"Finance Minister will introduce Insolvency and Bankruptcy bill in Parliament tomorrow," Economic Affairs Secretary Shaktikanta Das tweeted. He said the legislation on Goods and Services Tax (GST) will follow the bankruptcy bill. "Next GST, it's the biggest reform.
Next to GST, Bankruptcy legislation will be the biggest reform," Das said. With a view to promoting ease of doing business and spurring economic activities, a government-appointed panel had last month suggested a modern bankruptcy law to deal within 180 days the insolvency cases that may arise on account of business failures or economic downturns.
The draft legislation prepared by the panel also proposes early identification of financial distress so that steps could be taken to revive the ailing company. Finance Minister Arun Jaitley had yesterday said, "The next three days in Parliament are extremely crucial... I am going to be pushing for the insolvency and bankruptcy law before Parliament in the next three days."
The ongoing Parliament session ends on Wednesday.