The Lok Sabha has passed the Insolvency and Bankruptcy Code (Second Amendment) Bill 2018. The Bill amends the Insolvency and Bankruptcy Code, 2016 to clarify that allottees under a real estate project should be treated as financial creditors.
The voting threshold for routine decisions taken by the committee of creditors has been reduced from 75 per cent to 51 per cent.
For certain key decisions, this threshold has been reduced to 66 per cent. The Bill also allows the withdrawal of a resolution application submitted to the National Company Law Tribunal under the Code. This decision can be taken with the approval of 90 per cent of the committee of creditors.
Replying to a debate on the Bill, Finance Minister Piyush Goyal said, the Government is giving emphasis on resolution and liquidation will be the last resort. He said, the Insolvency Law Committee had given suggestions on 9 major issues and the Government fully accepted it.
The Finance Minister also informed the House that Government has no plans to denationalize banks.
During the debate, Congress member M Veerappa Moily claimed that the Centre is deliberately attempting to denationalise banks.