Government clarified that the Insolvency and Bankruptcy Code, 2016 (IBC) does not have provisions for declaring companies as “corrupt” and is not applicable to cooperative societies. Specifically, no company named “Barshi Textile Mills” in Osmanabad Parliamentary Constituency is admitted under the IBC. Consequently, inquiries regarding its status, income, expenditure over the last decade, reasons for closure since 2019, or worker payments are not applicable. No proposals for restarting the mill have been received, nor are there pending actions related to worker payments under the purview of the IBC.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 1053
ANSWERED ON MONDAY, FEBRUARY 10, 2025/ MAGHA 21, 1946 (SAKA)
COMPANIES DECLARED CORRUPT UNDER INSOLVENCY AND BANKRUPTCY CODE, 2016
QUESTION
1053. SHRI OMPRAKASH BHUPALSINH ALIAS PAVAN RAJENIMBALKAR:
Will the Minister of CORPORATE AFFAIRS be pleased to state:
(a) the number of public sector companies in cooperative sector in Maharashtra have been declared corrupt under Insolvency and Bankruptcy Code, 2016;
(b) the status of Barshi Textile Mills in Osmanabad Parliamentary Constituency;
(c) the details of income and expenditure of Barshi Textile Mills during the last ten years along with the reasons for the closure since 2019;
(d) whether the Government has received any proposal to restart the said mills and if so, the details thereof along with the action taken thereon;
(e) whether the payment of the workers of the said company is pending and if so, the period of such pendency; and
(f) the immediate steps taken by the Government to make payment to the workers?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS AND MINISTER OF
STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS
[HARSH MALHOTRA]
(a) There is no provision of declaring any company as “corrupt” under the Insolvency and Bankruptcy Code, 2016. Further, the Code does not apply to cooperative societies.
(b) No company in the name of “Barshi Textile Mills” is admitted under the Insolvency and Bankruptcy Code, 2016 till date.
(c) to (f): Does not arise in view of (b) above.
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