A recent ordinance introducing Section 29A in the Insolvency and Bankruptcy Code (IBC) debars promoters declared wilful defaulters of companies facing bankruptcy proceedings to bid for the stressed assets. This legal initiative has come not a day too soon. Clever operators who had stripped their companies and misused loans have been regaining control through legal bidding, and getting rid of mountains of loans owed to lenders to boot.
Applicants bidding for companies facing insolvency proceedings have to now provide details of convictions, disqualifications, criminal proceedings, and categorisation as wilful defaulter as per RBI guidelines. The objective is to ensure the same of bunch of crooks dont gain control by floating sh…
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