- Tag results for Insolvency and Bankruptcy Code
The amendment proposes to classify home buyers as ‘financial creditors’, which means they will have the same legal rights as banks to recover dues.
Sixteen months after the rollout of Insolvency and Bankruptcy Code to cleanse the banking sector’s bad loans mess, the jury is still out.
Yesterday, Reliance Industries, which had submitted a resolution plan along with JM Financial Asset Reconstruction Company for Alok Industries, had informed that its bid has been rejected by the CoC.
RBI scrapped numerous loan restructuring programmes, asking banks to immediately identify defaults and make disclosures every Friday to the RBI credit registry, starting from February 23.
The company owed lenders around Rs 4,600 crore, and reported a loss of Rs 676 crore on a revenue of Rs 541 crore in 2016-17.
This clearing will pave the way for the Bill to be presented to the President for ascent where after the same will become a law.
Union Finance minister Arun Jaitley said the government cannot allow loan defaulters to “merrily walk back” by paying a fraction of the due amount.
Finance Minister Arun Jaitley today introduced a bill in the Lok Sabha to bar wilful defaulters as well as those with NPA accounts from bidding in auctions to recover bad loans.
The wealth held by Indian individuals in financial assets has seen a substantial rise in FY17 growing at the rate of 14.63 per cent to Rs 204 lakh crore.
The government today promulgated an ordinance to bar wilful bank loan defaulters as well as those with NPA accounts from bidding in auctions being done to recover loans.
The finance ministry has already asked banks to ensure that wilful defaulters are prevented from buying back assets.
The Insolvency and Bankruptcy Code (IBC) formulated in 2016 is inter alia supposed to take care of recovery of debts in a time-bound manner and also set a deterrent for other defaulters.
Providing clarity, the government today said resolution plans under the Insolvency and Bankruptcy Code does not require approval of the shareholders.
The Supreme Court agreed to hear a plea seeking protection of interests of over 30,000 buyers who invested hard-earned money to book their dream homes.
Explaining the rationale for the new insolvency and bankruptcy code, he said, this was necessitated by the failure of debt recovery tribunals to effectively perform their duty after initial success.