homefinance NewsGovernment mulls resolution in two parts under IBC
finance | Dec 29, 2022 6:01 PM IST

Government mulls resolution in two parts under IBC

Mini

Sources told CNBC-TV18 that the government may separate bid approval part from distribution of money. The government expects the adjudicating authorities to give a quicker approval to bids once they come in from the Committee of Creditors (CoC).

The Centre is planning sweeping changes to the Insolvency and Bankruptcy Code (IBC). CNBC-TV18 learns that the process could be split into two parts to ensure quicker resolution and fewer litigations.

Recommended Articles

View All

Sources told CNBC-TV18 that the government may separate the bid approval part from the distribution of money. The government expects the adjudicating authorities to give a quicker approval to bids once they come in from the Committee of Creditors (CoC). The move will ensure that the new promoter comes into the picture immediately and not wait for the distribution of money to start.
According to the government, the undisputed money can be given out to stakeholders in the first stage, while the disputed part of the money can be kept separately in an escrow account till the litigation gets over.
Sources told CNBC-TV18 that the government is also considering introducing a challenge mechanism into the IBC to cut delays and maximise the value of potential bids.
The government may also clarify on immunity given to new promoters as some courts have allowed fresh proceedings after resolution.
Currently, new promoters are exempt from fresh tax demands or legal proceedings arising pre-IBC.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Top Budget Opinions

    Most Read

    Market Movers

    View All
    Top GainersTop Losers
    CurrencyCommodities
    CompanyPriceChng%Chng