Loading...

Top
Help
×

By creating an account you can:

Logo TaxTMI
Call Us / Help / Feedback

Contact Us At :

E-mail: [email protected]

Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters 0/2000
Make Most of Text Search
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
  6. Text Search
  7. The system will try to fetch results that contains ALL your words.
  8. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
  9. Text Search
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
❮❮ Hide
Default View
Expand ❯❯
Close ✕
🔎 News - Adv. Search
TEXT SEARCH:

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In:
Main Text + AI Text
  • Main Text
  • Main Text + AI Text
  • AI Text
Category: ?
Categorized by AI
---- All Categories ----
  • ---- All Categories ----
  • Income Tax
  • GST
  • Customs, DGFT & SEZ
  • FEMA & RBI
  • Corp. Laws, SEBI & IBC
  • PMLA, Black Money & ED
  • Budget
  • News and Press Release
  • PTI News
Month:
---- All Months ----
  • ---- All Months ----
  • January
  • February
  • March
  • April
  • May
  • June
  • July
  • August
  • September
  • October
  • November
  • December
Year:
---- All Years ----
  • ---- All Years ----
  • 2026
  • 2025
  • 2024
  • 2023
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
Relevance Default Date
    Enabling Filing of Appeals in Cases Involving NIL or Zero Demand Amount
    DGFT Introduces Open API Facility for Certificate of Origin on the Trade Connect e-Platform
    Amid global turmoil, India maintained momentum of its economic growth, says Amit Shah
    Zaggle Brings Cricket and Business Together in Hyderabad; Hosts Padma Bhushan Dr. Sunil Gavaskar
    AI may accelerate anti-competitive practices in digital markets: CCI chief
    Union Minister of Commerce and Industry Shri Piyush Goyal Calls for India to Emerge as a Global Medical and Healthcare Destination
    Union Minister of Commerce and Industry Shri Piyush Goyal Calls for Trained Caregivers and Wider Hospital Participation in Heal in India Gateway
    Rupee falls 7 paise to close at 94.50 against US dollar
    India Must Build Resilient, Globally Integrated Healthcare Supply Chains: Commerce and Industry Minister Shri Piyush Goyal at Bharat Health Global Exp...
    Rupee rises 4 paise to 94.39 against US dollar in early trade
    Jantar Mantar student stir, mass struggles could impact Assembly polls: MA Baby
    FDA awaiting response from restaurants at Mumbai Cricket Association premises: Mundhe
    India emerges as key diesel supplier to Europe as Russian, US flows falter
    Trump keeps heralding an economic boom, but even a solid jobs report is causing problems for him
    Telangana CM urges TCS'' HyperVault to launch its Hyderabad AI data centre by June 2028
    CBI FIR against Subhash Chandra for 'inflating' net worth to secure Rs 980 Cr in loans
    TCS subsidiary HyperVault to invest Rs 70,000 cr to develop Hyderabad AI data centre
    CBI FIR against Subhash Chandra for 'inflation' of net worth to secure nearly Rs 1,000-cr in loans
    Union Minister of Commerce & Industry Shri Piyush Goyal Calls for Nationwide FTA Utilisation Drive to Expand India’s Global Trade Footprint
    Union Minister of Commerce & Industry Shri Piyush Goyal Calls Upon Automotive Industry to Deepen Localisation, Expand Exports and Prepare to Serve Glo...
❯❯
Maximize Maximize Maximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

+

Are you sure you want to delete "My most important" ?

NOTE:

News
Showing Results for :
Reset Filters
Results Found:
Show All Summaries Hide All Summaries
September 7, 2026
Show AI Summary
Appeals against NIL or Zero GST demand orders are enabled where taxpayers paid liabilities before issuance of the order.
GST Portal validation restricting appeals against demand orders showing NIL or Zero demand has been removed where a liability dispute exists and the taxpayer made payment before issuance of the demand order. Taxpayers may challenge such orders by filing an appeal in Form GST APL-01, and may raise a ticket with the GST Helpdesk if filing difficulties arise.
September 7, 2026
Show AI Summary
Certificate of origin API integration enables exporters to submit applications, receive certificates, verify issuance, and reduce repetitive data entry.
Open API integration for Certificates of Origin enables eligible exporters to connect ERP, accounting and other business software with the Trade Connect e-Platform for electronic application submission. The facility covers preferential and non-preferential certificates, provides authentication, file-submission and certificate-verification APIs, and maintains a transaction ledger for application tracking. Security measures include digital signatures, password hashing, IP whitelisting and time-limited access tokens. Relevant origin criteria, fields and validation rules are automatically applied according to the selected trade agreement or certification scheme.
September 7, 2026
Show AI Summary
Free trade agreements and strategic partnerships were identified as supporting India's trade engagement and economic growth amid geopolitical disruption.
India's international economic engagement through free trade agreements and strategic partnerships was identified as a means of sustaining economic growth amid geopolitical disruption. Economic cooperation was described as extending across defence, technology, energy, investment and trade. Nine free trade agreements were stated to have been concluded by 2026, with further trade arrangements proposed with other countries. Pursuit of free trade agreements was linked to increasing trade and to reported first-quarter GDP growth in the financial year 2026-27.
September 7, 2026
Show AI Summary
Leadership, talent recognition and legacy framed a discussion linking cricketing performance with entrepreneurship and organisational responsibility.
No FEMA or RBI regulatory measure, compliance obligation, legal interpretation, or adjudicatory determination is identified. The subject matter concerns leadership, performance and entrepreneurship, with emphasis on preparation, decision-making under pressure, teamwork, recognising potential and supporting talent. Corporate success is linked with creating opportunities, contributing to society and building a lasting legacy. Zaggle is described as providing enterprise spend management, card-based financial products through banking partnerships and software offerings for corporate customers.
September 7, 2026
Show AI Summary
AI-driven digital markets require competition scrutiny of autonomous pricing, self-preferencing, discriminatory pricing, tying, and market manipulation.
Artificial intelligence may accelerate anti-competitive conduct in digital markets through self-preferencing, discriminatory pricing, tying and market manipulation. Agentic AI may create particular concerns where it monitors competitors' prices and autonomously responds without direct human intervention. Competition law aims to prevent anti-competitive practices, promote competition, protect consumers and preserve freedom of trade, while allowing legitimate growth and innovation. Market dominance is not objectionable in itself; concern arises from abuse of dominance through exclusionary or exploitative practices.
September 7, 2026
Show AI Summary
Healthcare innovation and supply-chain self-reliance are prioritised through trade access, investment, research collaboration, testing infrastructure, and quality standards.
Healthcare-sector development priorities seek to expand medical devices, diagnostics, digital health, research, and pharmaceutical machinery through exports, import substitution, and services growth. Free trade agreements are presented as supporting preferential market access, services opportunities, and mobility. Sectoral growth is linked to startup incubation, intellectual-property capability, international research collaboration, technology transfer, and joint ventures. Healthcare self-reliance requires indigenous equipment, critical components, resilient supply chains, shared testing and certification infrastructure, and uncompromising quality standards.
September 7, 2026
Show AI Summary
Medical value tourism quality standards prioritise verified hospitals, ethical treatment, transparent pricing, and seamless international patient care.
Medical value tourism is proposed to expand through trained caregivers, transparent treatment packages, ethical hospital practices, seamless reimbursement and cashless-payment systems, telemedicine, and verified hospital participation. International patients are intended to receive care through accredited quality systems, supported by interpreters, global outreach, and coordinated healthcare networks. Expansion beyond metropolitan areas must maintain equivalent high-quality care for domestic and foreign patients without discrimination. Certification systems are expected to remain professionally independent and free from unethical influence.
September 7, 2026
Show AI Summary
Foreign exchange market pressures from rising crude oil and weak domestic equities constrained rupee support from foreign inflows.
Foreign exchange market conditions caused the rupee to depreciate against the US dollar despite support from FCNR dollar inflows and a softer dollar. Rising crude oil prices, weak domestic equities and global headwinds constrained gains. The outlook remained dependent on foreign inflows, dollar movements, crude prices, market sentiment and inflation data, with geopolitical tensions capable of increasing pressure on the currency.
September 7, 2026
Show AI Summary
Healthcare supply-chain resilience requires diversified sourcing, global investment, domestic innovation, and stronger medical-device production supported by enabling infrastructure.
Healthcare supply-chain resilience requires diversified sourcing, restoration of domestic capacity in Active Pharmaceutical Ingredients and Key Starting Materials, and continued imports where necessary through multiple suppliers and geographies. Pharmaceutical industry growth should move beyond generics towards research, development, patented products, new molecules, biosimilars and biotechnology. Regulatory convergence should support clinical trials, patenting and new-product introduction. Government support is contemplated for medical value travel, healthcare infrastructure, bulk drug parks, plug-and-play facilities, medical-device component production and scientific validation of Ayush products.
September 7, 2026
Show AI Summary
Foreign exchange market pressures offset rupee support from FCNR inflows amid higher crude oil and dollar demand.
The rupee gained marginally against the US dollar, supported by FCNR-related dollar inflows and robust liquidity. Elevated Brent crude prices, safe-haven dollar demand and geopolitical tensions constrained this support. Higher oil prices may enlarge India's import bill, increase dollar demand and pressure the rupee, although rising foreign-exchange reserves indicated external-sector strength.
September 6, 2026
Show AI Summary
Census data privacy and electoral integrity concerns emerge alongside calls to repeal insolvency law and protect political dissent.
CPI(M) called for repeal of the Insolvency and Bankruptcy Code, alleging that insolvency processes enabled diversion of public resources. It questioned economic growth figures against agricultural weakness, mining contraction, higher input costs, inflation, unemployment and malnutrition. The party also raised Census data privacy concerns over caste-data collection, potential linkage with government databases, and possible implications for citizenship, electoral rolls and future delimitation.
September 6, 2026
Show AI Summary
Food business licensing: Third-party restaurant operators require their own licences and cannot operate under another entity's registration.
Food Business Operator licensing requires the entity holding a food licence or registration to itself conduct the licensed food business at the specified premises. A third-party operator cannot operate under another entity's licence or registration and must obtain its own licence or registration. Regulatory notices concerning such arrangements may also address hygiene lapses and structural violations, followed by consideration of the operators' responses.
September 6, 2026
Show AI Summary
European diesel supply dependence on alternative refiners grows amid constrained exports, weakening transatlantic flows, and restricted shipping routes.
European diesel supply is becoming increasingly dependent on Indian refining capacity as Russian diesel and gasoil exports remain constrained by export restrictions, refinery disruptions and port outages, while US shipments to Europe have weakened. Alternative supply routes offer limited additional clean-product volumes because reduced tanker crossings and lower ship-to-ship transfers offshore Oman constrain flows through the Strait of Hormuz. Low diesel inventories, seasonal demand and planned refinery maintenance increase exposure to supply disruptions.
September 5, 2026
Show AI Summary
Tariff-driven inflation and elevated borrowing costs constrain growth, while durable deficit reduction may require spending restraint and tax increases.
Persistent inflation, elevated interest rates and rising public debt constrain economic growth policy. Tariffs and oil shortages are identified as contributing to inflationary pressures, while lower interest rates could increase money flows and worsen inflation. Tariffs, tax cuts, artificial intelligence productivity gains and anti-fraud measures are advanced as mechanisms to support growth, investment and domestic employment. Fiscal sustainability, however, cannot be achieved through growth alone where social security and healthcare costs exceed revenue growth; deficit reduction may require slower spending, spending reductions and tax increases.
September 5, 2026
Show AI Summary
AI data centre development receives state support for a high-capacity campus and accelerated commissioning timetable.
HyperVault's proposed artificial-intelligence data-centre campus in Hyderabad is planned on 264 acres, with investment projected at up to Rs 70,000 crore and capacity of up to 1 GW. The campus is intended to provide high-density, liquid-cooled computing infrastructure for frontier AI companies and hyperscalers. Telangana's Chief Minister sought inauguration by June 2, 2028, while assuring required governmental sanctions and support. The project is estimated to create 7,000 jobs.
September 5, 2026
Show AI Summary
Inflated net-worth certificates allegedly enabled secured lending, triggering fraud, breach-of-trust and asset-stripping allegations after default.
Alleged inflation of net-worth certificates is said to have induced approval and disbursal of two corporate loan facilities aggregating Rs 980 crore, each secured by continuing personal guarantees. The facilities subsequently defaulted. The FIR alleges that materially higher net-worth representations made in 2018 were later contradicted during insolvency proceedings, and attributes the lending to collusion among the guarantor, borrower entities and their officers. Allegations include cheating, creation of false documents, misappropriation and misapplication of loan funds, breach of trust, and asset stripping intended to frustrate recovery.
September 5, 2026
Show AI Summary
AI data centre infrastructure investment enables phased deployment of high-density, liquid-cooled computing capacity using green and water-neutral design.
HyperVault plans to develop an artificial intelligence data-centre campus on 264 acres in Hyderabad, with capacity of up to 1 GW and investment by HyperVault and its partners of up to Rs 70,000 crore. The facility is intended to provide high-density, liquid-cooled computing infrastructure for frontier AI companies and hyperscalers. Development will proceed in phases according to customer demand and technology requirements, incorporating green-energy use and water-neutral design principles.
September 5, 2026
Show AI Summary
Alleged inflation of personal net worth underpins fraud and breach-of-trust accusations over secured corporate lending.
CBI registration of an FIR concerns allegations that inflated personal net-worth certificates were used to secure corporate loan facilities from Life Insurance Corporation Housing Finance Ltd. The lender alleges that the certificates influenced lending decisions, the facilities subsequently defaulted, and later insolvency proceedings disclosed inconsistency between the represented and asserted net-worth figures. Allegations include collusion with borrower entities, false documentation, cheating, misappropriation of loan funds, and breach of lender trust.
September 5, 2026
Show AI Summary
Free trade agreement utilisation requires district-level exporter support, rules-of-origin assistance, standards compliance, and coordinated market-access outreach nationwide.
Free Trade Agreement utilisation is to be advanced through coordinated action by central and state governments, sectoral ministries, Export Promotion Councils, industry associations and local export-support institutions. Preferential treatment is assessed against tariff rates faced by competing countries, while export competitiveness depends on scale, quality, customer trust and timely delivery. The Export Promotion Mission supports export credit, digitised compliance and FTA documentation, including rules-of-origin certification. District-level identification of products, clusters, new exporters and practical constraints, supported by workshops and rapid online facilitation, is intended to deepen market access.
September 5, 2026
Show AI Summary
Automotive localisation and export competitiveness are prioritised through global-standard manufacturing, technology partnerships, sustainable mobility, and government infrastructure support.
Automotive-sector localisation, export expansion and global-standard manufacturing are prioritised to strengthen India's role in global production and trade. Companies are urged to invest in technology, innovation, research and development, use domestic scale for overseas markets, and avoid supplying inferior products domestically. Trade agreements are positioned as channels for market access, technology absorption and exports. Greater indigenisation is encouraged through component localisation, technology collaborations and expanded exports, supported by critical minerals, batteries, indigenous energy sources, research funding, plug-and-play infrastructure and industrial ecosystems.

News

Back

All News

Showing Results for :
Reset Filters
No Records Found

News

Showing Results for : Reset Filters

Resolution of Stressed Assets and IBC – the Future Road Map (Speech by Shri Swaminathan J, Deputy Governor, Reserve Bank of India - January 10, 2024 - at the Conference on Resolution of Stressed Assets, and IBC organised by CAFRAL in Mumbai)

January 17, 2024

Contents
Summary
Note

Note

-

Bookmark

Print

Print

Director, CAFRAL, Shri B P Kanungo; Shri N S Vishwanathan former Deputy Governor RBI, Smt. Indrani Banerjee, Additional Director CAFRAL, Shri Diwakar Gupta, Senior Advisor, CAFRAL, distinguished guests from the financial fraternity; and ladies and gentlemen.

1. I am delighted to be present here at this very topical Conference on Resolution of Stressed Assets and Insolvency and Bankruptcy Code – the Future Road Map. The IBC notified in May 2016 introduced a comprehensive legislation that introduced a paradigm shift in the landscape of insolvency and bankruptcy proceedings in India, bringing in a more structured, institutionalised and time-sensitive approach to resolving financial distress.

2. The IBC has been in operation for almost eight years now. Although this time frame is not very significant in the life cycle of a legislation, the IBC has been an evolving law with several amendments since its enactment. Last year, the Ministry of Corporate Affairs released a public consultation paper proposing several amendments including mandatory admission of applications where default is established, increasing reliance on records submitted by Information Utilities, streamlining the resolution process, etc. These as well as some other proposals on the IBC have been a subject matter of discussion among professionals, bankers, legal fraternity, regulators and other stakeholders. So, it is an opportune time to review the working of the IBC and discuss its future course. I am happy to note that CAFRAL has assembled an illustrious list of speakers covering eminent jurists, policy makers, bankers and resolution professionals who will enrich this seminar with their varied perspectives.

3. Let me start this series of sessions and discussion by sharing some of my own perspectives on this landmark legislation and the road ahead.

Paradigm change brought in by the IBC

4. Before the implementation of the IBC, there existed a fragmented legal framework which resulted in protracted and inefficient insolvency proceedings. Various laws and regulations, each dealing with distinct aspects of insolvency and bankruptcy, co-existed, creating complexities, overlaps, and occasional contradictions. In the absence of a comprehensive law, the RBI too had attempted to fill the void with a series of schemes such as Corporate Debt Restructuring (CDR) Scheme, Strategic Debt Restructuring (SDR), Scheme for Sustainable Structuring of Stressed Assets (S4A), etc. These schemes, sometimes fondly referred to as an ‘Alphabet Soup’ in some sections of the media, attempted to emulate the desirable features of an insolvency legislation.

5. The IBC was enacted to fill the legal void felt by the absence of a comprehensive insolvency law. Its salient features included a unified and time-bound resolution process, establishment of resolution focussed adjudicating authorities such as the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT), as well as the establishment of the Insolvency and Bankruptcy Board of India (IBBI) to ensure effective regulation of insolvency proceedings and professionals. The IBC also facilitates corporate insolvency resolution through the formation of a Committee of Creditors (CoC) and a structured liquidation process if resolution is not achieved within the specified time, thus contributing to a more streamlined and transparent system.

6. In my view, the IBC meets the five principal criteria1 of an efficient resolution regime, namely:

  1. Firstly, the resolution regime should prioritise going concern status over liquidation. Resolution on a going concern basis is generally more valuable than liquidation of the entity.

  2. Secondly, it should force the creditors to come together and work out a resolution plan that tries to preserve the value by looking at the options to keep the company as a going concern.

  3. Thirdly, the resolution regime should ensure a time bound resolution so that value deterioration for the creditors of an insolvent exposure is arrested.

  4. Fourthly, it must provide claw back of questionable transactions that may have contributed to the financial stress of the defaulting borrower.

  5. Finally, an effective resolution regime should protect the majority creditors from the minority by forcing a ‘cramdown’ if the majority creditors decision covers a predefined threshold of approval.

Positive outcomes

7. The outcomes of the Code have also played out reasonably well so far. This has brought in substantial efficiency in the resolution process and improvement in recovery rates for financial creditors.

8. From a banker’s and supervisor’s perspective, amongst the various improvements brought in by the IBC, the fundamental shift from a ‘debtor in possession’ to a ‘creditor in control’ model is perhaps one of the most impactful. There is growing evidence to suggest that debtors are avoiding defaults due to a credible threat of loss of control of their businesses. I believe this improved credit discipline has inter-alia also contributed to the marked decline in the non-performing assets of banks witnessed in the last few years.

Challenges and Criticism

9. IBC, while significantly transforming the insolvency landscape, has encountered challenges and criticisms. Timely resolution, a crucial goal of the IBC, faces obstacles may be due to certain operational inefficiencies, leading to delays in the resolution process. Concerns have been raised about the infrastructure, staffing, and overall capacity of the NCLT and the NCLAT, impacting the effectiveness of the resolution mechanism. Evolving provisions for cross-border insolvency also contribute to the areas where the IBC has faced difficulties.

10. It is also observed that there are certain discussions playing out about the recovery percentage through IBC process. The point to be noted is that the IBC is a resolution framework rather than a recovery framework and any commentary based solely on recovery percentages may overlook the broader objectives and achievements of this transformative legislation. While recovery may be an essential component, the true strength of the IBC lies in its objective to resolve corporate financial stress, preserve enterprise value, protect the interests of various stakeholders, and thereby contribute to the overall economic stability. Therefore, a nuanced evaluation that considers the transformative impact on corporate behaviour, the efficiency of the resolution process, and the preservation of business value is essential for a comprehensive understanding of the IBC's success and effectiveness.

The Way Forward

11. India is aspiring to become a developed country by 2047. But, for that to happen, we need to fully utilise all the available resources in the country, be it the demographic advantage, or the physical resources. One of the important enablers of faster economic growth is the ease of doing business.

12. An orderly resolution framework is closely related to the ease of doing business, influencing the business environment in several ways. Businesses operate in a dynamic environment where there may be success or failure. An orderly resolution process allows for smoother exit. It reduces capital erosion and facilitates efficient recycling of capital. Further, an orderly resolution mechanism instils confidence in investors by providing a transparent and predictable process for handling financial distress.

13. Businesses rely on credit for their operations and expansion. Orderly resolution and credit cost are interlinked elements within the financial ecosystem. The Expected Loss is a key factor that determines this credit cost. Expected Loss in turn is driven by the ‘probability of default’ and more pertinently to today’s context on resolution, the ‘loss given default’ or LGD. Therefore, there is a need to make resolution process efficient to minimise the LGD. Further, when lenders have the confidence that they can recover their money more reliably and in a timely manner, they are more inclined to lend which boosts the flow of credit in the economy, thereby supporting business and economic growth.

14. From a banker’s perspective, it starts at the underwriting stage itself. Bankers base their decision on the viability of the borrower. However, there is a need to also factor in the possibility of a stress leading to resolution and potential challenges the lenders may face in realisation of assets, at the underwriting stage itself.

15. At the resolution stage, as major creditors, banks also participate in the Committee of Creditors or CoCs which is entrusted with critical decisions regarding the resolution process. The CoC representation requires a diverse skill set spanning financial acumen, legal understanding and industry knowledge. Further, given the time bound nature of the process, the CoCs need to act with a sense of purpose making a pragmatic assessment of available options and deciding swiftly. Therefore, banks need to ensure that their nominees are empowered with adequate authority and experience. Their active involvement in sharing of information, evaluating and approving resolution plans as well as collaboration with resolution professionals and other stakeholders is imperative in ensuring timely resolution.

16. The success of IBC also hinges on the expertise and proficiency of skilled resolution professionals. They need to be equipped with a thorough knowledge of the law as well as have a sound understanding of the nuances of finance apart from strong negotiation and management skills. I believe the Insolvency and Bankruptcy Board of India is already conducting various programmes to impart the specialised skills and knowledge required for resolution professionals. The Indian Banks Association and CAFRAL can also assist and collaborate with IBBI in such initiatives for effective capacity enhancement.

17. From the Government and Judiciary’s side, there is a pressing need to invest in building the capacity of adjudicating authorities, such as the NCLT and the NCLAT, to handle an increasing caseload efficiently. Adequate staffing, training, and infrastructure of these institutions will go a long way in expediting resolution. In fact, last year the Government took measures to fill up vacancies and it is understood that proposals to increase the strength of adjudicating authorities is also under consideration. Efforts could also be made to reduce delays at the admission stage itself as well as rationalising the processes. For instance, I understand that one of the proposals in this regard is the streamlining of data submission to the Information Utilities (IUs) and allowing admission based on data available with IUs. Innovative technology-based solutions are also being explored to facilitate faster disposal of cases.

18. The introduction of new laws often brings about a period of adjustment and interpretation as stakeholders, legal professionals, and the judiciary grapple with the intricacies of the legislation. In the context of the IBC, this phenomenon is heightened due to the significant stakes involved. Parties involved in insolvency proceedings do file appeals and review petitions challenging lower court decisions. While there is no objection to any party seeking legitimate legal recourse, these proceedings have often been used as delaying tactics by defaulting borrowers and has significantly contributed to delays in the resolution timeline. One hopes that as the law matures, judicial interpretation and precedents would emerge to help navigate the nuances, ultimately reducing delays in future. It is conceivable that certain judicial interpretations may prompt the need for further reforms, aiming to enhance the efficiency and improve the outcomes of the resolution regime.

19. From a reform agenda perspective, there are also some aspects of IBC that merit further legislative consideration. For instance, there is a need to look at resolution of conglomerates and addressing resolution of corporate groups. Very often such groups have intricate corporate structure with inter-connected related party relationship that add to the complexity and become a hurdle in individual entity resolution. Similarly, there is the unfinished agenda of a comprehensive resolution framework for financial service providers such as banks, non-banking financial companies and insurance companies. In the absence of an IBC like legislative framework for resolution of financial institutions, the IBC has been used for resolution of NBFCs. I would imagine that this conference will get to debate these and several other measures that can be thought about to bring in a more efficient IBC process in the days to come.

Conclusion

20. To conclude, the IBC is a landmark legislation which completely transformed the insolvency and resolution framework in the country. There is a visible improvement in the credit culture as evident from the marked decline in NPAs and increased resolutions even before the admission stage. Further, significant foundational work has been done by the Government and it is expected that the next set of reforms once legislated by the Parliament would further strengthen the IBC. However, there is always scope for improvement, especially with regard to the timeliness of the resolution process.

21. With these closing remarks, I once again thank CAFRAL for this opportunity to share my thoughts here today. I am sure the deliberations and insights shared by esteemed participants will contribute to the wealth of knowledge in the field of insolvency and bankruptcy, fostering innovative solutions and paving the way for a more robust and efficient financial landscape. I sincerely hope that the outcomes of this conference will not only benefit the participants but will also have a far-reaching impact on the broader economic ecosystem. Wishing the organizers, speakers, and participants a truly enlightening and successful event ahead. Thank you.

------

1 Resolution of Stressed Assets and IBC, Speech delivered by Shri M Rajeshwar Rao, Deputy Governor, RBI on April 30, 2022 at the International Research Conference on Insolvency and Bankruptcy held at IIM Ahmedabad.

Topics

Acts Income Tax