To Help Revival Of Viable Firms
Parliament on Wednesday passed a comprehensive bankruptcy code, a long-pending grudge with international investors, which will help speed up closure of unviable companies and revival of viable entities.
The lack of a bankruptcy code is one of the key reasons for India ranking low on the ease of doing business rankings, since it takes several years to wind up a business.Currently , there are a dozen laws dealing with various aspects of sickness and closure, and the one related to insolvency is over a century old. Through the new law , which was cleared by the Rajya Sabha on Wednesday evening, the government is trying to put in place a speedy process for early identification of financial stress and resolve the strain if the business is found viable. It has stipulated a time-bound revival. The new law comes at a time when lenders are dealing with a record pile of bad debt, for which the government has also sought to amend existing laws to make recoveries smoother .
“The essential idea of the new law is that when a firm defaults on its debt, control shifts from the shareholderspromoters to a committee of creditors, who have180 days in which to evaluate proposals from various players about resuscitating the company or taking it into liquidation,“ the finance ministry said in a statement.
For the full report, log on www.timesofindia.com
FM seeks oppn support for GST
Wednesday New Delhi: FM Arun Jaitley on again urged Congress to support the bill that seeks to amend the Constitution for the introduction of goods and services tax (GST) after the principal opposition party suggested it would offer support, provided its three key recommendations are accepted.
“For heaven's sake, I beseech you in the interest of Indian democracy not to go on this misadventure (judge-headed panel)... With the manner in which encroachment of legislative and executive authority by India's judiciary is taking place, probably financial power and budget making is the last power that you have left. Taxation is the only power which states have,“ he said during the debate on the finance bill in the Rajya Sabha.
The minister said it was “wholly misconceived“ for any political party to hand over the taxation power to judiciary .
Source: Times of India
The lack of a bankruptcy code is one of the key reasons for India ranking low on the ease of doing business rankings, since it takes several years to wind up a business.Currently , there are a dozen laws dealing with various aspects of sickness and closure, and the one related to insolvency is over a century old. Through the new law , which was cleared by the Rajya Sabha on Wednesday evening, the government is trying to put in place a speedy process for early identification of financial stress and resolve the strain if the business is found viable. It has stipulated a time-bound revival. The new law comes at a time when lenders are dealing with a record pile of bad debt, for which the government has also sought to amend existing laws to make recoveries smoother .
“The essential idea of the new law is that when a firm defaults on its debt, control shifts from the shareholderspromoters to a committee of creditors, who have180 days in which to evaluate proposals from various players about resuscitating the company or taking it into liquidation,“ the finance ministry said in a statement.
For the full report, log on www.timesofindia.com
FM seeks oppn support for GST
Wednesday New Delhi: FM Arun Jaitley on again urged Congress to support the bill that seeks to amend the Constitution for the introduction of goods and services tax (GST) after the principal opposition party suggested it would offer support, provided its three key recommendations are accepted.
“For heaven's sake, I beseech you in the interest of Indian democracy not to go on this misadventure (judge-headed panel)... With the manner in which encroachment of legislative and executive authority by India's judiciary is taking place, probably financial power and budget making is the last power that you have left. Taxation is the only power which states have,“ he said during the debate on the finance bill in the Rajya Sabha.
The minister said it was “wholly misconceived“ for any political party to hand over the taxation power to judiciary .
Source: Times of India
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