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 ... Summary
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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