Insolvency Code amendment bill tabled in Lok Sabha
New Delhi, July 23 : A bill to amend the Insolvency and Bankruptcy Code, 2016, allowing an allottee of a real estate project to be treated as a financial creditor was introduced in the Lok Sabha on Monday, amid allegations from opposition parties that some changes were intended to "help just one industry".
The Insolvency and Bankruptcy Code (Second Amendment) Bill, 2018 was introduced by interim Finance Minister Piyush Goyal and seeks to replace an ordinance brought by the government earlier this year.
Taking part in the debate, Biju Janata Dal (BJD) member Bhartruhari Mahtab said he is opposed to the move to amend Section 33 of the Code to provide a reduced threshold from 75 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.
"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," he said.
He was supported by some other opposition members as well.
Citing the resolution process of a textile company, Mahtab said two companies had jointly submitted before the Committee of Creditors (CoC) of the textile firm to acquire the company last April but the CoC failed to gather enough votes to act on the resolution plan.
"And here the crux of the problem lies. The proposal got 70 per cent of the votes when 75 per cent were needed. The government stepped in and an ordinance amending the IBC lowered the minimum vote needed for passing a resolution plan to 66 per cent from 75 per cent," he said.
Mahtab said the government "should stand up and do away with this type of crony capitalism".
Rejecting the allegations, Goyal said these are "baseless" and the amendments will have prospective effect.
He said that when the Insolvency and Bankruptcy Code was introduced, the country's banking sector was going through a serious crisis "because of indiscriminate and absolutely baseless lending" that happened during the period 2008 to 2014.
The Minister said the banking system gave money to promoters who had no business to get loans in the first place.
He said the cases being referred to "were also loans, which were given during that period and then subsequently restructured ... because of which the banking system was in dire straits."
Goyal said the laws to recover loans were weak and banks were unable to take back money from "big people", so notices were sent to others.
"No property of factory of big people were seized... The entire responsibility is of Congress," he said.
He said the amendments had been brought on the recommendations of a committee.
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Surjewala slams Pratap Simha’s ‘vile’ remarks on CM Siddaramaiah, demands apology from BJP
Bengaluru (PTI): Congress general secretary and Karnataka in-charge Randeep Singh Surjewala on Saturday launched a sharp attack on the BJP over alleged disparaging remarks made by former Mysuru-Kodagu MP Pratap Simha against Chief Minister Siddaramaiah during an assembly bypoll campaign in Bagalkote.
Simha made the remarks while campaigning for BJP candidate Veerabhadrayya Charantimath, triggering a political row ahead of the by-elections scheduled for April 9.
Congress has fielded Umesh Meti, son of former MLA late M Y Meti, whose death necessitated the bye-election.
"Pratap Simha's vile remarks about Chief Minister Siddaramaiah in Bagalkot have exposed the BJP's despicable politics once again," Surjewala said in a social media post.
Alleging a larger political design, he added, "It is increasingly evident that Pratap Simha’s outburst is driven by desperation," and accused the BJP of using such remarks to target backward classes, Scheduled Castes, and minorities.
The Rajya Sabha member further claimed that the incident reflects a pattern within the party. "This is not one man's madness—it is the BJP’s political culture," he said, adding that the remarks were aimed at "denigrating leaders from marginalised communities".
Referring to past incidents, Surjewala said, "CM Siddaramaiah and his deputy D K Shivakumar have received death threats in the past, including one from BJP leaders who warned that their bodies would be stuffed into a refrigerator."
The Congress leader also criticised the BJP’s bypoll campaign strategy, alleging "internal contradictions".
He pointed to the party’s use of expelled MLA Basanagouda Patil Yatnal in campaigning despite earlier disciplinary action against him, accusing the BJP of resorting to "abuses and indignities" against opposition leaders.
Surjewala demanded immediate action from the BJP leadership, including Prime Minister Narendra Modi, BJP national president Nitin Nabin, state president B Y Vijayendra, and Leader of Opposition R Ashoka.
He said they must tender a public apology to Kannadigas, particularly to OBCs, SCs, and minorities, over the remarks, and urged the party to expel Simha if it does not repudiate his statements.
Surjewala also called for legal action, demanding that an FIR be registered against Simha and that strict measures be taken.
Warning of "political consequences", he said the electorate in the bypoll-bound constituencies would respond decisively if the BJP failed to apologise, asserting that voters would "teach the BJP a befitting lesson" in the elections.
There has been no immediate reaction from the saffron party yet.
