Corporate India expects the Government to take “adequate measures” to resolve issues around ‘group insolvency’, runaway and pseudo bidders inorder to further strengthen the Insolvency and Bankruptcy Code (IBC) process.
Ashok Haldia, former CA Institute Secretary and member Board of IIIPA, told BusinessLine that the Committee of Creditors should be mindful of the deterrence effect of performance security requirement and use it effectively.
Further, adequate checks need to be applied on credibility, track record and capacity of bidders before approval of resolution plan by the CoC. In case of backout, the erring bidder should be blacklisted for future bids, Haldia said.
In the recent years, there have been instances of successful bidders not honouring their commitments on approved resolution plans and this has been a point of concern for policymakers.
