New Delhi: Are the Narendra Modi governments attempts at cleaning up Indias bad loans crisis specifically the new bankruptcy law for the resolution of unpaid bank loans by companies being gamed by promoters who might be using these new mechanisms to escape their repayment obligations?
Consider the case of Educomp Solutions (ESL), which was once a promising player in the private education space.
The Wire has examined documented evidence that shows how ESL started the effective transfer of its core business to other companies having strong links with the original promoter before taking the original corporate entity to bankruptcy court.
The flagship entity went to the National Company Law Tribunal (NCLT) for insolvency in May 2017. On…
Read the full article at: https://thewire.in/business/how-educomp-may-have-subverted-the-spirit-of-indias-insolvency-and-bankruptcy-process