The Insolvency and Bankruptcy Code, 2015—one of the key elements of the Prime Minister’s ambitious Start Up India scheme, is likely to face further delay in getting approval from both Houses of Parliament.
The new bankruptcy law seeks to create a unified framework for early resolution of insolvency and bankruptcy cases in the country.
The Joint Committee of Lok Sabha and Rajya Sabha, which met on Tuesday, saw an overwhelming number of members opposing a quick review of the bill.
Congress’ Anand Sharma and KC Venugopal, BJD leader Bhartruhari Mahtab, AIADMK’s P Venugopal and Trianamool’s Kalyan Banerjee were among those who said that the panel would not be able to submit its report by the first week of the budget session as there are more than 250 clauses in the bill.
Just three days ago, Prime Minister Narendra Modi had spoken about the need to pass the bill to allow smooth closure for failed startup ventures. Modi had also spoken about the hurdles in Parliament for passing the legislation. “You should campaign in the social media to ask political parties to allow passage of key bills.
“The land bill is also pending before a joint committee as Opposition parties are not on the same board with the government. This bill is also heading in the same direction,” another leader said.