Finance Ministry tables IBC amendment bill in parliament

New Delhi, Dec 29 (KNN) Eyeing at bringing necessary amendments and set of directives with regard to Insolvency and Bankruptcy Code in the country , the finance ministry recently tabled the IBC amendment bill in Lok Sabha.

 The Insolvency and Bankruptcy Bill that was introduced by Finance Minister Arun Jaitley earlier yesterday will be replacing the existing ordinance.

Under the new tabled bill, the ministry has proposed to bar those with nonperforming accounts to acquire insolvent companies or their assets.

Also the new bill attempt to explain and expand the provisions that were formulated in the earlier introduced ordinance.

Concerns such as making the resolution process effective and provide more time to promoters and insolvent companies to take part in finalising a resolution plan are taken care of in the tabled bill.

Also the finance ministry has proposed a penalty of minimum `1 lakh, which can go up to `2 crore, for contravening any of the provisions of the Insolvency and Bankruptcy Code in the amended bill. Also the bill is to allow the promoter to submit a resolution plan after clearing dues. (With PIB Inputs) (KNN/DA)