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Bankruptcy & Insolvency Law soon to be Operational

Shaktikanta Das expressed hope that both law would become operational and further bring ease of doing business

Policy Pulse
Publish Date: Oct 26 2016 12:27PM | Updated Date: Oct 26 2016 2:42PM

Bankruptcy & Insolvency Law soon to be Operational

Economic Affairs Secretary Shaktikanta Das affirmed that the Bankruptcy and Insolvency law would become operational by the end of this year, leading to further ease of doing business.

"We have a definite roadmap to implement the Bankruptcy law. The Ministry of Corporate Affairs is working on it. The law ministry, the legislative departments are also working on finalising the regulation,” he said.

The government has already set up Insolvency and Bankruptcy Board of India (IBBI) and floated draft norms to take views of the stakeholders.

Earlier this month, draft regulations related to liquidation of insolvent corporate persons, insolvency resolution process for corporate persons and application to judicial authority.

The ministry had issued draft regulations pertaining to registration of insolvency professionals, agencies and model bye-laws. A working group of experts, set up by the ministry, has prepared these regulations.

Notified by the government in May, the Insolvency and Bankruptcy Code seeks to consolidate and amend laws relating to reorganization as well as insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner.