Penalties for fraudulent initiation of pre pack insolvency process now permit imposition of prescribed monetary sanctions by adjudicating authority. The amendment adds a sub section to section 65 providing that if a person initiates the pre packaged insolvency resolution process fraudulently or with malicious intent for a purpose other than resolution, or with intent to defraud any person, the Adjudicating Authority may impose upon such person a penalty which shall not be less than one lakh rupees, but may extend to one crore rupees.
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Provisions expressly mentioned in the judgment/order text.
Penalties for fraudulent initiation of pre pack insolvency process now permit imposition of prescribed monetary sanctions by adjudicating authority.
The amendment adds a sub section to section 65 providing that if a person initiates the pre packaged insolvency resolution process fraudulently or with malicious intent for a purpose other than resolution, or with intent to defraud any person, the Adjudicating Authority may impose upon such person a penalty which shall not be less than one lakh rupees, but may extend to one crore rupees.
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