Prime Minister Narendra Modi is poised to overhaul Indian bankruptcy laws that dates back a century in a bid to get his reform agenda back on track after a series of setbacks.
This week a government-backed committee plans to submit recommendations to the finance ministry for a bill that may be tabled during the parliament session starting next month. Unifying more than four overlapping sets of rules, the code aims to slash the time it takes to wind up a dying company or recover dues from a defaulter.
“People who thrive on delays will suffer,” T.K. Vishwanathan, head of the drafting panel, said in an interview in New Delhi. “The current law is creditor-unfriendly. We will balance it.”
Modi has seen his reform agenda stall in recent months, leading to declines in stocks and the currency as China’s slowdown leads to increased global volatility. Opponents have blocked a vote on a national sales tax first proposed in 2006, and Modi backtracked in August on moves to make it easier for companies to acquire land for development projects.
