New Delhi: The Union cabinet on Wednesday cleared an ordinance to bar wilful defaulters and businesses with dubious antecedents from bidding for stressed assets to prevent the misuse of the bankruptcy code enacted to clean bank balance sheets and resolve industrial sickness.
Finance minister Arun Jaitley told reporters that the year-old insolvency & bankruptcy code was being amended through an ordinance, without specifying the changes. The ordinance will now go to President Ram Nath Kovind for his assent.
However, officials said sections 29A and 235 of the code were being amended to bar businesses that have been declared wilful defaulters.
Wilful defaulters are those promoters who have the ability to repay loans but are unwilling to do …
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