According to the financial services secretary, India's finance ministry has requested managing directors of public sector banks to assess the top 20 insolvency cases. The government has requested assessments of insolvency cases due to delays in admission to insolvency courts. "There are some delays in the admission stage," stated Vivek Joshi.
According to Joshi, India's finance minister will also review the government-backed bad bank due to delays in acquiring soured debts. The Centre is unlikely to revisit the IBC Bill until after the 2024 general elections.
According to a source close to the issue, the Ministry of Corporate Affairs (MCA) would likely revisit the adjustments to the Insolvency and Bankruptcy Code (IBC) after the general elections in July-August to examine the changes that the Code requires.
"There is a need to relook at whether more changes are required and have discussions on how to proceed with the amendments," said the individual, who asked to remain anonymous.
The decision to reconsider the proposed amendment Bill comes against the backdrop of the IBC's periodic modifications since its implementation in 2016. So far, the statute has been amended six times.
The most recent round of revisions called for a total overhaul of the Code, including a separate framework for real estate insolvency with some exclusions. The draft Bill also includes an enabling clause that will allow the government to expand the scope of prepackaged insolvency for larger businesses in the future.
