LS nod for insolvency and bankruptcy code

New Delhi, May 5: The Lok Sabha on Thursday gave its nod to the Insolvency and Bankruptcy Code, 2016, that seeks to improve the ease of doing business in the country. The measure seeks to overhaul the laws regulating insolvency amid a surge in bad loans. The bill will now go to the Rajya Sabha for its consent. Piloting the legislation, Minister of State for Fince Jayant Sinha called it “transformatiol” and one that will restore the balance of power between the promoters and creditors. It also seeks to amend the laws, including the Companies Act, to become an overarching legislation. Officials and experts say the passage of the legislation before May 31 can help India improve its rankings in the World Bank’s “ease of doing business index”. At present, on the parameter of resolving insolvency, India is ranked 136th among 189 countries. Once it gets the Rajya Sabha nod, the new law will give the banks “more confidence” to lend for long-term projects such as roads, ports and power plants, officials said.