The National Company Law Tribunal has ordered to initiate insolvency proceedings against Aviva Life Insurance in a case filed by Apeejay Trust.
A two-member bench of NCLT Delhi comprising Justice R D Khare and Sumita Purkayastha allowed the plea against Aviva Life Insurance and has also appointed an interim resolution professional to run day-to-day affairs of the company.
Apeejay Trust, which had leased its Mumbai-based (Vashi) premise to Aviva Life Insurance, claimed a default of ₹27.67 lakh as an operational creditor for not receiving payments towards service tax and license fee for the premise.
According to the trust, Aviva — a JV between Dabur Invest Corp (Dabur group) and Aviva International Holding Ltd — has not paid license fee, car parking, maintenance/service charge and service tax. It had made its last payment in this regard on October 5, 2017 and from then the debt was lying due.
“Considering the circumstances this tribunal is inclined to admit this petition and initiate CIRP of the corporate debtor. Accordingly this petition is admitted,” The National Company Law Tribunal (NCLT) said.
It has also declared a moratorium under section 14 of the Insolvency and Bankruptcy Code, protecting the company from its lenders during the process.
During the proceedings, Aviva had questioned the maintainability of Appeejay Trust’s plea on the ground that it is an insurance company and thus being a financial service provider, IBC can not be applied against it.
According to it, there is an absolute bar under IBC to initiate any proceedings against insurance companies.
This was rejected by the NCLT saying “the operational creditor does not have any claim in respect of contract of insurance. The claim is with respect to the outstanding license fee and the service tax amount”.
“Hence, the corporate debtor can not use the provision of … IBC as a blanket cover to claim exclusion from IBC proceedings on the ground that it is an financial service provider,” said the NCLT in its order dated November 4, 2019.
My recommendation to all my friends to quit from AVIVA LIFE INSURANCE on priority. This is personal view, As money security is very important.
Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a Pension Scheme announced by the Government of India exclusively for the senior citizens aged 60 years and above which is available from 4th May, 2017 to 31st March, 2020.
Benefits of the scheme
Following are the major benefits under the Pradhan Mantri Vaya Vandana Yojana (PMVVY):
Scheme provides an assured return of 8% p.a. payable monthly (equivalent to 8.30% p.a. effective) for 10 years.
Pension is payable at the end of each period, during the policy term of 10 years, as per the frequency of monthly/ quarterly/ half-yearly/ yearly as chosen by the pensioner at the time of purchase.
The scheme is exempted from Service Tax/ GST.
On survival of the pensioner to the end of the policy term of 10 years, Purchase price along with final pension installment shall be payable.
Loan upto 75% of Purchase Price shall be allowed after 3 policy years (to meet the liquidity needs). Loan interest shall be recovered from the pension installments and loan to be recovered from claim proceeds.
The scheme also allows for premature exit for the treatment of any critical/ terminal illness of self or spouse. On such premature exit, 98% of the Purchase Price shall be refunded.
On death of the pensioner during the policy term of 10 years, the Purchase Price shall be paid to the beneficiary.
The ceiling of maximum pension is for a family as a whole, the family will comprise of pensioner, his/her spouse and dependants.
The shortfall owing to the difference between the interest guaranteed and the actual interest earned and the expenses relating to administration shall be subsidized by the Government of India and reimbursed to the Corporation.
Eligibility Conditions and Other Restrictions
Minimum Entry Age: 60 years (completed)
Maximum Entry Age: No limit
Policy Term : 10 years
Investment limit : Rs 15 lakh per senior citizen
Minimum Pension: Rs. 1,000/- per month Rs. 3,000/- per quarter Rs.6,000/- per half-year Rs.12,000/- per year
Maximum Pension: Rs. 10,000/- per month Rs. 30,000/- per quarter Rs. 60,000/- per half-year Rs. 1,20,000/- per year
Ceiling of maximum pension is for a family as a whole i.e. total amount of pension under all the policies allowed to a family under this plan shall not exceed the maximum pension limit. The family for this purpose will comprise of pensioner, his/her spouse and dependents.
The Scheme can be purchased offline through Life Insurance Corporation (LIC) of India which has been given the sole privilege to operate this Scheme. To Buy you can call us @ 9891423442, 9990190909 or whatsapps on same numbers.
Payment of Purchase Price
The scheme can be purchased by payment of a lump sum Purchase Price. The pensioner has an option to choose either the amount of pension or the Purchase Price. The minimum and maximum Purchase Price under different modes of pension will be as under:
Mode of Pension
Minimum Purchase Price
Maximum Purchase Price
Yearly
Rs. 1,44,578/-
Rs. 7,22,892/-
Half-yearly
Rs. 1,47,601/-
Rs. 7,38,007/-
Quarterly
Rs. 1,49,068/-
Rs. 7,45,342/-
Monthly
Rs. 1,50,000/-
Rs. 7,50,000/-
Mode of pension payment
The modes of pension payment are monthly, quarterly, half-yearly & yearly. The pension payment shall be through NEFT or Aadhaar Enabled Payment System.
The first instalment of pension shall be paid after 1 year, 6 months, 3 months or 1 month from the date of purchase of the same depending on the mode of pension payment i.e. yearly, half-yearly, quarterly or monthly respectively.
Surrender Value
The scheme allows premature exit during the policy term under exceptional circumstances like the Pensioner requiring money for the treatment of any critical/terminal illness of self or spouse. The Surrender Value payable in such cases shall be 98% of Purchase Price.
Loan
Loan facility is available after completion of 3 policy years. The maximum loan that can be granted shall be 75% of the Purchase Price.
The rate of interest to be charged for loan amount shall be determined at periodic intervals. For the loan sanctioned in Financial Year 2016-17, the applicable interest rate is 10% p.a. payable half-yearly for the entire term of the loan.
Loan interest will be recovered from pension amount payable under the policy. The Loan interest will accrue as per the frequency of pension payment under the policy and it will be due on the due date of pension. However, the loan outstanding shall be recovered from the claim proceeds at the time of exit.
Free Look period
If a policyholder is not satisfied with the “Terms and Conditions” of the policy, he/she may return the policy to the Corporation within 15 days (30 days if this policy is purchased online) from the date of receipt of the policy stating the reason of objections.
The amount to be refunded within free look period shall be the Purchase Price deposited by the policyholder after deducting the charges for Stamp duty and pension paid, if any.
Exclusion
Suicide: There shall be no exclusion on count of suicide and full Purchase Price shall be payable
GST Council– Providing a big relief to small mutual fund distributors, the GST council, headed by Finance Minister Arun Jaitley, has deferred the implementation of reverse charge mechanism (RCM) by another one year to September 2019.
Reverse charge is a mechanism where the recipient of the goods and/or services is liable to pay GST instead of the supplier. This is an anti-tax-evasion measure to ensure that transactions by unregistered people don’t escape tax. So, in a normal transaction, the supplier of goods or service charges the tax and pays to the government, but in this case, the responsibility reverses and falls on the buyer.
Also, the purpose of this charge is to increase tax compliance and tax revenues. Earlier, the government was unable to collect service tax from various unorganised sectors like goods transport. Compliances and tax collections will, therefore, be increased through reverse charge mechanism.
This move will benefit mutual fund distributors that have earnings of less than Rs 20 lakh a year, particularly for distributors who do not have a GST registration number or have surrendered their GST registration number.
This move will benefit mutual fund distributors that have earnings of less than Rs 20 lakh a year, particularly for distributors who do not have a GST registration number or have surrendered their GST registration number.
Out of total 46,000 MF distributors in India, only 6 percent earn above Rs 20 lakh a year.
Registered distributors are liable to pay GST on their services to the asset management companies for which they can claim input tax credit. As most of them work from small offices with computers as their only equipment, the likelihood of significant input supplies to avail credit is low.
For unregistered agents, the fund house receiving the service will pay 18 percent tax on their behalf. If RCM came into effect the fund houses would have deducted it from their commission.
“This is beneficial to small distributors who work from small offices and earn less than Rs 20 lakh per year,” said a Mumbai-based distributor.
For distributors that have already done GST registration, fund houses will continue to follow forward charge mechanism, wherein MFs will pay the gross commission to them, while these distributors will continue to avail the benefits of input credit.
The RCM was to kick in from July but got deferred by three months to September this year and now further to September 2019. The distributors’ body had recommended that the government should grant an exemption to small distributors who earn less than Rs 20 Lakh annually.
