NEW DELHI: The
Cabinet
today cleared amendments to the Insolvency and
Bankruptcy
Code (IBC), incorporating changes suggested by a government appointed panel.
Minister for Law and Justice
Ravi Shankar Prasad, briefing reporters after the Cabinet meet said, "I cannot disclose anything because it's a new legislation except to reinforce that the Cabinet has approved it".
Asked if the Cabinet has cleared some relief measures for home buyers as per the recommendations of the panel, Prasad said, "there is something called constitutional protocol. An Ordinance till it is approved by the President, I cannot speak about the details".
A 14-member
Insolvency Law Committee
had made suggestions to the
Ministry of Corporate Affairs, including addressing woes of home buyers and making recoveries easier for lenders.
The panel had suggested that home buyers should be treated as financial creditors, which will allow them to equitably participate in an insolvency resolution process.
The panel has also suggested relaxations for Micro, Small and
Medium Enterprises
(MSMEs) under the IBC.
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