Potential loan defaulters have started paying up as the Insolvency and Bankruptcy Code (IBC) has instilled the fear of losing their businesses if they cross the red line, finance minister Arun Jaitley said on Saturday. Banks won’t chase you (loan defaulters) any more; you will have to chase banks, Jaitley said.
Jaitley said that was because vested interests would have engineered opposition to the new law. Lauding the amendment in the IBC law to include Section 29A, he said the provision effectively barred willful defaulters of regaining control of their businesses. Potential defaulters are begging, borrowing and stealing, and paying back That’s why banks have started getting money even outside the National Company Law Tribunal (NCLT) system, he added.