Insolvency rules to change following Subhash Chandra’s haircut: IBBI to make 4 changes

Subhash Chandra's haircut of 99.97% startled the nation as his repayment plan envisaged a return of Rs 6.25 crore against claims of Rs 22,006.57 crore. Following that astounding example, Insolvency and Bankruptcy Board of India or IBBI proposed four changes to the insolvency process for personal guarantors. These include preventing related parties from voting, investigating suspicious transactions, mandatory valuation of the guarantor's assets as well as maintaining a detailed record of creditor decisions.

Kolkata: Subhash Chandra’s haircut of 99.97% startled the nation as his repayment plan envisaged a return of Rs 6.25 crore against claims of Rs 22,006.57 crore. A single-member NCLT bench approved Subhash Chandra’s repayment plan. Following that astounding example, the Insolvency and Bankruptcy Board of India (IBBI) has proposed four changes to strengthen the........

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