The Insolvency and Bankruptcy Code (IBC), which was introduced in 2016 to help financially-troubled corporates, is in fact giving banks a run for their money when it comes to subversion of processes.
In June 2017, the Reserve Bank of India (RBI) identified 12 non-performing accounts or assets (NPAs), totaling 25 percent of India’s gross NPAs, which could be immediately taken up under the Insolvency and Bankruptcy Code (IBC).
Following this, companies like Essar Steel and Educomp Solutions had filed for insolvency resolution under provisions of the Code.
But the matter may not be as black and white as it looks. Senior officials from large accounting firms that Moneycontrol spoke to, said that a few companies have been t…
Read the full article at: https://www.moneycontrol.com/news/business/economy/are-companies-using-insolvency-and-bankruptcy-code-to-subvert-the-system-2542563.html
