Several companies whose assets are facing insolvency proceedings today said they were not wilful defaulters and would like to participate in the bidding process if permitted.
Legal experts were of diverse opinion, with some saying that barring companies from bidding would further depress the price of such assets resulting in more losses to the banking sector, while others stressed that it would amount to a setback to credible insolvency process if existing promoters are allowed to re-acquire assets with a haircut.
The comments come in the wake of the government today promulgating an ordinance to bar wilful bank loan defaulters as well as those with NPA accounts from bidding in auctions being done to recover loans.
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