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Individual borrowers to be brought under Insolvency code

ANI  |  New Delhi [India] 

Ministry of Corporate Affairs Secretary on Wednesday noted that individual borrowers would be brought under the ambit of the and Code, 2016 (IBC) in due time.

Speaking to media here along the sidelines of a conference organised by the (CII) here, Srinivas said any amendments made to the code would be prospective in nature.

"A number of changes have been suggested to the law. However, in case amendments are implemented, they would be prospective in nature. However, revised bids which are submitted under the resolution process after the amendments are in force will have to follow the new requirements. Individual borrowers will be included in the in the near future in phases," he said.

Highlighting 12 specific cases pending for resolution, Srinivas claimed that out of the Rs.9 crore involved in these cases, at least Rs.4 crore is being pupmped back into the system.

"The has managed to smoothly replace the old fragmented resolution system. We don't want the resolution time limit to be breached. Competition is seen in the big 12 cases undergoing resolution. Once these are resolved, insolvency process will gather pace. Out of Rs.9 crore involved, we are looking to bring back atleast Rs.4 crore into the system," he said.

Talking about the volume of non-performing assets (NPA) in the economy, Srinivas stated that it is critical to tackle the matter in order to keep the robust.

"As per the (RBI), Rs.9.5 lakh crore is locked up in NPAs along with 15 percent of It is critical to arrest these trends for the sake of the economy," said Srinivas.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, April 04 2018. 21:30 IST