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IBC Amended: What Does it Mean for the Defaulters?
November 27, 2017
As a result of the green signal given by the President Ram Nath Kovind regarding the amendment of the Insolvency and Bankruptcy Code (IBC), wilful defaulters will now be disallowed to bid for the stressed assets.
According to the new rules, certain persons including the wilful defaulters with NPAs accounts lasting for a year or longer are now ineligible for becoming resolution applicants.
According to the Section 235A, which is now added to the code under the ordinance, a provision for punishment ranging between Rs. 1 lakh and 2 crores has also been provided.
