Cii to al­low pro­mot­ers to bid un­der ibc if not wil­ful de­fault­ers

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Pro­mot­ers of stressed as­sets should be al­lowed to bid un­der the In­sol­vency and Bank­ruptcy Code in case they are not will­ful de­fault­ers and the com­pany has suf­fered on ac­count of sec­toral rea­sons said, CII Pres­i­dent Rakeshb­har­timit­tal. The gov­ern­ment has pro­hib­ited pro­mot­ers of loan-de­fault­ing com­pa­nies from bid­ding un­der the in­sol­vency process cit­ing eth­i­cal rea­sons.“where there is no will­ful de­fault or fraud, my view is that the pro­moter should be given a chance (to bid) if the loan de­fault is due to stress in the sec­tor,” the new CII pres­i­dent told. Terming the ris­ing non-per­form­ing as­sets (NPAS) as se­ri­ous problem, Mit­tal said if it is be­cause of the will­ful de­fault, the gov­ern­ment should take a strict ac­tion.how­ever, if the NPAS are on ac­count of stress in the sec­tor, there is a need to ad­dress the problem in an am­i­ca­ble man­ner in which bankers would have to take hair­cut.mit­tal also made a strong case for re­duc­ing in­ter­est rates by 100 ba­sis points

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