New Delhi, November 19: Under the Insolvency and Bankruptcy Code (IBC), the move for safeguarding to buy same stressed assets again from the wilful defaulters will be prevented as the Finance Ministry has asked banks to investigate about such defaulters.
The Finance Ministry has noticed some of the wilful defaulters who were making a bid to buy assets which come under the reference of IBC. The IBC has demarcated time-frame for the resolution and there is the 14-day time period for admittance or refusal of a case by the National Company Law Tribunal (NCLT).
If once the case is acknowledged by NCLT, the creditor would get 30 days to hire bankruptcy specialists and then the whole procedure to be completed in 180 days which will look at numerous prospects including the resurgence of projects or liquidation.
Under the Insolvency and Bankruptcy Code process, there are about 12 accounts each which have more than 5,000 crore rupees of unpaid loans and accounting for 25 percent of total NPAs of banks are being. The total outstanding of these accounts is Rs.1.75 lakh crore rupees.
Under section 408 of the Companies Act, 2013 (18 of 2013), the Central Government has constituted National Company Law Tribunal (NCLT). It is a quasi-judicial body in India that arbitrates issues relating to companies in India. While the Insolvency and Bankruptcy Code, 2016 (IBC) is the bankruptcy law of India which seeks to combine the current framework by creating a single law for insolvency and bankruptcy.