The government is planning to give significant additional powers to the Committee of Creditors (CoC), the primary decision-making body once bankruptcy proceedings are initiated. A key change being considered is to make it mandatory for the CoC to constitute a “monitoring committee” (MC) to oversee the implementation of the resolution plan, according to official sources.
The government is also likely to constitute an “oversight committee” (OC) which would keep an eye on the CoC to ensure that its members follow the stipulated guidelines notified by the Insolvency and Bankruptcy Board of India (IBBI). The proposed OCs would likely be empowered to hold CoC members accountable for lapses, mismanagement, or any decision that may…
