Parliament has passed the Insolvency and Bankruptcy Code (Second Amendment) Bill,2018 with the Rajya Sabha approving it today. The Lok Sabha had passed it earlier.

The Bill seeks to clarify that allottees under a real estate project should be treated as financial creditors.”

As per the bill, home buyers will get due representation in the Committee of Creditors that takes a call on resolution proposals, making them an integral part of the decision making process. The Bill 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 taking action against the big defaulters who have taken loan from the bank but not repay it. He said, the government is also held them accountable.

He said, the government has also brought the Fugitive offender bill so that such offender can be brought before the law.

Initiating the discussion on the bill, Jairam Ramesh of Congress supported the bill and said, the recovery rate is not healthy in cases related to resolution process. He said, through this legislation, the wilful defaulters must be called to book.

Content Source: New on Air.

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