Insolvency code amendment on cards to ensure NCLT-approved plans are obeyed

Section 29 (A) introduced to debar errant promoters and related parties from placing resolution plans

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The government plans to bar the successful bidder in a resolution process from any future bidding if it does not implement a scheme approved by the National Company Law Tribunal (NCLT). In this connection, the much-discussed Section 29A of the Insolvency and Bankruptcy Code would be amended, said sources in the know. “Dishonouring an NCLT-approved plan would be made one of the disqualification criteria under 29A,” a government source said. He said the regulations had already been changed to enable forfeiture of the earnest money deposit if an approved ...