Operation clean-up

The Insolvency and Bankruptcy Code is one of the most important regulations in India's corporate history

The insolvency and Bankruptcy Code, which gained momentum in 2017-18, is one of the most important regulations in India’s corporate history. The new law sent a clear message to defaulting promoters: pay up or lose control of your companies. In 2017, the Reserve Bank of India identified 40 companies and directed banks to refer them to the National Company Law Tribunal for bankruptcy proceedings. Some large cases such as Bhushan Steel and Monnet Ispat have been resolved, while Essar Steel and Bhushan Power & Steel will soon see closure. With many cases ending up at the appellate tribunal and even