Call for regime to check on defaulters

The Insolvency and Bankruptcy Board (IBBI) has sought for special regulatory regime for Public Private Partnerships (PPP), said Dr. Mukulita Vijayawargiya, Whole Time Member, IBBI.

She was speaking in New Delhi 15 Dec 2017 at an ASSOCHAM conference on ‘New India Confluence for Public & Private Enterprises’.

When asked about the personal guarantors, she responded this ordnance is also an outcome of the present situation because there were resolutions applicants which themselves were defaulters.

The IBBI is expected to finalise broad contours for dealing with personal guarantors of defaulting entities at a meeting on 19 Dec 2017.

Dr Vijayawargiya said, under the court, there is a provision for personal guarantors so naturally when we have corporatisation process it is incomplete without giving right to personal guarantors to corporates.

She said that Insolvency & Bankruptcy Code has started to show results.

“Till a law is enacted to govern public private partnerships (PPP), the industry must step in with professionalism”, added Dr Vijayawargiya.

Dr. U. D. Choubey, Director General, SCOPE, pointed out that India needs a structured ownership policy for Public Sector Enterprises.

In the last five years, India has seen a decline in Public Private Partnerships, noted Dr. Choubey. fii-news.com