'Wilful defaulters' barred from taking back insolvent companies

The Insolvency and Bankruptcy Board of India made norms strict for others bidding for insolvent companies

The insolvency regulator has tightened conditions on promoters trying to take back the insolvent companies, allaying fears of lenders that such firms might go back to the very people who were responsible for the current mess, at lower prices. As such, no wilful defaulter can take back the company now as they would be screened by the committee of creditors.

The Insolvency and Bankruptcy Board of India (IBBI) also made norms strict for others bidding for insolvent companies. As insolvency cases keep mounting in the National Company Law Tribunal (NCLT), the IBBI is keen to ensure that resolution professionals facilitate a