(ET)
Finance minister Nirmala Sitharaman introduced amendments to the insolvency and bankruptcy code in Parliament Thursday, which will protect successful resolution applicants from criminal proceedings against offence committed by previous promoters, giving comfort to buyers of stressed assets.
The bill provides that no agency can attach assets of an insolvent debtor undergoing bankruptcy resolution for prior offence. “An action against the property of the corporate data in relation to an offense shall include the attachment seizure retention or confiscation of such property under such a law as may be applicable to the corporate debtor,” the bill stated.
Among other amendments cleared by the Union Cabinet on Wednesday include measures to ensure that corporate debtors undergoing resolution continue as going concerns. Licences, permits, concessions, clearances etc. cannot be terminated, suspended or not renewed during the moratorium period.
