Government Raises Insolvency Threshold To Rs 1 Crore To Help Small Firms

Government will consider suspending Sections 7, 9, 10 of Insolvency and Bankruptcy Code for six months if the current economic situation continues

Government Raises Insolvency Threshold To Rs 1 Crore To Help Small Firms

To help small companies facing the threat of defaults due to coronavirus-related lockdown, the government on Tuesday raised the threshold that would trigger insolvency proceedings to Rs 1 crore from current Rs 1 lakh.

This raising of the threshold will help small and medium enterprises, Finance Minister Nirmala Ms Sitharaman said.

Also, the government will consider suspending Sections 7, 9, 10 of the Insolvency and Bankruptcy Code (IBC) for six months if the current economic situation continues beyond April, she said, adding this would help companies being forced into insolvency on default of loans.

Listen to the latest songs, only on JioSaavn.com