SME Times News Bureau | 07 Dec, 2018
A scattered regime
prior to the enactment of the Insolvency and Bankruptcy Code (IBC) is
responsible for high Non-Performing Assets (NPAs) of banks, said Finance and
Corporate Affairs Arun Jaitley.
Video Conferencing in a conference in IBC, Jaitley said that the scattered regime prior to the enactment of the
Insolvency and Bankruptcy Code (IBC), 2016 had impacted the domestic private
investment with over capacities in certain sectors coupled with unacceptably
high levels of Non-Performing Assets (NPAs) in the Banking System, hindering
address these concerns, the Finance Minister said that this Government not only
enacted the Code expeditiously, but also has been implementing it at an
anticipated that in the initial days, there would be some teething troubles, he
said adding that the Government is addressing these troubles on priority.
the initial difficulties, the outcome from implementation of the Code has been
better than the anticipated, he added.
further on the occasion, Jaitley said that the only downside has been that in
some of the cases because of appeals and counter-appeals and litigations, the
process has got somewhat delayed.
then the Supreme Court has stood-up to the occasion, he added.
to the regrettable phenomenon of unwillingness of the debtors to repay the
debts in the past, the Finance Minister emphasized that the Code has
significantly changed the lender-borrower relationship in India.
further said that a very large number of debtors who fear that they are about
to touch or cross the red line after which they will be in the NCLT (National
Company Law Tribunal) are now refraining themselves from becoming