{"id":4887,"date":"2022-08-20T19:51:08","date_gmt":"2022-08-20T19:51:08","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=4887"},"modified":"2025-12-31T13:59:23","modified_gmt":"2025-12-31T13:59:23","slug":"ease-of-doing-business","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/ease-of-doing-business\/","title":{"rendered":"Significantly improve \u2018Ease of Doing Business in India"},"content":{"rendered":"<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4888\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Non-Performing-Assets-NPAs-of-Banks.jpg\" alt=\"Non-Performing Assets (NPAs) of Banks\" width=\"1084\" height=\"541\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Non-Performing-Assets-NPAs-of-Banks.jpg 511w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Non-Performing-Assets-NPAs-of-Banks-300x150.jpg 300w\" sizes=\"(max-width: 1084px) 100vw, 1084px\" \/><\/h2>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69dd029dc4164\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69dd029dc4164\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/ease-of-doing-business\/#Non-Performing_Assets_NPAs_of_Banks\" title=\"Non-Performing Assets (NPAs) of Banks\">Non-Performing Assets (NPAs) of Banks<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/ease-of-doing-business\/#Bank_Loans_are_to_be_recovered_through\" title=\"Bank Loans are to be recovered through:\">Bank Loans are to be recovered through:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/ease-of-doing-business\/#Why_the_new_code_is_required_to_resolve_business_failures\" title=\"Why the new code is required to resolve business failures\">Why the new code is required to resolve business failures<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/ease-of-doing-business\/#Limitations_under_the_current_process\" title=\"Limitations under the current process\">Limitations under the current process<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/ease-of-doing-business\/#Group_Insolvency\" title=\"Group Insolvency\">Group Insolvency<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/ease-of-doing-business\/#Top_12_Defaulters\" title=\"Top 12 Defaulters\">Top 12 Defaulters<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caindelhiindia.com\/blog\/ease-of-doing-business\/#Recovery_under_IBC_vs_Other_Forums\" title=\"Recovery under IBC v\/s Other Forums\">Recovery under IBC v\/s Other Forums<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.caindelhiindia.com\/blog\/ease-of-doing-business\/#Ease_of_Doing_Business_in_India\" title=\"Ease of Doing Business in India\">Ease of Doing Business in India<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.caindelhiindia.com\/blog\/ease-of-doing-business\/#Ease_of_Doing_business_in_India_Role_of_%E2%80%98resolving_insolvency_parameters\" title=\"Ease of Doing business in India &amp; Role of \u2018resolving insolvency\u2019 parameters\">Ease of Doing business in India &amp; Role of \u2018resolving insolvency\u2019 parameters<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.caindelhiindia.com\/blog\/ease-of-doing-business\/#Objectives_of_the_Code_IBC_2016_%E2%80%93_Timeline\" title=\"Objectives of the Code IBC, 2016 &#8211;\u00a0Timeline\">Objectives of the Code IBC, 2016 &#8211;\u00a0Timeline<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.caindelhiindia.com\/blog\/ease-of-doing-business\/#Preamble_States_of_IBC_Code\" title=\"Preamble States of IBC Code :\u00a0\">Preamble States of IBC Code :\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.caindelhiindia.com\/blog\/ease-of-doing-business\/#Introduction_to_IBC_and_Regulatory_Framework\" title=\"Introduction to IBC and Regulatory Framework :-\">Introduction to IBC and Regulatory Framework :-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.caindelhiindia.com\/blog\/ease-of-doing-business\/#Key_Highlights_of_Insolvency_Bankruptcy_Code_2016\" title=\"Key Highlights of Insolvency &amp; Bankruptcy Code, 2016\">Key Highlights of Insolvency &amp; Bankruptcy Code, 2016<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.caindelhiindia.com\/blog\/ease-of-doing-business\/#The_IBC_code_seeks_to_amend_the_following_11_laws\" title=\"The IBC code seeks to amend the following 11 laws:\">The IBC code seeks to amend the following 11 laws:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.caindelhiindia.com\/blog\/ease-of-doing-business\/#Benefits_of_Insolvency_Bankruptcy_Code_2016\" title=\"Benefits of Insolvency &amp; Bankruptcy Code, 2016\">Benefits of Insolvency &amp; Bankruptcy Code, 2016<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.caindelhiindia.com\/blog\/ease-of-doing-business\/#IFCCL_Services\" title=\"IFCCL\u00a0 Services\">IFCCL\u00a0 Services<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Non-Performing_Assets_NPAs_of_Banks\"><\/span><span style=\"color: #ff0000;\"><strong><u>Non-Performing Assets (NPAs) of Banks<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Gross Non-performing assets (GNPAs) of\u00a0banks\u00a0are expected to Cross \u20b910 lakh Crore by March 2022, an ASSOCHAM-CRISIL Joint Study.<\/p>\n<p>&#8220;NPAs\u00a0are expected to rise to <strong>8.5-9 percent by March 2022<\/strong>, driven by slippages in Retail, Micro, Small and Medium Enterprise (MSME) Accounts, besides some Restructured Assets,&#8221;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Bank_Loans_are_to_be_recovered_through\"><\/span><span style=\"color: #000080;\"><strong><u>Bank Loans are to be recovered through:<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Earlier \u2013Filing of Cases in Civil Courts.<\/li>\n<li>Compromise \u2013 Bank, and Borrower.<\/li>\n<li>SARFEASI, 2002.<\/li>\n<li>DRT \/ DRAT.<\/li>\n<li>Through Lok Adalat.<\/li>\n<li>Write-Off the Loans.<\/li>\n<li>Sale to ARCs.<\/li>\n<li>IBC 2016<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4889\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Bank-Loans-are-to-be-recovered-through.png\" alt=\"Bank Loans are to be recovered through\" width=\"1065\" height=\"1111\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Bank-Loans-are-to-be-recovered-through.png 455w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Bank-Loans-are-to-be-recovered-through-287x300.png 287w\" sizes=\"(max-width: 1065px) 100vw, 1065px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_the_new_code_is_required_to_resolve_business_failures\"><\/span><span style=\"color: #ff0000;\"><strong><u>Why the new code is required to resolve business failures<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4890\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Why-the-new-code-is-required-to-resolve-business-failures.png\" alt=\"Why the new code is required to resolve business failures\" width=\"1081\" height=\"654\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Why-the-new-code-is-required-to-resolve-business-failures.png 468w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Why-the-new-code-is-required-to-resolve-business-failures-300x181.png 300w\" sizes=\"(max-width: 1081px) 100vw, 1081px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Limitations_under_the_current_process\"><\/span><span style=\"color: #000080;\"><strong><u>Limitations under the current process<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4891\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Limitations-under-the-current-process.png\" alt=\"Limitations under the current process \" width=\"1083\" height=\"858\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Limitations-under-the-current-process.png 467w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Limitations-under-the-current-process-300x238.png 300w\" sizes=\"(max-width: 1083px) 100vw, 1083px\" \/><\/p>\n<p><span style=\"color: #000080;\"><strong><u>Why and How It Happens?<\/u><\/strong><\/span><\/p>\n<ul>\n<li>Liquidity Problem<\/li>\n<li>Delay in Operations<\/li>\n<li>Disruption in Operation<\/li>\n<li>Delay in Payment<\/li>\n<li>Operational Loss<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong><u>Kingfisher Airlines \u2013 Case Study<\/u><\/strong><\/span><\/p>\n<ul>\n<li>Kingfisher launched in 2005<\/li>\n<li>Nov-2005 : Ordered 30 Airbus Planes<\/li>\n<li>Year-2006 \u2013 Despite Losses \u2013 KFA ordered more 5 Airbus<\/li>\n<li>Year-2011 \u2013 Bankers agreed to lend another Rs.8000 crores to restructure loans.<\/li>\n<li>Year-2009 \u2013 Despite Losses \u2013 Launched International Routes<\/li>\n<li>Year-2007 \u2013 Despite Losses \u2013 Buys 26% stake in Deccan Airlines.<\/li>\n<li>Dec-2011 \u2013 Chairman CBEC considering legal Action against KFA.<\/li>\n<li>Year-2012 \u2013 Kingfisher starts cancelling flights and Service Tax Dept frozen around 40 Bank A\/Cs of KFA. And delay in salary to employees of KFA.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Group_Insolvency\"><\/span><span style=\"color: #000080;\"><strong><u>Group Insolvency<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Group Insolvency is a framework where if multiple entities of a single corporate group go insolvent, their resolutions can be consolidated in one court so that firstly, the group can be restructured as a whole, and secondly, its combined assets can be utilized in the best interest of both the group corporate and the debtor.<\/li>\n<li>This structure allows substantive consolidation which enables the clubbing of assets and liabilities of the group members in a way that they can be treated as a single economic organism.<\/li>\n<li>The Insolvency and Bankruptcy Code (\u2018Code\u2019) provides detailed provisions to deal with the insolvency of a corporate debtor on a standalone basis, it does not envisage a framework to either synchronize insolvency proceedings of different corporate debtors in a group or resolve their insolvencies together.<\/li>\n<li>Consequently, the insolvency of different corporate debtors belonging to the same group is dealt with through separate insolvency proceedings for each corporate debtor.<\/li>\n<li>However, in the insolvency resolution of some corporate debtors, special issues arose from their interconnections with other group companies. While the Code is silent about group insolvency, the courts are trying to fill in this lacuna through judicial pronouncements.<\/li>\n<li>Group Insolvency can be tackled by either Procedural Co-ordination or Substantive Consolidation. The process of procedural co-ordination is what the Indian courts have adopted in most group insolvency cases that have been tackled.<\/li>\n<li>The Insolvency and Bankruptcy Board of India (\u2018IBBI\u2019) constituted a Working Group on Group Insolvency on January 17, 2019, which submitted its recommendations for the framework of the procedure of group companies as \u2018Report of the Working Group on Group Insolvency\u2019 on September 23, 2019.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Top_12_Defaulters\"><\/span><span style=\"color: #000080;\"><strong><u>Top 12 Defaulters<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table width=\"100%\">\n<tbody>\n<tr>\n<td width=\"6%\"><strong>S.no.<\/strong><\/td>\n<td width=\"22%\"><strong>Name of CD<\/strong><\/td>\n<td width=\"29%\"><strong>Successful Resolution applicant<\/strong><\/td>\n<td width=\"12%\"><strong>Amount\u00a0 Admitted<\/strong><\/p>\n<p><strong>(in cr)<\/strong><\/td>\n<td width=\"13%\"><strong>Amount\u00a0 Realised<\/strong><\/p>\n<p><strong>(in Rs cr)<\/strong><\/td>\n<td width=\"14%\"><strong>% of Claims\u00a0 Released<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"6%\"><strong>1<\/strong><\/td>\n<td width=\"22%\">Electrosteel Steels Limited<\/td>\n<td width=\"29%\">Vedanta Limited<\/td>\n<td width=\"12%\">13175<\/td>\n<td width=\"13%\">5320<\/td>\n<td width=\"14%\"><strong>40.38<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"6%\"><strong>2<\/strong><\/td>\n<td width=\"22%\">Bhushan Steel<\/p>\n<p>Limited<\/td>\n<td width=\"29%\">Bamnipal Steel Limited<\/td>\n<td width=\"12%\">56002<\/td>\n<td width=\"13%\">35571<\/td>\n<td width=\"14%\"><strong>63.50<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"6%\"><strong>3<\/strong><\/td>\n<td width=\"22%\">Monnet Ispat &amp; Energy<\/p>\n<p>Limited<\/td>\n<td width=\"29%\">Consortium of JSW and<\/p>\n<p>AION Investments Pvt. Lt<\/td>\n<td width=\"12%\">11015<\/td>\n<td width=\"13%\">2892<\/td>\n<td width=\"14%\"><strong>26.26<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"6%\"><strong>4<\/strong><\/td>\n<td width=\"22%\">Essar Steel India Limited<\/td>\n<td width=\"29%\">Arcelor Mittal India Pvt Limited<\/td>\n<td width=\"12%\">49473<\/td>\n<td width=\"13%\">41018<\/td>\n<td width=\"14%\"><strong>82.91<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"6%\"><strong>5<\/strong><\/td>\n<td width=\"22%\">Alok Industries Limited<\/td>\n<td width=\"29%\">Reliance Industries Ltd., JM<\/p>\n<p>Financial Asset Reconstruction\u00a0 Company Ltd.<\/td>\n<td width=\"12%\">29523<\/td>\n<td width=\"13%\">5052<\/td>\n<td width=\"14%\"><strong>17.11<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"6%\"><strong>6<\/strong><\/td>\n<td width=\"22%\">Jyoti Structures Limited<\/td>\n<td width=\"29%\">Group of HNI led by Mr Sharad<\/p>\n<p>Sanghi<\/td>\n<td width=\"12%\">7365<\/td>\n<td width=\"13%\">3691<\/td>\n<td width=\"14%\"><strong>50.12<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"6%\"><strong>7<\/strong><\/td>\n<td width=\"22%\">Jaypee Infratech Limited<\/td>\n<td width=\"29%\">NBCC (India) Ltd<\/td>\n<td width=\"12%\">23176<\/td>\n<td width=\"13%\">23223<\/td>\n<td width=\"14%\"><strong>100.20<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"6%\"><strong>8<\/strong><\/td>\n<td width=\"22%\">Bhushan Power and steel\u00a0 Limited<\/td>\n<td width=\"29%\">JSW Ltd.<\/td>\n<td width=\"12%\">47158<\/td>\n<td width=\"13%\">19350<\/td>\n<td width=\"14%\"><strong>41.03<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Recovery_under_IBC_vs_Other_Forums\"><\/span><span style=\"color: #000080;\"><strong><u>Recovery under IBC v\/s Other Forums<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 488px;\" width=\"1055\">\n<tbody>\n<tr>\n<td colspan=\"2\" width=\"650\"><strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong><strong>Lok Adalats\u00a0 DRT\u2019s\u00a0 SARFEASI\u00a0 IBC<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"325\"><strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Recovery %<\/strong><\/p>\n<p><strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 FY 2018<\/strong><\/td>\n<td width=\"325\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <strong>Recovery %\u00a0<\/strong><\/p>\n<p><strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 FY 2019<\/strong><\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td width=\"325\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4%<\/td>\n<td width=\"325\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 5%<\/td>\n<\/tr>\n<tr>\n<td width=\"325\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 5%<\/td>\n<td width=\"325\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3%<\/td>\n<\/tr>\n<tr>\n<td width=\"325\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 32%<\/td>\n<td width=\"325\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 14%<\/td>\n<\/tr>\n<tr>\n<td width=\"325\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 50%<\/td>\n<td width=\"325\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 43%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Ease_of_Doing_Business_in_India\"><\/span><span style=\"color: #ff0000;\"><strong><u>Ease of Doing Business in India<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>According to the Ease of Doing Business Report 2020, India\u2019s overall ranking has improved by 67 places to 63rd position among 190 countries since the inception of the Code.<\/li>\n<li>With this India earned a place among the world\u2019s top ten improvers in ease of doing business, for the third consecutive\u00a0 year<\/li>\n<li>The Code has improved the India\u2019s ease of doing business\u2019s ranking and also has resulted in better realization of dues by the\u00a0 creditors<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Ease_of_Doing_business_in_India_Role_of_%E2%80%98resolving_insolvency_parameters\"><\/span><span style=\"color: #000080;\"><strong><u>Ease of Doing business in India &amp; Role of \u2018resolving insolvency\u2019 parameters<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 368px;\" width=\"1080\">\n<tbody>\n<tr>\n<td width=\"20%\"><strong>Particulars<\/strong><\/td>\n<td width=\"15%\"><strong>2016<\/strong><\/td>\n<td width=\"17%\"><strong>2017<\/strong><\/td>\n<td width=\"16%\"><strong>2018<\/strong><\/td>\n<td width=\"19%\"><strong>2019<\/strong><\/td>\n<td width=\"11%\"><strong>2020<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"20%\"><strong>Rank\u00a0\u00a0 in<\/strong><\/p>\n<p><strong>Resolving\u00a0 Insolvency<\/strong><\/td>\n<td width=\"15%\">136<\/td>\n<td width=\"17%\">136<\/td>\n<td width=\"16%\">103<\/td>\n<td width=\"19%\">108<\/td>\n<td width=\"11%\">52<\/td>\n<\/tr>\n<tr>\n<td width=\"20%\"><strong>Time (yrs)<\/strong><\/td>\n<td width=\"15%\">4.3<\/td>\n<td width=\"17%\">4.3<\/td>\n<td width=\"16%\">4.3<\/td>\n<td width=\"19%\">4.3<\/td>\n<td width=\"11%\">1.6<\/td>\n<\/tr>\n<tr>\n<td width=\"20%\"><strong>Recovery\u00a0 Rate (Cents in\u00a0 dollar)<\/strong><\/td>\n<td width=\"15%\">25.7<\/td>\n<td width=\"17%\">26<\/td>\n<td width=\"16%\">26.4<\/td>\n<td width=\"19%\">26.5<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/td>\n<td width=\"11%\">71.6<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Objectives_of_the_Code_IBC_2016_%E2%80%93_Timeline\"><\/span><span style=\"color: #000080;\"><strong><u>Objectives of the Code IBC, 2016 &#8211;\u00a0<\/u><\/strong><\/span><span style=\"color: #000080;\"><strong><u>Timeline<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 554px;\" width=\"1078\">\n<tbody>\n<tr>\n<td width=\"150\"><strong>\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a02014<\/strong><\/td>\n<td width=\"150\"><strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2015<\/strong><\/td>\n<td width=\"150\"><strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2016<\/strong><\/td>\n<td width=\"150\"><strong>\u00a0\u00a0\u00a0\u00a0\u00a0 2016<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"150\">August 2014 Bankruptcy Law\u00a0 \u00a0 \u00a0 \u00a0 Recovery Committee was formed.<\/p>\n<p><strong><u>\u00a0<\/u><\/strong><\/td>\n<td width=\"150\">&nbsp;<\/p>\n<p>Nov\u00a0 2015\u00a0 &#8211;\u00a0\u00a0\u00a0 Draft bill\u00a0 submitted by BLRC<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>Dec 2015 &#8211; IBC Bill was\u00a0 introduced in Lok\u00a0 Sabha<\/p>\n<p><strong><u>\u00a0<\/u><\/strong><\/td>\n<td width=\"150\">05 May 2016 &#8211; Passed by Lok Sabha.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>11 May 2016- Passed by Rajya Sabha<\/p>\n<p>&nbsp;<\/td>\n<td width=\"150\"><strong><u>\u00a0<\/u><\/strong><\/p>\n<p>28 May 2016-Received President\u2019s accent.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>01 Dec 2016 &#8211; IBC came in to effect.<\/p>\n<p><strong><u>\u00a0<\/u><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li>The Insolvency and Bankruptcy Code, 2016 (\u201cCode\u201d) which seeks to streamline and consolidate bankruptcy, insolvency, and liquidation laws in India were introduced in Lok Sabha on December 21, 2015, by Finance Minister, Late Shri. Arun Jaitley.<\/li>\n<li>Subsequently, after the incorporation of several comments given by the Joint Committee of Parliament the Code was finally passed by Lok Sabha and Rajya Sabha on May 5, 2016, and May 11, 2016, respectively.<\/li>\n<li>Finally, the Code received the assent of the President on the 28th of May 2016.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Preamble_States_of_IBC_Code\"><\/span><span style=\"color: #000080;\"><strong><u>Preamble States of IBC Code :\u00a0<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><em>\u201cConsolidate and amend the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms, and individuals in a time-bound manner for maximization of value of assets of such persons, to promote entrepreneurship, availability of credit, and balance the interests of all the stakeholders including alteration in the order of priority of payment of Government dues and to establish an Insolvency and Bankruptcy Board of India, and for matters connected therewith or incidental thereto\u201d.<\/em><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Introduction_to_IBC_and_Regulatory_Framework\"><\/span><span style=\"color: #000080;\"><strong><u>Introduction to IBC and Regulatory Framework :-<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Restructuring laws in India prior to IBC, 2016.<\/li>\n<li>Objectives of the Code.<\/li>\n<li>Scheme of the Code.<\/li>\n<li>Four Pillars of IBC, Insolvency Professionals.<\/li>\n<li>Insolvency Professionals Agencies (IPAs).<\/li>\n<li>The Insolvency and Bankruptcy Board of India.<\/li>\n<li>Adjudicating Authorities: NCLT, NCLAT, and the Supreme Court of India.<\/li>\n<li>Insolvency Professional Entities.<\/li>\n<li>Legal and Regulatory Framework of the Code.<\/li>\n<li>Bankruptcy Law Reforms Committee.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Key_Highlights_of_Insolvency_Bankruptcy_Code_2016\"><\/span><span style=\"color: #000080;\"><strong><u>Key Highlights of Insolvency &amp; Bankruptcy Code, 2016<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #000080;\"><strong><u>Objective behind the Code:<\/u><\/strong><\/span><\/p>\n<ul>\n<li>This code seeks to consolidate and amend laws relating to reorganization \/ revival and insolvency resolution of Corporate Persons, Partnership Firms and Individuals in a time bound manner.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"The_IBC_code_seeks_to_amend_the_following_11_laws\"><\/span><span style=\"color: #000080;\"><strong><u>The IBC code seeks to amend the following 11 laws:<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Indian Partnership Act, 1932.<\/li>\n<li>Central Excise Act, 1944.<\/li>\n<li>Income Tax Act, 1962.<\/li>\n<li>Recovery of Debts due to banks and financial Institutions Act, 1993.<\/li>\n<li>Finance Act, 1994.<\/li>\n<li>Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.<\/li>\n<li>Sick Industrial Companies (Special Provisions) Repeal Act, 2003.<\/li>\n<li>Payment and settlement System Act, 2007.<\/li>\n<li>Limited Liability Partnership Act, 2008.<\/li>\n<li>Companies Act, 2013.<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong><u>Repeal 2 Laws<\/u><\/strong><\/span><\/p>\n<ul>\n<li>Presidency Towns Insolvency Act, 1909.<\/li>\n<li>Provincial Insolvency Act, 1920<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Benefits_of_Insolvency_Bankruptcy_Code_2016\"><\/span><span style=\"color: #000080;\"><strong><u>Benefits of <\/u><\/strong><strong><u>Insolvency &amp; Bankruptcy Code, 2016<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Time bound settlement of Insolvency.<\/li>\n<li>The Insolvency and Bankruptcy Board of India will keep watch.<\/li>\n<li>Banks and Asset reconstruction companies immediate gainers.<\/li>\n<li>Locked-up assets will be freed.<\/li>\n<li>Comprehensive Coverage \u2013 Companies, Partnerships, LLP, Individuals and more can be added.<\/li>\n<li>Faster turnaround of Businesses<\/li>\n<li>Database of serial Defaulters.<\/li>\n<li>Shift from Equity to Debt.<\/li>\n<li>Creation of Bankruptcy Regulator.<\/li>\n<li>Protect workers<\/li>\n<li>New Class of Insolvency Professionals.<\/li>\n<li>Lift lender comfort.<\/li>\n<li>Significantly improve \u2018EASE OF DOING BUSINESS\u2019.<\/li>\n<\/ul>\n<p><span style=\"color: #333399;\"><strong>You may also review the other article <\/strong><\/span><\/p>\n<ul>\n<li><a href=\"https:\/\/www.caindelhiindia.com\/learn\/four-pillars-of-the-insolvency-bankruptcy-code\">Four Pillars of the Insolvency &amp; Bankruptcy Code<\/a><\/li>\n<li><a href=\"https:\/\/www.caindelhiindia.com\/blog\/category\/insolvency-and-bankruptcy-code\/\">Category: Insolvency and Bankruptcy Code<\/a><\/li>\n<li><a href=\"https:\/\/www.caindelhiindia.com\/blog\/checklist-of-compliance-requirements-for-rps\/\">checklist of compliance requirements for RPs under IBC<\/a><\/li>\n<li><a href=\"https:\/\/www.caindelhiindia.com\/blog\/initiation-of-liquidation-under-the-ibc\/\">Overview on Initiation of Liquidation under the IBC<\/a><\/li>\n<li><a href=\"https:\/\/www.caindelhiindia.com\/learn\/penalty-insolvency-professional-under-ibc-regulations\">Penalty Insolvency Professional under IBC regulations.<\/a><\/li>\n<li><a href=\"https:\/\/www.caindelhiindia.com\/blog\/afa-under-ibc\/\">Overview on Mandatory Requirement of AFA under IBC Code<\/a><\/li>\n<li><a href=\"https:\/\/www.caindelhiindia.com\/blog\/dos-donts-for-ips-during-moratorium-under-ibc\/\">Do\u2019s &amp; Don\u2019ts for IPs During Moratorium under IBC<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/blog\/tag\/ibc-regulation\/\">IBC Regulation<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/services\/ibc-help-homebuyers.php\">IBC Help Homebuyers<\/a><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"IFCCL_Services\"><\/span><span style=\"color: #000080;\"><strong>IFCCL\u00a0 Services<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>India Financial Consultancy Corporations Pvt Ltd offer a range of services as per your needs : &#8211;\u00a0<\/strong><\/p>\n<ol>\n<li><strong><em>Risk Management and Internal Audit<\/em><\/strong>: Review of Operations, Illustrative Coverage in Business Processes, Management Issues tailored as per your needs.<\/li>\n<li><strong><em>Taxation<\/em><\/strong>: Transactional advice and tax planning relating to Corporate, Non-Corporate Entities etc.<\/li>\n<li><strong><em>Advisory Services<\/em><\/strong>: Business Strategy, Corporate Restructuring, Corporate Finance, Shareholder Wealth Management, Corporate Governance, Building Accounting Manuals, Global Accounting Services.<\/li>\n<li><strong><em>Valuations<\/em><\/strong>: Business Valuation, Real Estate, Brands, Intangible Assets, Securitization etc.<\/li>\n<li><strong><em>Financial Reporting &amp; Compliances<\/em><\/strong>: Setting Up, Running and Supervising Financial Accounting, Tax Payments (Direct, Indirect and Employee Related), including MIS, Interim Financial Statements, Data Analytics and More\u2026<\/li>\n<li><strong><em>Regulatory Filings<\/em><\/strong>: Filings with MCA (ROC), RBI, FEMA, FCRA, Municipal Corporation, Sub Registrar<\/li>\n<li><strong><em>Legal Advisory &amp; Support<\/em><\/strong>: We support in managing your litigations by coordinating with lawyers on our panel or as identified by client to offer support and systematic approach.<\/li>\n<li><strong>IBC Services<\/strong> : We offer solutions related to IBC related services, like handling matters relating to Resolution Plan and related compliances under Corporate Insolvency Resolution Process (CIRP) and Pre-packaged Insolvency Resolution Process (PP-IRP).<\/li>\n<li><strong><em>Family Office Service<\/em><\/strong>: Overall taxation impact minimization.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Non-Performing Assets (NPAs) of Banks The Gross Non-performing assets (GNPAs) of\u00a0banks\u00a0are expected to Cross \u20b910 lakh Crore by March 2022, an ASSOCHAM-CRISIL Joint Study. &#8220;NPAs\u00a0are expected to rise to 8.5-9 percent by March 2022, driven by slippages in Retail, Micro, Small and Medium Enterprise (MSME) Accounts, besides some Restructured Assets,&#8221; Bank Loans are to be &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[658],"tags":[892],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4887"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=4887"}],"version-history":[{"count":4,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4887\/revisions"}],"predecessor-version":[{"id":9866,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4887\/revisions\/9866"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=4887"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=4887"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=4887"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}