New Delhi: The Biju Janata Dal (BJD) Monday objected to introduction of Insolvency and Bankruptcy Code (Second Amendment) Bill-2018 and said that the legislation has been envisioned by the government to assist certain industries in the country.
Speaking on behalf of the party, BJD Parliamentary Party leader in the Lok Sabha Bhartruhari Mahtab said, “The Bill seeks to amend Section 33 of the Code to provide a reduced threshold from 75 per cent to 66 per cent of voting share for obtaining the approval of the Committee of Creditors for making an application to the adjudicating authority to pass a liquidation order. I stand here to oppose the introduction of this amendment,”
Mahtab told the House that while going through the bill, in Clause 25, Section 33, sub-section (ii) of the principal Act, after the words ‘decision of the Committee of Creditors’ the words‘ approved by not less than 66 per cent of voting share’ should be inserted.
He said, “…Even that is the reason why I say that this is nothing but a fixed match. Bad loan resolution is becoming deep rooted nexus between the bankers, auditors and promoters, which is undermining serious recovery.
Citing several cases of suspicious business deals and write offs of private industries, Mahtab said, “…This is a clear case of crony capitalism and loot of public money. It is bad in law. Anything that is against public good is bad in law. I oppose its introduction. Here is a case where just to help one industry, an ordinance is being brought by this government. Now, an Amendment Bill is being introduced.”
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