How Educomp may have subverted the spirit of India's IBC process

The auditor's report raises questions over its balance sheet and there is evidence to show its core business was effectively transferred to a separate but connected company before IBC process started

Are the Narendra Modi government’s attempts at cleaning up India’s bad loans crisis — specifically the new bankruptcy law for the resolution of unpaid bank loans by companies — being gamed by promoters who might be using these new mechanisms to escape their repayment obligations?

Consider the case of Educomp Solutions (ESL), which was once a promising player in the private education space. 

The Wire has examined documented evidence that shows how ESL started the effective transfer of its core business to other companies having strong links with the original promoter before taking the original corporate entity to bankruptcy court.

The flagship entity