Loan defaulters can participate in bidding under the insolvency proceedings after paying due interest and making their bad loan accounts operational. The government cannot allow loan defaulters to “merrily walk back” by paying a fraction of the due amount, he said while replying to a debate in the Lok Sabha on the Insolvency and Bankruptcy Code Amendment Bill, 2017, which was later passed by a voice vote.
The ineligible persons or entities will include undischarged insolvent, wilful defaulter and those whose accounts have been classified as non-performing asset. These persons, however, can become “eligible to submit a resolution plan” if they clear all the overdue amounts with interest and other charges relating to their NPA accounts.
Mr Gogoi had said that NPAs, which were low during the UPA regime, have escalated during the rule of the present government. Gogoiji has studied in good educational institutions of the world and he must have many times heard of the proverb that there were three types of lies lies, damned lies and statistics. Today he has himself become a victim of the third one.