Need to ensure companies end up in the hands of the right promoters: MS Sahoo
In a landmark move to tackle the recurring menace of bad loans, the President signed off on the ordinance to tweak the Insolvency and Bankruptcy Code (IBC). However the changes which were approved by the President on Thursday – come with a big twist.
It’s not just “wilful” defaulters and those convicted of fraud, even defaulting promoters in general are set to lose their companies.
The law does not mince its words or beat around the bush. It reads, “In order to strengthen further the insolvency resolution process, it has been considered necessary to provide for prohibition of certain persons from submitting a resolution plan who, on account of their antecedents, may adversely impact the credibility of the process under the code.”
CNBC-TV18’s Ritu Singh, caught up with MS Sahoo Chairman, Insolvency & Bankruptcy Board of India (IBBI) to discuss the impact of the amendments.
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