Open to amend IBC to address practical difficulties: Govt

Assuring that the challenges thrown up by some cases would get resolved, the minister said the government is monitoring implementation of the Code.

The Code -- which provides for a market-determined and time-bound insolvency resolution process -- became operational in December last year.

"When we see it is not practically possible to implement certain provisions (of the Code) or practically on some count the Code is silent, then we can fill the gap by way of bringing some new amendment... If we think some amendment is required, then we will consider it," Chaudhary said in an interview.

Further, the Minister of State for Corporate Affairs said that if a particular provision is harsh or unworkable, then that provision could even be omitted. It is "open for the government... to redress the grievances", he added. He was responding to a query on whether the government would amend provisions under the IBC to ensure greater say for home buyers during insolvency process of real estate firms.

"As it is a new law, some cases would throw challenges, where there would be some apprehensions, which I am sure, would get resolved as we go forward with the implementation," the minister said.

A large number of flat buyers have been left in the lurch, especially in the National Capital Region (NCR), due to long delay in deliveries amid the developers citing fund crunch. Many of them are looking for relief under the Code.

In August, the Insolvency and Bankruptcy Board of India (IBBI) had amended regulations that allowed individuals who have to receive a payment from an insolvent company to seek the claim under the Code.

According to Chaudhary, the ministry is monitoring the implementation of the Code.