Mumbai: The government plans to come up with a separate legislation for registered valuers who can help arrive at better valuation of bankrupt companies under the insolvency process, Corporate Affairs Secretary Injeti Srinivas said on Saturday.
Of the 40 largest NPA accounts sent to various National Company Law Tribunals (NCLTs) since last July, which together constitute around 40 percent of over Rs 11 trillion worth of bad loans, only seven had been resolved so far, where the banks took an average haircut of over 60 percent since some accounts such as Alok Industries were bid out for only 17 percent of the money owed to lenders.
Noting that the Insolvency and Bankruptcy Code (IBC) was stabilising, Srinivas said proper valuers were the critical missing link in the process since most insolvency professionals were poorly equipped since it was a new area for them.
“You have registered valuers now. But you do not have a separate law for them. We are looking at the possibility of a separate law, say for chartered accountants, or company secretaries. We are assessing whether we can have a full- fledged law to regulate them as they are most critical in the success of the insolvency process.”
At the same event organised by industry chamber CII, MS Sahoo, chairman, Insolvency and Bankruptcy Board of India, said there was a critical role for registered valuers in the whole process.
Updated Date: Aug 19, 2018 10:36 AM