ARCs seek faster recovery process, clarity in taxation

ASSET RECONSTRUCTION COMPANIES (ARCs) are looking to the forthcoming Budget for sharper tools, cleaner processes, and tax structures that genuinely reward risk capital.

- FE BUREAU

Their expectations span taxation, ease of doing business, reforms in charge registration, judicial strengthening, and the long-pending rollout of personal insolvency provisions — each aimed at accelerating recoveries and boosting investor confidence.

“Some of the measures like the pass-through status for alternate investment funds (AIFs) in respect of income from investment in security receipts (SRs) issued by ARCs, and modification of charge in respect of loans assigned to ARCs without requiring the NPAborrower’s signature, have already been examined and recommended by the RBI Committee on ARCs in 2021. We expect these to be suitably taken up in the Budget,” said Hari Hara Mishra, CEO, Association of ARCs in India.