Economic Affairs Secretary Shaktikanta Das has raised his hopes that the Bankruptcy and Insolvency law is expected to become operational by the end of this year, leading to further ease of doing business. He said that the government has a definite roadmap to implement the Bankruptcy law and the Ministry of Corporate Affairs is working on it. The law ministry, the legislative department is also working on finalizing the regulation. Therefore they expect the entire bankruptcy and insolvency law to become operational by end of December.
The government has already set up Insolvency and Bankruptcy Board of India (IBBI) and floated draft norms to take views of the stakeholders. The views of stakeholders have been sought till October 31 on these draft norms. The board will have 10 members and apart from the chairman, currently there are four government-nominated members and the rest are expected to be appointed in coming months. The ministry had issued draft regulations pertaining to registration of insolvency professionals, agencies and model bye-laws. A working group of experts, set up by the ministry, has prepared these regulations.
The Economic Affairs Secretary said that their expectation is that the Bankruptcy Law together with the GST will really bring a lot of dynamism and efficiency to the Indian economy. He added that the GST will happen, Bankruptcy Law has happened and both these pieces of legislation together with amendments to the Arbitration Law, SARFESAI, DRT related laws and the Company Law, have the potential of creating a very vibrant and dynamic economy in India. As per the government notification, the Insolvency and Bankruptcy Code seeks to consolidate and amend laws relating to reorganization as well as insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner.
