't care about your appearance now what is inside the stuff that is inside is what matters no one looks at your face anymore leave it you only don't look at your face and what others will look so just concentrate on studies and finish the damn thing off later you can do all these grooming and all that up to you later so what counts is obviously not your appearance but definitely what is inside that matters your stuff that you write is what matters the real flavor actually of a tea bag will come only when it gets you into hot water the next two months obviously is hot water for us the real flavor will obviously come now only then we should look forward to get into hot water only then our flavor will come out because Under Pressure we will definitely not succumb but definitely you will do well all Indians are operate on the principle of rockets actually when our behind is on fire we will fly simple so in the next two months it's gonna be like that only right anyway yes so tea bag must be porous so though you are you know or we are all tea bags we should be porous in the sense that the flavor should come out so we should ensure that we work towards it t wax will work wherever the they are so you may be in a different position now different mental framework but it will always work sometimes it's better to have one more tea bag so you can discuss with your friends at times they are like without you know discussing about the how much you studied and all that at least if you have some doubt in certain areas of course you can ask your friend it's always better but one thing you should always remember that somebody always holds the string in a tea bag can just get thrown out so here in this case ICI we should write all the answers which are acceptable to ICI you can't write your own you know things in the exam please don't write I feel that I think so your thoughts and feelings you should control after you clear the exam then you can let out your thoughts and all those things no problem and it's all about how good the t is and definitely not the tea bag and eventually when tea bags will need to may make way and get out so even I will consider myself as a tea bag so now it is my time to bid goodbye to you guys all the very best first of all it is uh for me there is really no tension because I've been doing this since a long time but for you guys to actually sit for over 20 hours over three days and concentrate for almost six six and a half hours is something which is amazing so first of all adds off to you guys to actually say because YouTube videos you can obviously see that particular topic Etc but I've seen you guys are pushing you're pushing and sitting though your eyes are closing you're like no let me sit I'm seeing I can observe everything here though my focus is here my vision is I have some other Vision here because of these losses right I can see because you though you are obviously you know it is difficult for you to sit is after covet Etc you'll never sit like this maybe you know when I sat down somewhere like this but still you are doing it that shows that Zeal that you want to somehow this attempt be done with it and second important thing that I really like is you have invested three days of your life you know in me you have actually invested see it's not about money it's about investment in time investment is the biggest investment see any way for me I have to record for me there's nothing I had to record because I have to upload on YouTube so whether you are there or not there for me it really doesn't matter but the thing is for you guys to actually invest three days which actually shows a lot because though you have this two end of months three days you have given that is the trust that you have in me I generally don't you know have any ideal worship Etc I do not follow but to me I am not getting all sentimental or putting some dialogue here but for me my student is my God to be very honest because if I like buy a house if I buy a car if I eat two meals a day three meals a day it's only because of you guys right we release the summary book I I told my printer you print some 300 it's okay that fellow says no I'll print thousand in one day 400 watts sold right and now in two weeks thousand got sold so the thing is it is not anything that I did or something it's the blessing that you have given so I always believe that some random student at each of you all of you there's no face to it but a student is a teacher's God to be very honest with you the thing is obviously you have a place that faith in me and they have come you have invested time actually if I charge 50 100 also you would have paid that's not the point but you have invested time time will never come back so 20 plus hours you have invested so I genuinely would want you to not only clear the exam but also minimum how much you want to how much you want 665 plus let's be realistic 65 plus 65 plus is something that I genuinely want you to definitely score because to me you are like my God generally when uh what do you say a buck will go buck means don't take the other meaning yeah the real when he goes to the temple Etc he will see the God here for me it's reverse I am standing on the stage and I am seeing all of you here it's genuine the genuine feeling from my heart guys I'm not I'm not a liar I don't all do all these dialogues and all that but the thing is you guys also have actually spent that time which is incredible for me so thank you so much actually I that time I told you for me it doesn't matter but for me it matters it's easier to record when people are there because I don't concentrate on this at all I tried recording on my own I died nothing went in it's very difficult but with all of you around it's very easy time will just fly I don't realize how time fluence already almost five o'clock every year every day around six end of seven hours of recording so thank you for coming in Bangalore uh you know navigating the traffic so on that note all the best guys so keep in touch don't be strangers and all that keep in touch I may not recognize I'll definitely when I see you I'll recognize your face but somewhere outside when you see some time come and talk don't act like strangers because even I don't realize like that day I was there somebody came and told me I'm from a student from Kerala obviously I've never seen that student right but of course definitely we will talk so keep in touch and I'm 100 sure this is just a means to the end you will definitely clear CA there are larger things waiting for you all the best but please ensure that you clear the exam do not give up at any cost okay they certain maybe you cannot do it's okay next attempt do not give up wonderful course personal experience wonderful course it is you will get that Financial Security which no other course will give you're already there invested four or five years of your life let's say you're getting married now let's say something is happening that's all secondary finish the damn course whatever it takes right you have to finish it because then the Financial Security you get nobody can beat it sir my father is loaded my mother is low it's okay you do it for your own good because the financial security that you get if you earn money that is something different money is not everything but without money you cannot live but apart from that one more extra thing is respect that you will only get if you get those two letters before your name if you are knowledgeable but not a CA you will it will kill you there's no need to die only you're already dead 20 years 30 years later but you're already dead that's a problem you all are knowledgeable but you are not CS you will become CS very soon but the other way around qualification without knowledge that is also very dangerous right on that note thank you so much guys see you all the best bye all the best thank you study well do