New Delhi/UNI: The entire Opposition, including the Congress, said in the Rajya Sabha on Thursday that the Insolvency and Bankruptcy Code (IBC) Bill should be changed to suit the interests of small industries, to create employment opportunities in the country and encourage economic activity.
Initiating the discussion on the 'Insolvency and Insolvency Code (Amendment) Bill 2020' in the House, Jairam Ramesh of Congress said that the current Bill obliges small traders to supply to the insolvent company. Insisting on the need to revisit this provision, he said this Bill was sent to the standing committee of Parliament and many members have written dissenting notes.
He demanded that the Finance Minister take cognisance of these grievances.
Earlier, Finance Minister Nirmala Sitharaman while tabling the Bill for discussion in the House, said it was very important to change it and an ordinance had been brought for it. The related ordinance was issued on December 28, 2019.
Mr Ramesh said the IBC Bill should be in conformity with the market and the courts so that it can remain for a long time. There were several flaws in the current Bill that must be removed. Small industries would be hurt by some provisions. The government should change the IBC in view of small industries and formulate a special policy.
He said the objective of IBC was not being fulfilled. Of the companies under its purview, 80 per cent had to be closed, while the recovery was just ten per cent. Big companies are being relieved of responsibilities and small businesses are being forced.
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