MUMBAI: Liquidation cases are likely to rise as resolution plans fail to give a reasonable valuation, said bankers at the Mint India Investment Summit. They also said liquidation numbers are high due to legacy issues.
If we really look into the number of liquidation orders, the ratio is 1:4. Partly, we need to understand these figures in the right perspective, because many of these were old Board for Industrial and Financial Reconstruction (BIFR) cases. When Sick Industrial Companies (Special Provisions) Act (SICA) was removed and all the BIFR cases were told to go to National Company Law Tribunal (NCLT), they were given a six-month window. Many of those 300-400 cases came into liquidation stage,” said R.K. Bansal, chief executive offi…
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