Essar Group CEO Prashant Ruia says there must be a distinction in the bankruptcy code to deal with instances where the promoter has done something wrong and when it is a genuine business decision that has failed. When there is no wrongdoing, We should not talk about punishment, especially at a time when India is promoting a startup culture where there are going to be failures, he tells ET, a day after holding company Essar Global Fund announced full repayment of the groups debt. Amendments to the Insolvency and Bankruptcy Code (IBC), first barring promoters from submitting a resolution plan before repaying dues and then allowing for the withdrawal of an asset from the process, were done in a little unfair manner because the first was wit…
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