Finance Minister Highlights Success Of Insolvency Code, Announces New Reforms To Boost Corporate Efficiency
Date
7/24/2024 2:27:34 PM
(MENAFN- KNN India)
New Delhi, Jul 24 (KNN) In a move set to reshape India's corporate landscape, Finance Minister Nirmala Sitharaman unveiled significant reforms to expedite corporate exits and strengthen the insolvency resolution process during her presentation of the Union Budget for 2024-25.
The Centre for Processing Accelerated Corporate Exit (C-PACE), initially established to facilitate swift company closures, will now extend its services to include the voluntary winding up of Limited Liability Partnerships (LLPs). This expansion aims to substantially reduce the time required for business entities to cease operations.
Highlighting the success of the Insolvency and Bankruptcy Code (IBC), Sitharaman reported that over 1,000 companies have been successfully resolved, resulting in a direct recovery of more than Rs 3.3 lakh crore to creditors.
Moreover, 28,000 cases involving over Rs 10 lakh crore have been disposed of before reaching the admission stage, underscoring the Code's effectiveness in addressing corporate insolvencies.
To further enhance the efficiency of the insolvency resolution process, the government plans to implement reforms and strengthen both the tribunal and appellate tribunals. Additional tribunals will be established, with some specifically designated to handle cases under the Companies Act exclusively.
In a parallel move to bolster debt recovery mechanisms, the Finance Minister announced plans to reform and reinforce debt recovery tribunals.
The establishment of additional tribunals is expected to accelerate the recovery process, providing relief to creditors and promoting a healthier financial ecosystem.
These comprehensive measures signal the government's commitment to creating a more agile and responsive corporate regulatory framework, potentially boosting investor confidence and economic growth in the coming years.
(KNN Bureau)
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