Questions about IBC: New bankruptcy procedure is running into trouble

The purity and efficiency of the IBC process require all purchasers of assets to be on an equal footing

A resolution professional (RP) has levelled allegations, through a filing at the National Company Law Tribunal, or NCLT, against the promoters of Binani Cement. The allegations are that the promoters used fraudulent transactions to siphon off money from the company through the usual methods — loans at preferential rates and capital advances, for example. There has, as yet, been no formal investigation of these allegations, and the company itself has not had a chance to answer them properly. Thus, nothing can be said about whether they are true. However, they have been made at a fraught time for the Binani