'Bankruptcy Code to help timely revival of cos in distress'

NEW DELHI: Terming the Insolvency and Bankruptcy Code Bill a "game changing" reform, the Finance Ministry today said it will help timely revival of companies facing financial distress and make India a more attractive investment destination.

The Insolvency and Bankruptcy Code Bill, seeking to update and consolidate existing laws, was passed today by the Rajya Sabha. The Lok Sabha had cleared it last week.

"Bankruptcy code: Will make India a more attractive investment destination and greatly improve ease of doing business," Economic Affairs Secretary Shaktikanta Das tweeted.

Terming it as a "huge and game changing reform measure", Das said the Code creates framework for timely revival or resolution of companies in distress and will help all stakeholders.

With the passage of the Code by Parliament, there would be one law dealing with bankruptcy while doing away with at least 12 different legislations, some of which are centuries old.

"Bankruptcy code: it's a big day for economic reforms in India. The country moves ahead towards higher growth," he said, adding it will also promote entrepreneurship and innovation.

As per this law, information utilities would be created to provide creditors with information about borrowers such as how much money has been borrowed.

The information utilities would be regulated by the bankruptcy board and the information would be "almost real time".

Minister of State for Finance Jayant Sinha tweeted: "History is written today as Rajya Sabha passes Bankruptcy Bill! Thank you to MPs and officers who worked on the bill".