NEW DELHI: The ordinance aimed at keeping promoters who are wilful defaulters from bidding for their companies during the insolvency process was the result of lengthy deliberations and will improve the lending and borrowing culture in the country, corporate affairs secretary Injeti Srinivas told ET. Further changes to the Insolvency and Bankruptcy Code (IBC) will be made as needed, he added.
People will now think twice before gold plating, he said in an interview. From the lenders side also, now when you are lending, nothing other than viability and feasibility will be the determining factor.
The government promulgated an ordinance last week amending the IBC to keep wilful defaulters, undischarged insolvents and disqualified director…
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