New government rules for dealing with guarantors of corporate loans to bankrupt companies are likely to provide for selling off individuals assets to recover the unpaid dues, top government sources told HT.
The government is likely to notify the rules that will provide for proceedings by the National Company Law Tribunal against individual guarantors.
The rules also propose a repayment plan and a concept of mediation.
The proposed rules have been vetted by an advisory committee headed by Justice Srikrishna.
There are two types of individuals, those with personal guarantees for corporate loans and those with or without business interests. We are first framing rules for promoters businessmen who are personal guarantors for loans to defaulting…
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