The Government is considering increasing the number of benches in BIFR, the quasi-judicial body that looks at revival of financially sick companies, Finance Minister Pranab Mukherjee said today.
Board of Industrial and Financial Reconstruction (BIFR) currently has only three benches, which is one of the reasons why revival or winding up cases get dragged for years.
"Review of performance and expanding the number of benches (in BIFR) is under consideration of the Government," Mukherjee said during Question Hour in the Rajya Sabha.
He, however, said the Government cannot fix a timeframe for disposal of cases referred to it as BIFR was a quasi-judicial body.
Minister of State for Finance Namo Narain Meena said of the 7,472 cases received by BIFR, 4620 were disposed of and 1,031 cases were pending. 744 companies have been declared sick and winding up recommended in case of 1,229.
Certain delays do occur, he said.
BIFR has declared 200 firms sick under the Sick Industrial Companies (Special Provisions) Act, 1985 since April 2009, Mukherjee said.
"BIFR has recommended 22 industrial companies/units for winding up since April 2009 and the number of employees in these industrial companies/units at the time of their registration was 2,174," he said.
Mukherjee said sometime there may be a conflict between the recommendation of BIFR and the financial institution which is to implement the order. "The differences have to be overcome," he said, adding nobody was defying BIFR order.
