Govt plans to sign global treaties to confiscate Vijay Mallya's overseas assets
The government said on Thursday that it plans to sign international treaties to confiscate overseas assets of wilful defaulters and recover dues of banks as the Lok Sabha passed the Insolvency and Bankruptcy Code Bil.
- May 6, 2016,
- Updated May 6, 2016 3:16 PM IST
The government said on Thursday that it plans to sign international treaties to confiscate overseas assets of wilful defaulters and recover dues of banks as the Lok Sabha passed the Insolvency and Bankruptcy Code Bill to facilitate this process in the backdrop of what is being termed the 'Mallya syndrome'.
Amid concerns expressed by members of Parliament over rising instances of wilful defaults, typified by liquor baron Vijay Mallya's case, minister of state for finance Jayant Sinha said that the bankruptcy framework and the normal procedure against them would continue in a parallel manner.
He was replying to a debate on the Bill, which seeks to update and consolidate existing laws.
The legislation is a transformational building block for the economy and there would be one law dealing with bankruptcy while doing away with, at least, 12 different legislations some of which are centuries old. This will also make the whole process more transparent, Sinha explained. The new framework would help in improving India's position in the World Bank's ease of doing business ranking, the minister added.
"We have to make cross-border treaties. We have to have an understanding with other nations that we are taking action on this defaulter. When we have a good law like this in which other nations will be clear that we are taking action by the due process of law, they will cooperate with us in attaching assets and properties in their countries.
The government said on Thursday that it plans to sign international treaties to confiscate overseas assets of wilful defaulters and recover dues of banks as the Lok Sabha passed the Insolvency and Bankruptcy Code Bill to facilitate this process in the backdrop of what is being termed the 'Mallya syndrome'.
Amid concerns expressed by members of Parliament over rising instances of wilful defaults, typified by liquor baron Vijay Mallya's case, minister of state for finance Jayant Sinha said that the bankruptcy framework and the normal procedure against them would continue in a parallel manner.
He was replying to a debate on the Bill, which seeks to update and consolidate existing laws.
The legislation is a transformational building block for the economy and there would be one law dealing with bankruptcy while doing away with, at least, 12 different legislations some of which are centuries old. This will also make the whole process more transparent, Sinha explained. The new framework would help in improving India's position in the World Bank's ease of doing business ranking, the minister added.
"We have to make cross-border treaties. We have to have an understanding with other nations that we are taking action on this defaulter. When we have a good law like this in which other nations will be clear that we are taking action by the due process of law, they will cooperate with us in attaching assets and properties in their countries.