Govt to push bankruptcy code in upcoming Parliament session

New Delhi: A Parliamentary panel is expected to submit its report on the Bankruptcy and Insolvency Code on April 29 and government would push for the passage of the bill in the second leg of the Budget session, Economic Affairs Secretary Shaktikanta Das said today.

"The Parliamentary Committee is expected to submit its report on April 29 and it would be endeavour of the government to get the (Bankruptcy) Bill passed in the second leg of the Budget session," he told reporters on the sidelines of a function here.

The Insolvency and Bankruptcy Code 2015, which will replace the existing bankruptcy laws, lays down a comprehensive law to deal with insolvency of corporates and simplify investors' exit.

The proposed law will cover individuals, companies, limited liability partnerships, partnership firms and proposes a time-bound framework -- 180 days, extendable by another 90 days.

Currently, it takes, on an average, more than four years to resolve insolvency in India.

On GST, Das said the government would push for the passage of the Constitution Amendment Bill pending before the Rajya Sabha during the second leg of the Budget session beginning April 25.

"We are optimistic that GST Bill will happen in the next few weeks or next few months," he said.

The GST bill has already been passed by the Lok Sabha and is pending ratification by the Upper House, where the ruling NDA does not have a majority. After approval by the Rajya Sabha, the legislation needs to be ratified by half of the 29 states so as to roll out GST possibly by October 1.

The Congress, the original author of the tax reform bill, is opposed to the current version and wants that the GST rate should be mentioned in the Constitution amendment bill. It is also pressing for setting up of an independent mechanism to resolve disputes on revenue sharing between states.

The government has support of 155 members in the 242-member Rajya Sabha, short of two-third or 162 votes needed to approve the Constitution amendment bill.