India’s Insolvency and Bankruptcy Code was built to correct a broken credit culture. It has unquestionably changed lender behaviour, improved recovery discipline and created a rules-based architecture where disorder once prevailed. But legal validity, by itself, is not enough to sustain legitimacy.
Vedanta Group’s appeal before the NCLAT against the approval of Adani Enterprises’ acquisition of Jaiprakash Associates Limited (JAL) raises a broader policy question. The NCLT cleared the deal after creditor approval, despite Vedanta being the highest bidder by over INR 3400…