Lok Sabha passes IBC Bill
A Bill to amend the Insolvency and Bankruptcy Code IBC, 2016, allowing home buyers to be treated as financial creditors, was passed in the Lok Sabha...
New Delhi: A Bill to amend the Insolvency and Bankruptcy Code (IBC), 2016, allowing home buyers to be treated as financial creditors, was passed in the Lok Sabha on Tuesday amid allegations from opposition parties that some changes were intended to "help just one industry".
Finance Minister Piyush Goyal said the aim of the Insolvency and Bankruptcy Code (Second Amendment) Bill was to ensure that all cases are led to resolution instead of liquidation. He said the Insolvency Law Committee submitted its report on March 26 and every recommendation of the committee was accepted and brought into the amendment.
The Bill that seeks to replace an ordinance brought by the government earlier this year was introduced by Goyal on July 23. The Minister said the government brought the ordinance to expedite the resolution process.
"We wanted that the benefits (of committee recommendations) are quickly brought into the resolution process. I feel that the focus of the government should be on resolution, not liquidation. Liquidation should be our last option. And longer the delay in the process, greater are the chances of job loss," Goyal said in his reply during the discussion on the Bill in the Lok Sabha.
He added the necessity to bring the ordinance was also to protect the interest of home buyers who would now be treated as financial creditors. "It is the responsibility of the government to protect the interests of home buyers and that's why it was important to bring the ordinance. However, all the provisions are prospective in nature, not retrospective. So there is no question of bringing it to benefit any particular individual or industry," he said.