Legal fix to speed up CCI nod in IBC cases

The government is exploring urgent legislative changes to ensure swift approvals from the Competition Commission of India (CCI) for the sale of distressed assets after a Supreme Court (SC) order cast a cloud over bankruptcy rescues, two people informed of the development said.

- Gireesh Chandra Prasad

The apex court had mandated a 'non-negotiable' prior CCI nod for resolution plans involving an acquisition or merger, as well as full-fledged investigations into deals posing competition concerns.

The move to quickly undertake legislative measures comes after the Parliamentary Standing Committee on Finance, led by the Bharatiya Janata Party (BJP) lawmaker Bhartruhari Mahtab, sought clarity from the ministry of corporate affairs and the CCI, about how the regulator plans to implement the SC ruling, which could come in the way of timely approval of investments into bankrupt businesses, the persons said on the condition of anonymity.

"The government is holding consultations with the stakeholders on how best to address this. Appropriate measures will be decided quickly," said one of the two persons cited above. The measures could include changes to the Competition Act and the Insolvency and Bankruptcy Code (IBC), but the final call will be taken after the consultations, said the person.