Insolvency and Bankruptcy Law to be operational by December

The government expects the entire Insolvency and Bankruptcy Law to become operational by end-December, Economic Affairs Secretary Shaktikanta Das said here on Tuesday.

"We have a definite roadmap to implement the Bankruptcy Law, the Ministry of Corporate Affairs is working on it, the Law Ministry, the Legislative department have played a very significant role in finalising the legislation and they will continue to have a very significant role in also finalising the regulations," he said, at an event organised by Assocham.

Talking about how a clear roadmap has been drawn up, he added that the Ministry of Corporate Affairs has already published certain draft regulations and has invited comments, other regulations and rules are under preparation and they will be put in the public domain for consultation.

"Now it is the responsibility of both government and industry bodies and every category of professionals to develop information utilities, to develop insolvency professionals and take the implementation of this law forward and see that it is fully implemented and the economy and country are able to get its full benefits," said Das.

Regarding the Centre's plan to implement Goods and Services Tax (GST) from April 1, 2017, he said, "Administratively and whatever preparedness is required, all that is in place and the government is absolutely determined to introduce it (GST) from April 1, 2017, the state governments are also equally committed to introducing it from that date."

"The GST will happen, Bankruptcy Law has happened and both these pieces of legislation together with amendments to the Arbitration Law, SARFESAI, DRT related laws and the Company Law, these have the potential of creating a very vibrant and dynamic economy in India," he added.

"Our expectation is that the Bankruptcy Law together with the GST will really bring a lot of dynamism and efficiency to the Indian economy," Das added.

On the issues pertaining to GST rate structure on which there is a lot of discussion going on at the moment, within the GST Council and also in the public domain, Das said, "We hope and we are quite confident that they will get resolved in the next meeting of GST Council in the 1st week of November. I think in may be one or two more sittings, it should come to a conclusion."