According to IBBI report, out of the 1,484 cases admitted for the CIRP, 586 have been closed till December 2018.
Next month, it would be 3 years since Parliament enacted the bankruptcy law. There have been hits and misses. As it matures, incumbents are working overtime to puncture it while others are waiting for it to deliver results. The new government should aim at strengthening it instead of weakening it, say Joel Rebello and Atmadip Ray
As a raging currency crisis in emerging Asia threatened to engulf the globe and singe financial markets from Tokyo to Toronto in the summer of 1997, a new phrase entered the common man’s active vocabulary: Crony capitalism. Much of the Asian Financial Crisis was blamed on this practice, as were subsequent economic failures in Russia, Greece, Cyprus, and the Iberian Peninsula. India hasn’t been immune to this nexus either, and the country’s record bad-loan pile has been attributed, in part, to crony capitalism.
In the winter of 2016, New Delhi sought to root out this practice, and extricate about Rs 10 lakh crore stuck in debt in industries as diverse as steel, cement, infrastructure financing, housing and jewellery. In its scope, therefore, the Insolvency and Bankruptcy Code (IBC) was not only the most well-intentioned, but also ambitious piece of economic legislation in the country.
To be sure, its record has been rather mixed since its birth in May 2016. From vested interests and protracted litigation to periodic reinterpretations of the law, the IBC mechanism has been slow in extricating cash stuck in unv ..
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