WHAT’S HAMPERING THE BANKRUPTCY CODE

Need faster plugging in to restore confidence in the code

Absence of strategic players

General slowdown in the economy and overleveraged corporates, government should step in to create a better policy environment

Lack of global interest

No confidence yet in time-bound resolution, the 180 and 270 days deadline should be followed strictly

Legal challenges

Bidders and defaulting promoters are challenging the sale and orders, should set precedents fast for smooth functioning

Forced approach

RBI pushing banks to take companies to bankruptcy, should be left to banks

Unprepared bankers

No coordination amongst bankers or plans for turnaround or ready buyers, need an I-banking kind of approach

Clogged IBC infrastructure

In two years, NCLTs flooded with cases, need more NCLTs and NCLATs

Too many amendments

The Act was amended twice to include homebuyers as financial creditors and debarring promoters with one-year default; amendments should be well thought out