Categories: Business

Great relief to crisis-hit companies, reduced bankruptcy and criminal action rules

Finance Minister
Image Source: GOOGLE

new Delhi. Finance Minister Nirmala Sitharaman is presenting the fifth and final part of the Self Dependent India package today. Today steps are included for a total of 7 areas. One of which includes steps for ease of doing business. Today, the Finance Minister has announced relief for companies stuck in trouble due to Corona crisis.

According to the Finance Minister, to start the insolvency process, it has been decided to increase the minimum limit from Rs 1 lakh to Rs 1 crore. This will provide maximum protection to MSMEs. Special Insensitivity Resolution Framework for MSME will be notified soon under section 240A of IBC. At the same time, in the new bankruptcy cases, it has been decided to postpone the process of action by one year. Along with this, it has been decided to exclude the debt raised due to Kovid 19 from the definition of default under insolvency law.

At the same time, in the midst of the difficulties caused by the lockdown, a decision has been taken to keep many cases out of the criminal category due to delays and omissions in fulfilling the rules. This includes cases such as CSR reporting, deficiencies related to board reports or delays in AGM. 7 cases of companies not fulfilling the rules are excluded from the category of crimes. At the same time, steps will be taken under the second framework in 5 types of cases.

This post was published on May 17, 2020 1:19 pm

Content Team

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