No repeat of 2G, Satyam if laws are sincerely implemented: NCLT president

Sincere implementation of laws including those dealing with insolvency and bankruptcy will ensure that there is no repetition of 2G and Satyam like scams in India, the National Company Law Tribunal (NCLT) President Justice M M Kumar said on Saturday in New Delhi, at an event organized by FICCI on 'Insolvency and Bankruptcy Code 2016'.

He further said that bankruptcy laws are very strict in the US and Vijay Mallya type of instances cannot take place there.

If the law is implemented sincerely, it is not going to happen in India also, Kumar said, adding implementation of law is a serious challenge.

The NCLT, which was constituted last month, has replaced the Company Law Board.

Kumar said in the insolvency and bankruptcy code, role of professionals is more important. He believes that the task of selecting insolvency professional should be given to the agencies.

Satyam scam was one of the biggest corporate frauds, which involves financial mis-statements to the tune of about Rs 12,320 crore.

Under the Companies Act, 2013, the NCLT and its appellate tribunal were notified by the Corporate Affairs Ministry on June 1.

It has been set up at 10 locations, including the national capital, Mumbai, Kolkata, Hyderabad and Chennai.

Among others, the NCLT has powers to delegate inquiry related to proceedings before it and securing assistance of a magistrate or collector to take possession of property.