The Cabinet on Wednesday gave approval to amend the Insolvency and Bankruptcy Code (IBC) to prevent wilful defaulters from bidding for stressed assets, two TV channels reported citing unnamed sources. The IBC is one of Prime Minister Narendra Modi’s biggest reforms.
Some owners are reported to be getting ready to stake a claim for these assets when they are put up for sale by the creditors.
The finance ministry had earlier asked banks to ensure that wilful defaulters were prevented from buying same stressed assets again as it strives to cut the record $147 billion soured loans accumulated in the banking sector. Finance Minister Arun Jaitley is scheduled to brief the media later in the day.
Just three year ago, when Modi’s governme…
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