Reserve Bank of India (RBI) Deputy Governor M. Rajeshwar Rao emphasized the need for significant improvements in the functioning of the Committee of Creditors (CoC) within the Corporate Insolvency Resolution Process (CIRP).
Addressing a gathering at the International Conclave jointly organized by the Insolvency and Bankruptcy Board of India (IBBI) and INSOL India, Rao highlighted several areas where the CoC’s performance has been found wanting. These include:
- Prioritization Issues: Disproportionate emphasis on individual creditors’ interests rather than the collective interests of the group.
- Internal Disagreements: Conflicts among members of Committee of Creditors regarding resolution plans, often stemming from…
