IBBI inadvertently puts out Aadhaar, PAN info of creditors on website; removes them later
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Last Updated: Jun 27, 2021, 05:17 PM IST
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Synopsis
A senior official said the details came into the public domain inadvertently as the regulator is working on a beta project to host the information of creditors of companies undergoing Corporate Insolvency Resolution Process (CIRP) and liquidation.
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The Insolvency and Bankruptcy Board of India (IBBI) inadvertently put out on its website Aadhaar and PAN details of creditors, including workmen, of some companies undergoing resolution process, and the issues are expected to be sorted out in the next few days.
Lenders to debt-laden companies are increasingly opting for negotiated settlements with the defaulting borrowers as the absence of time-bound resolutions, significant haircuts on advances, and a mounting pile of unresolved cases combine to dim the allure of Indias dedicated bankruptcy courts.
âIts Success May Open It For Other Borrowersâ: Experts Welcome Pre-Packaged Insolvency Process Introduced For MSMEsÂ
IBC will emerge as an invincible tool against future defaults
The Centre has promulgated the IBC Amendment Ordinance to allow a pre-packaged insolvency process for MSMEs.
Experts said that if successful, the regime may be available for other corporate borrowers.
L. Viswanathan, the Partner, Cyril Amarchand Mangaldas, said the government has cautiously introduced the pre-pack regime only for the MSME sector at this point in time, which is welcome. Depending on the success of the pre-pack regime for the MSME sector, one can expect this regime to be made available for other corporate borrowers , he added.