Making efforts to resolve differences between ED, corporate affairs ministry: FM Nirmala Sitharaman

FM Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Thursday said she is making efforts to resolve differences between the Corporate Affairs Ministry and Enforcement Directorate over attachment of properties of a company under the insolvency resolution process. The ministry and Enforcement Directorate have locked horns over the issue of attachment of property of Bhushan Power & Steel Ltd (BPSL). While the ED is of the opinion that it can attach the property of BPSL under the Prevention of Money Laundering Act (PMLA), the corporate affairs ministry has been maintaining that ED can not do so as the company is under the insolvency proceedings.

The case is currently being heard by the National Company Law Appellate Tribunal (NCLAT). “On this mater, I had some discussions. I am conscious of the fact that ED does its duty and job, and when it comes to the question of attaching such properties of people who are being pursued under PMLA, some of the company property are also getting attached. “I had a meeting with both revenue secretary and corporate affairs secretary. We are applying our mind on it. Let see how I will resolve it. We recognised that there is an issue,” she told reporters here.

When asked about the delay in cases in the NCLT, she said the ministry is extending its support in terms of more manpower and space. “The real physical difficulties that the two agencies (NCLT and NCLAT) are facing in terms of growing demand for cases are being addressed,” she added. When asked about the government’s decision to merge MTNL and BSNL, she said : “We recognise the role that the BSNL and MTNL and the combined institution has to play in the country’s telecommunication and connectivity”.

The government yesterday approved a Rs 69,000 crore revival package for BSNL and MTNL that includes merging the two loss-making firms, monetising their assets and giving VRS to employees so that the combined entity turns profitable in two years.