Govt likely to resume bankruptcy filings as halt set to end on March 25

Modi govt last year halted the process of initiating most fresh insolvency proceedings to insulate cash-strapped borrowers hit by the pandemic

India’s government is considering resuming fresh bankruptcy filings after the current suspension expires on March 25, people with knowledge of the matter said.

The lifting of the halt would come even as a resurgence in virus cases threatens the nascent economic recovery. It could spark a wave of new insolvencies, pent up from last year when businesses were hurt by India’s first economic contraction in decades.

Prime Minister Narendra Modi’s government last year halted the process of initiating most fresh insolvency proceedings to insulate cash-strapped borrowers hit by the pandemic for six months starting March 25, and that was extended twice during