Clients of Karvy Private Wealth have challenged certain sections under the Insolvency and Bankruptcy Code (IBC) on the grounds that these do not provide restitution to financial creditors in cases where the corporate debtor has raised money through a fraudulent investment scheme.
The Delhi High Court had issued notices to the Centre, Karvy Stock Broking (under which Karvy Private Wealth was housed) and various other parties on 13 August.
The clients had lent money to various builders, many of whom subsequently went into bankruptcy resolution.
The clients had earlier approached the Supreme Court in January 2020, challenging IBC amendments that imposed requirements of at least 100 creditors or 10% of a class of creditors in order for …
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