The government on Thursday introduced a bill in the Lok Sabha to bar those with non-performing accounts from bidding to acquire insolvent companies or their assets.
The Insolvency and Bankruptcy Code (Amendment) Bill, 2017 will replace an ordinance promulgated last month, which barred those with RBI recognised non-performing loan of at least a year from participating in the resolution process of an insolvent entity.
The bill clarifies some of the provisions of the ordinance, to make the resolution process effective and provide more time to promoters and insolvent companies to take part in finalising a resolution plan. A penalty of minimum `1 lakh, which can go up to `2 crore, has been proposed for contravening any of the prov…
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