Revisiting pre-IBC norms only after current rush: FM Arun Jaitley

Only after the initial clutter of insolvency cases is cleared, marrying the pre-Insolvency and Bankruptcy Code (IBC) mechanism with the current law for resolving bad debts could be considered, said Arun Jaitley on Tuesday. We have to see if revival is only through the IBC or can we revive otherwise, he said. However, Jaitley said, various RBI schemes for settlements and restructuring did not bring much result. The central bank has also said banks would have to cough up higher penalties and make higher provisioning on their books if it was found that they had violated the Code or were evergreening accounts. There are many contradictions that have been pointed in this, he said. Brothers are considered to be related parties, but they need not be in terms of business said Jaitley. They might be business opponents. M S Sahoo, said 300 cases have been resolved or liquidated since the IBC was rolled out. Of these, 212 were sent for liquidation, 52 found resolution, and 118 were closed on appeal or review, according to the official data. He also provided other sets of data: Of the 816 current cases in the IBC process, 180 days have not been completed in 420. In 158 cases, 180 days are over, but not 270. In 238 cases, 270 days are over.

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