The likelihood of the NDA government pushing through the Insolvency and Bankruptcy Code, 2015, increased on Thursday after theCongress indicated its support — in principle — for the report of the Joint Parliamentary Committee on the significant economic reform.
The bill to overhaul India’s century-old bankruptcy regulations is key to Prime Minister Narendra Modi’s agenda of improving the ease of doing business in the country.
The government hopes to pass the bill in this session that is witnessing continuing hostility between the Opposition and the ruling party over the AgustaWestland investigation.
The Parliamentary panel in its report has asked for a new clause to be inserted in the Insolvency and Bankruptcy Code to provide for seizing overseas assets of defaulting companies and individuals. If accepted, such a provision could strengthen lenders’ claims in cases such as the Kingfisher Airlines case.
Congress leader Abhishek Singhvi told reporters on Thursday that the party was broadly in agreement with the report, barring a few small changes.
