TOPIC: Indian Economy and issues relating to planning, mobilization of resources, growth, development
4) The resolution of Bhushan Steel case, should not deflect our attention from the challenges still plaguing the bankruptcy resolution process. Analyse.(250 words)
Why this question
The recent takeover of majority stake in Bhushan steel by Tata steel has raised hopes from Insolvency and Bankruptcy Code (IBC). Bhushan Steel was one among the 12 major accounts referred to the National Company Law Tribunal at the behest of the Reserve Bank of India last year to ease the burden of bad loans on banks. The question is related to GS 3 syllabus under the following heading-
Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Key demand of the question
The question wants us to highlight the Bhushan Steel deal, and then identify and describe in detail about the challenges still faced by IBC.
Analyse- we have to identify the key issues which are hampering the loan-resolution process under IBC. We have to write in detail about these issues and explain/ describe such issues individually.
Structure of the answer
Introduction– mention the aim of IBC and also mention the Bhushan steel deal.
Body– Discuss in points, the problems/ issues still plaguing the loan resolution process under IBC.
e.g eligibility criteria, strict time limit for resolution process, not a stakeholder approach, etc.
Conclusion- Bring Out a fair, balanced and concise conclusion on the above issue and suggest a way forward.