Niti Aayog CEO Amitabh Kant has said that crony capitalism in India will come to an end with the new bankruptcy code though it was facing some teething troubles.
Commenting on the issue, Niti Aayog CEO Amitabh Kant told the media, "Insolvency and Bankruptcy Code (IBC) will ensure that the world of crony capitalism comes to an end. Earlier, you could borrow and not repay. Now if you don't pay, you lose your business."
As per reports, there had been questions on IBC as it had failed to achieve time bound completion of the resolution process on major NPA accounts released by the Reserve Bank of India. IBC had mandated 270 days time-bound resolution or send to liquidation but due to various litigations, there had been delays.
Kant said banks are going bust due to NPA and government has to bring in some discipline as it is public money.