Lok Sabha approves the Bankruptcy Bill

The Lok Sabha on Thursday backed a new Bankruptcy Bill. This is a crucial step towards establishing a debt resolution regime to strengthen the hands of banks seeking to recover $120 billion in troubled loans.

The Insolvency and Bankruptcy Code 2016, passed by a voice vote, is expected to be approved by the upper house next week as the main opposition Congress party has pledged its support.

The government will now get rid of a century-old insolvency law and amend 11 laws now dealing with defaulters.

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