Nirmala Sitharaman Presents Union Budget 2024-2025
Focus on Insolvency and Bankruptcy Reforms
Union Minister for Finance and Corporate Affairs Nirmala Sitharaman presented the Union Budget for 2024-2025, highlighting the Modi Government’s third-term priorities. The budget focuses on ensuring ‘ease of doing business’ and strengthening the Insolvency and Bankruptcy ecosystem.
The Finance Minister proposed the creation of an Integrated Technology Platform to improve outcomes under the Insolvency and Bankruptcy Code (IBC). This platform aims to ensure consistency, transparency, timely processing, and better oversight for all stakeholders.
Nirmala Sitharaman noted that the IBC has resolved more than 1,000 companies, resulting in a direct recovery of over Rs 3.3 lakh crore to creditors. Additionally, 28,000 cases involving over Rs 10 lakh crore have been disposed of before admission.
She also proposed reforms and strengthening of the tribunal and appellate tribunals to speed up insolvency resolution. Additional tribunals will be established, with some exclusively deciding cases under the Companies Act.
Expert Opinions
Samir Sheth, Partner & Head, Deal Advisory Services, BDO India, stated, “Setting up additional tribunals to deal with IBC cases is a welcome step that will expedite the resolution process. An integrated technology platform will help in the timely dissemination of information and bring efficiencies in the IBC process.”
Ramesh K. Vaidyanathan, Managing Partner, BTG Advaya, added, “The proposed integrated platform is a welcome move as it will bring accountability and improve speed. Earmarking some tribunals exclusively for cases under the company’s law is also a positive step. However, ensuring that vacancies are filled quickly and competent members are appointed is crucial.”
Doubts Revealed
Nirmala Sitharaman -: Nirmala Sitharaman is the Finance Minister of India. She is responsible for managing the country’s finances, including presenting the Union Budget.
Union Budget -: The Union Budget is a financial plan presented by the government every year. It shows how the government plans to spend money and where it will get the money from.
Insolvency and Bankruptcy -: Insolvency means not being able to pay back debts. Bankruptcy is a legal process to help people or companies who can’t pay their debts.
Ease of doing business -: This means making it simpler for people to start and run businesses. It includes reducing paperwork and making rules easier to follow.
Integrated Technology Platform -: This is a digital system that helps manage and improve processes. In this case, it will help with insolvency and bankruptcy cases.
Insolvency and Bankruptcy Code (IBC) -: The IBC is a law in India that helps resolve insolvency and bankruptcy cases quickly and fairly.
Tribunals -: Tribunals are special courts that deal with specific types of cases. Here, they will handle insolvency and bankruptcy cases to speed up the process.
Creditors -: Creditors are people or organizations that lend money. They expect to be paid back with interest.
Rs 3.3 lakh crore -: This is a large amount of money, equal to 3.3 trillion rupees. It shows how much money has been recovered for creditors through the IBC.