NEW DELHI: A Parliamentary panel approved the Bankruptcy and Insolvency Bill aimed at overhauling century-old bankruptcy regulations, taking the key reform measure closer to implementation.
Welcoming the move by the Joint Parliamentary Committee, Economic Affairs Secretary Shaktikanta Das tweeted, “Welcome submission of report by Joint Parliamentary Committee. Effort will be to get it passed in current Budget session. Will make our banking system more robust,economy more efficient and India a more attractive investment destination.
Domestic corporates, LLPs, partnership firms, etc will gain in efficiency.
Resolution of distress situations will be faster.” According to World Bank, creditors in India recover about 25.7 cents on the dollar in 4.3 years taken resolve insolvency, compared to 80.4 cents in the US in less than half the time.
“Given that many corporate transactions and businesses involve an international element, the implications of insolvency cannot be ignored for too long,” the panel said in its report tabled in Parliament. It also wants the LIC and IDFC to be included in the list of lenders apart from banks.