Ministry looks at UK model of bankruptcy in case of individuals

Corporate affairs secretary says there should be a process of even loan waiver in some cases

Corporate affairs secretary Injeti Srinivas on Monday favoured the UK model of bankruptcy in the case of individuals. He said there should be a process of even loan waiver in certain cases.

At a CII event, Srinivas was of the opinion that individuals undergoing resolution under the bankruptcy law should be allowed a ‘fresh start’ and the loan should be waived in case it is small. 

He added that relief must be given based on income levels, assets and possession of dwellings, among others.

He said that such an approach is recommended as a large number of borrowers has only small loans. Indiv­idual