Corporate debtors set to get IBC immunity against attachment of assets

The MCA has received several representations from companies including JSW and Tata Steel regarding issues that cropped up after the closure of the insolvency and bankruptcy process

The corporate affairs ministry (MCA) is planning to come up with a mechanism to ensure that the assets of corporate debtors under the insolvency resolution process are unencumbered and insulated from attachment by probe agencies.

A senior government official told Business Standard: “Our position is very clear … We will carve out something in the insolvency and bankruptcy code to make sure assets remain unencumbered.”

The MCA and the Enforcement Directorate (ED), which reports to the ministry of finance, have locked horns over the attachment of assets of Bhushan Power and Steel(BPSL).

While the ED says it can attach the