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Govt introduces Bill in Lok Sabha to amend insolvency law

Business Standard  

The government has introduced a Bill in the Lok Sabha to amend the insolvency law and provide for a pre-packaged resolution process for stressed MSMEs. The proposed amendments would enable the government to notify the threshold of a default not exceeding INR 1 crore for initiation of pre-packaged resolution process. The government has already prescribed the threshold of INR 10 lakh for this purpose. The Insolvency and Bankruptcy Code (Amendment) Bill, 2021 will replace the ordinance that was promulgated on April 4 as part of efforts to provide relief for MSMEs adversely impacted by the pandemic.