The Central Govt has initiated formulation of laws to secure prudential banking & help effect a culture of credit discipline including Insolvency and Bankruptcy Code, 2016 (IBC) has been enacted to create a unified framework for resolving insolvency and bankruptcy matters.
IBC,by adopting a creditor-in-saddle approach,with the interim resolution professional taking-over management of affairs of Corporate Debtor at the outset, coupled with debarment of wilful defaulters & persons with NPA a/cs from Resolution Process,changed creditor-debtor relation
Besides it, the Banking Regulation Act, 1949 has been amended to provide for authorisation to Reserve Bank of India to issue directions to banks to initiate the insolvency resolution process under IBC.
The Fugitive Economic Offenders Act, 2018 has been enacted to deter economic offenders from evading the process of Indian law by remaining outside the jurisdiction of Indian courts, provides for attachment of property of a fugitive economic offender & confiscation of his property.
To make other recovery mechanisms as well more effective, the SARFAESI Act, 2002 has been amended to provide for three months’ imprisonment in case borrower does not provide asset details, and for lender getting possession of mortgaged property within 30 days.
Six new Debts Recovery Tribunals (DRTs) have been established and the minimum pecuniary limit for filing of cases in DRTs has been revised in 2018 from Rs. 10 lakh to Rs. 20 lakh to enable focus on higher value cases in these fast-track tribunals.
Source- Tweets by FM