The right reaction

The Union Cabinet has signed off on further amendments to the landmark Insolvency and Bankruptcy Code (IBC). The purpose of these amendments is to ensure that there is greater protection for successful bidders under the resolution process. In particular, they should not be subject to criminal action for offences that might have been committed by the previous management of the company or asset owner. In some recent cases, the winning bidder has explicitly sought such protection. The possibility of criminal proceedings is, after all, a major deterrence to many investors who might be interested i.....

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