Bombay High Court Directs Maharashtra to Frame Policy on Seized Vehicles Dumped in Public Spaces

The Bombay High Court has ordered the Maharashtra government to develop a comprehensive policy to address the widespread issue of seized vehicles being abandoned in public areas, especially around police stations in Mumbai. The directive came in response to a petition by the Marathon Maxima Co-operative Housing Society, which raised concerns about such vehicles being parked on open land near residential areas, creating visual blight and public inconvenience.

A division bench of Justices GS Kulkarni and Advait Sethna expressed strong disapproval over the government’s inaction, especially since a similar direction had been issued nearly two years ago without any follow-through. The Court emphasized that Mumbai’s lack of open spaces makes it imperative to avoid using public areas for storing seized vehicles, which contributes to encroachment and hampers pedestrian movement.

The bench ordered the creation of a mechanism to ensure that such vehicles are immediately transferred to designated storage facilities, rather than left on roads, pavements, or near police stations. It criticized the passive stance of civic and traffic authorities, stating that their inaction only worsens the problems faced by pedestrians.

The Court directed the Additional Commissioner of Police (Traffic) and the Inspector General of Police, Maharashtra, to draft a detailed action plan. This plan, to be framed under the supervision of the Principal Secretary (Home Department), must be submitted before the next hearing scheduled for April 29.

IBBI Seeks Feedback on Simplifying Compliance and Addressing Statutory Approval Issues

The Insolvency and Bankruptcy Board of India (IBBI) has invited public feedback on regulations under the Insolvency and Bankruptcy Code (IBC) to simplify processes, reduce compliance burdens, and lower costs. This initiative also aims to address the common issue of delays or denials in obtaining statutory approvals, which hinder the implementation of approved insolvency resolution plans.

This move reflects IBBI’s ongoing efforts to address challenges in insolvency and liquidation, ensuring that regulations remain practical and efficient. IBBI has encouraged stakeholder engagement to refine the regulatory framework, aligning with the Union Budget’s call for regulatory review. Simplified compliance processes are expected to help insolvency professionals focus on core duties while regulators address systemic risks.

The IBBI’s proposal includes seeking public comments on several processes under the Code, including the Corporate Insolvency Resolution Process (CIRP), liquidation, voluntary liquidation, and insolvency resolution for personal guarantors. The goal is to create a more efficient and accessible insolvency resolution mechanism that benefits all stakeholders.

Key challenges include addressing the differences between secured and unsecured creditors during CIRP and handling the approval of resolution plans, particularly when statutory approvals are delayed or denied. IBBI’s initiative aims to address these issues and ensure that resolution plans are implemented smoothly, reducing the complexities that currently lead to litigation and delays.