The RBI had in June put out a defaulter list of 12 largest NPA accounts in its attempts to fix the bad loans problem in Indias banking sector. Photo: Pradeep Gaur/Mint
New Delhi/Mumbai: President Ram Nath Kovind gave his assent to an ordinance amending the Insolvency and Bankruptcy Code on Thursday, barring errant promoters of defaulting companies from regaining control of their assets being sold under the bankruptcy process.
While experts welcomed the move as sending a strong signal against crony capitalism, some expressed concern that such stringent criteria for potential investors could reduce the number of revival proposals that may come up.
The ordinance bars not only wilful defaulters, but also several other categories such as guarant…
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