New Delhi, Mar 27 (KNN) The committee set up to review the Insolvency and Bankruptcy Code has suggested changes in the law to make the rules a little easier for MSMEs.

The committee proposed that promoters of micro, small and medium enterprises (MSMEs) who are not wilful defaulters should be allowed to bid during the insolvency process, according to a media report quoting the report submitted by the panel.

If adopted the move would ease prospects of companies being acquired and revived, thus saving jobs, instead of going into liquidation.

The Insolvency and Bankruptcy Code review panel also suggested changes in law for providing relief to home buyers by treating them as financial creditors while deeming the amount raised from them for real estate projects as financial debt.

A 90-page report has been submitted to Union Finance Minister Arun Jaitley by the 14-member committee headed by corporate affairs secretary Injeti Srinivas.

Srinival, according to a media report, said MSMEs were the bedrock of the Indian economy. It said the government should make exemptions and modifications in the IBC for MSMEs. It suggested that operational creditors of important MSMEs should get paid more than the liquidation value due to their indispensability.

The committee also proposed an addition to Section 29A(c) to the effect that “if an NPA (non-performing asset) account is held only because of acquisition of a corporate debtor then disqualification will not be applicable for a period of three years from the date of approval of the prior resolution plan by the NCLT.”