Centre mulls time-bound e-bidding process to speed up IBC resolution
The central government is mulling the idea of introducing a short, time-bound, online financial bidding process in corporate insolvency cases to improve transparency and reduce litigation. The deliberation is going on with regard to the issue after the considerable delays were witnessed in the insolvency process.
As per the current process, the company's creditors, which are undergoing insolvency proceedings, are allowed to individually negotiate with potential bidders. The entire process results in offers getting revised and the final bids coming in after the deadline and associated litigation which further delays the entire process of insolvency, the Economic Times reported.