On Wednesday, Union Home Minister Amit Shah took to twitter to announce the major decisions that were taken by the Union Cabinet today. In a big relief to the corporates, the Union Cabinet led by PM Modi on Wednesday approved the Companies (2nd Amendment) Bill, 2019. The bill which seeks to amend the Companies Act 2013 would help remove criminality under the Act in case of defaults which can be determined objectively and which, otherwise, lack the element of fraud or do not involve larger public interest.
PM @narendramodi Cabinet approved the Companies (2nd Amendment) Bill, 2019 to amend Companies Act, 2013.— Amit Shah (@AmitShah) March 4, 2020
The Bill removes criminality under the Act in case of defaults which lack element of fraud or do not involve larger public interest. Big boost for law abiding corporates.
Amit Shah also tweeted about the govt's decision to not let non-resident Indians acquire a 100% stake in Air India under the automatic route. "In another important decision, Modi govt has today approved amendment to the extant FDI Policy, which permits Foreign Investment(s) in Air India by NRIs, who are Indian Nationals, up to 100%. This decision will lead to an inflow of FDI and growth of investment, income and employment," read his tweet.
The Home Minister also tweeted about the government's decision in regard to the consolidation of Public Sector Banks or PSBs. Under this, the Cabinet has approved the merger of ten major PSBs into four.
Modi government has also approved mega consolidation of PSBs w.e.f 01 April 2020. The merger would result in creation of seven large PSBs with national reach. This would also provide impetus to amalgamated entities by increasing their ability to support larger ticket lending.— Amit Shah (@AmitShah) March 4, 2020