Latest estimates suggest that the Non-Performing Assets (NPA) in the Indian banking system have crossed the Rs 10-lakh crore mark. Soon enough, the government also kicked into action and last December, the Insolvency and Bankruptcy Code (Code) became operational to help banks’ management deal with companies and promoters that were gaming the system for its loopholes. The Ordinance is aimed at scuttling promoters bids aimed at regaining control of their companies. Reportedly, a new aspect has been introduced in the Ordinance which mandates personnel who are ineligible to be considered as “Resolution Applicants”. Going forward the Ordinance must be laid before Parliament and a kosher law must be legislated and implemented that comprehensively delineates a detailed mechanism.

Source: dna November 24, 2017 02:37 UTC