Mamta Binani, founder member of the All India Insolvency Professional Association (AIIPA), mentioned that the association has written to the Centre seeking permission to allow promoters of small and medium enterprises to bid for teir companies against which insolvency proceedings have begun. However, it comes with a fair amount of restrictions so that fraudulent activities are kept away.
“There are quite a number of SMEs which do not have bidders. Hopefully, the government makes an exception where promoters are allowed to bid. This would save employment as well as entrepreneurship,” said Binani, during an interaction on ‘Insolvency and Bankruptcy Code, 2016’ organised jointly by the Financial Journalists Club and Press Club, Kolkata.