Parliament on Wednesday passed the Insolvency and Bankruptcy Code 2016, a key reform that will make it much easier to do business in India and help the recovery of bad loans for banks. The bill, passed by the Lok Sabha last week, seeks to overhaul the laws regulating insolvency amid a surge in bad loans.
It will cover individuals, companies, limited liability partnerships and partnership firms. “Bankruptcy code creates Framework for timely revival or resolution of companies in distress. Will help all stakeholders,” Economic Affairs Secretary Shaktikanta Das said in a tweet. “It's a big day for economic reforms in India. The country moves ahead towards higher growth,” he said in another tweet.