SME Times News Bureau | 25 Nov, 2021
Union Minister of Commerce & Industry Piyush Goyal has termed the Insolvency and Bankruptcy Code (IBC), 2016 as a “gamechanger reform” that has been the most successful law in insolvency resolution in the country.
the 5th Foundation Day function of the Indian Institute of Insolvency
Professionals of ICAI (IIIPI) here today, he hoped the faster Insolvency
Resolution enabled by the IBC will eventually pave the way for banks to
bring down the ‘Cost of Credit’.
the enactment of IBC, India’s rank in ‘Resolving Insolvency’ indicator
in World Bank’s Ease of Doing Business Report has seen a meteoric rise
of 84 places! Our recovery rate has also dramatically improved from 26
(cents on dollar) to 71.6 (cents on dollar),” he said.
Goyal said the IBC has brought about a marked shift in attitudes of
lenders & borrowers, acting as an effective deterrent against
unscrupulous borrowers and imparted banks the tool to follow due
diligence and confidence about recovery.
Minister said, in view of the Covid crisis, the Government suspended
the IBC for a year, from March, 200 to March, 2021.
“This helped India
bounce back much faster. The economy is doing well and five years down
the line the outlook looks very, very bright.”
Goyal said the IIIPI members are serving the nation’s interest by
saving businesses and entrepreneurship in the country.
“This has a big
impact on ‘Saving Jobs and Reviving companies’ and by creating new
that the IIIPI being the largest body of such professionals in the
country, it has a fiduciary duty cast on its members and has a
three-pronged roles to play, - legislative, executive and
The Minister listed out five guiding principles for
Insolvency professionals, - Integrity, Objectivity, Competency,
Confidentiality and Transparency. He called upon the CAs to use
technology in resolution of bad loans, look at new innovative ideas and