18 may 2001

rbi wants sica and bifr revoked
mumbai: the reserve bank of india’s advisory group has called for setting up of bankruptcy institutions, repeal of the sick industrial company (special provisions) act (sica) and abolition of the board for industrial & financial reconstruction (bifr).

the group while reevaluating bankruptcy laws has suggested that if a company fails to pay debt of not less than rs 1 lakh, on the claim being due, as soon as the payment is asked for - the bankruptcy proceedings will immediately be operative.
the group says that the cases pending before bifr should be transferred to the bankruptcy court.