Cabinet approves amendments to insolvency and bankruptcy code

The cabinet on Wednesday gave approval to amend the Insolvency and Bankruptcy Code to prevent wilful defaulters from bidding for stressed assets, two TV channels reported citing unnamed sources.

The finance ministry had earlier asked banks to ensure that wilful defaulters were prevented from buying same stressed assets again as it strives to cut the record $147 billion soured loans accumulated in the banking sector.

Finance Minister Arun Jaitley is scheduled to brief the media later on Wednesday.