Tuesday, March 04, 2025 | 12:43 PM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

Stressed asset buyers get protection after Cabinet clears IBC amendment

Cabinet clears Code amendments to shield new owners from criminal liabilities

Insolvency and Bankrutcy code IBC
Premium

In many IBC cases in the telecom and mining sectors, government departments moved to take away the licence of the corporate debtor

Ruchika Chitravanshi New Delhi
In a move that will remove the final hurdle for companies taking over stressed firms, the Union Cabinet on Wednesday approved an amendment to the Insolvency and Bankruptcy Code (IBC) that prohibits attaching assets of companies resolved under the mechanism for offences committed by the previous management or promoters.

The decision assumes significance as there have been instances of enforcement agencies taking action against companies whose resolution process has already been completed. The government had received several representations from companies such as JSW Steel and Tata Steel on issues that cropped up after the closure of the IBC process.

“This is long-awaited

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