Nirmala Sitharaman tables new bankruptcy bill in Lok Sabha
Finance Minister Nirmala Sitharaman just introduced a new bill in the Lok Sabha to shake up India's bankruptcy process.
The big idea? Make it easier and faster for creditors to sort out bankruptcies, ideally outside of court, since cases have been dragging on way past the 330-day deadline.
Bill sets a tighter 150-day window for creditors, debtors
The bill sets a tighter 150-day window for creditors and debtors to agree on rescue plans, so things move quicker and do not get stuck in court.
The National Company Law Tribunal (NCLT) will mainly step in just to approve or confirm plans, not handle every detail.
There are also fresh rules for dealing with cross-border cases and company groups, inspired by U.N. guidelines.
This is the seventh update since 2016, all aiming to make bankruptcies less painful and more efficient for everyone involved.