Speaking at an online seminar organized by Confederation of Indian Industry (CII), Krishnamurthy SubramaniamThe Chief Economic Advisor appreciated the efforts made in fighting feudalism from the economic fabric of the country with the implementation of the Insolvency and Bankruptcy Code (IBC) in 2016. He also indicated how some stakeholders downplay the IBC’s results in the effort. To benefit oneself.
Citing the concept of dharma derived from the ancient literature of the Bhagavad Gita, Subramaniam emphasized the shift from a “I, I and I” point of view to a “socially optimal” approach. He said how he disliked the word ‘practical’ and the word that really inspired him is ‘ideal’. “From an economic point of view, the concept of religion is much more powerful than it seems. It shows that there is a much bigger goal. It makes people desire to do what is socially optimal,” he said.
Subramaniam pointed to the fact that the IBC allows actions that are conducive and benefit the entire IBC system; However, stakeholders prioritize the performance of tasks that are personally optimal for them. “Flexibility to do the tasks that benefit them, rather than the entire system, results in a rigid balance that does not allow for growth. We get stuck where we are,” he said, as per The Hindu report. .
The event organized by CII was based on the completion of five years of the Insolvency and Bankruptcy Code, 2016 and the way forward with the new law. The statements made by CEA come in the wake of several cases of highly corrupt deductions being usurped by lenders in the cases of some insolvent organisations.
As reported by HT, Bharatiya Janata Party leader and chairman of the Parliamentary Standing Committee on Finance Jayant Sinha also expressed concern over the issue and stressed the need for a code of conduct for lenders dealing with bankruptcy proceedings.
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