Enhancing Transparency: Parliamentary Panel's Push for Better Insolvency Processes

A Parliamentary panel recommends a transparent system to track insolvency case resolution times, suggesting a central online portal and reforms to improve case effectiveness. It calls for enhanced representation for operational creditors and proposes an ESG oversight body to address challenges in the current framework.

A Parliamentary panel urged the government to establish a transparent system for tracking the time taken to resolve insolvency cases, highlighting the need for a central online portal for direct submission of resolution plans. This initiative aims to address persistent delays hampering the Insolvency and Bankruptcy Code's efficacy.

The panel emphasized the importance of improving the representation of operational creditors within the Committee of Creditors and promptly addressing complaints against resolution professionals to ensure accountability. The panel's recommendations target continual challenges like conflicts of interest and lack of transparency that hamper timely resolutions.

Additionally, the panel proposed the creation of an ESG oversight body within the corporate affairs ministry. This entity would oversee ESG disclosures, ensure compliance with standards, and penalize greenwashing to enhance the effectiveness of the country's ESG framework.

(With inputs from agencies.)