Bankruptcy code to improve ease of doing business, says govt

Tribune News Service

New Delhi, December 27

The Ministry of Corporate Affairs has operationalised the Insolvency and Bankruptcy Code, 2016, which is likely to improve India’s rank in terms of Ease of Doing Business and also boost the Startup India plan.

The Insolvency and Bankruptcy Code was notified in August and the Ministry of Corporate Affairs was entrusted with the responsibility to administer the Code.

The Insolvency and Bankruptcy Board of India (IBBI) was established under the Code and Chairperson of the Board was appointed.

The MCA was assigned with timeline of December 1, 2016 to put in place Corporate Insolvency Resolution process as stated under the Code. To achieve the target, the three pillars as envisaged under the Code have been put in place by framing various rules and regulations and notifying relevant sections of the Code.

The three important pillars are the Insolvency and Bankruptcy Board of India (IBBI), Insolvency Professional Agencies and Insolvency Professionals and Adjudicating Authority.

An official statement said the Ministry has also successfully operationalised the Code within given timeframe which is likely to improve India’s rank in terms of Ease of Doing Business. It will also have desired effect on Startup India plan as envisaged by the government.