Cabinet okays changes to insolvency and bankruptcy code to block defaulters
Changes to help prevent
wilful defaulters from bidding for stressed assets
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NEWS : The government will come out with an ordinance to make certain
amendments to the Insolvency and Bankruptcy
Code, Corporate Affairs Minister Arun Jaitley said on Wednesday.
The Code, which became operational in December last year,
provides for a market-determined and time-bound insolvency resolution process.
It is implemented by the corporate affairs ministry.
The Cabinet approved bringing in an ordinance to make
"some changes" in the Code, Jaitley told reporters.
Details about the proposed changes could not be immediately
ascertained.
The move also comes at a time when there are concerns in
certain quarters about various aspects of the law, including the possibility of
promoters wresting back control of a company under the insolvency process.
The ministry has already set up a 14-member committee to
identify and suggest ways to address issues faced in implementation of the law.
The Insolvency Law Committee, chaired by Corporate Affairs
Secretary Injeti Srinivas, will take stock of the implementation of the Code.
More than 300 cases have been admitted for resolution under
the Code by the National Company Law Tribunal (NCLT).
A case is taken up for resolution under the Code only after
receiving approval of the NCLT for the same.
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