Business Standard

Insolvency and Bankruptcy Code: Keeping promoters at arm's length

Many experts feel the spirit of the Code is compromised if original promoters get back control of their distressed assets

Insolvency and Bankruptcy Code: Keeping promoters at arm’s length
Premium

Illustration: Binay Sinha

Veena Mani
With a dozen big-ticket insolvency resolution cases nearing the end of the moratorium of 180 days, questions are being raised on whether the existing promoters should be allowed to bid for their own assets.

The government has come up with amendments in the Insolvency and Bankruptcy Code (IBC) to state that credentials of the resolution application need to be mentioned at the time of submission of the bids. What this essentially means is promoters that have been declared wilful defaulters or have been found to have diverted funds following a forensic audit, will not be allowed to participate in the

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in