(a) whether the Government proposes to wind up Board for Industrial and Financial Reconstruction (BIFR);
(b) if so, the details thereof alongwith the reasons therefor; and
(c) the Department/Agency that would take over the work being performed by BIFR so far?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)
(a) : Yes, Sir.
(b) : The Sick Industrial Companies (Special Provisions) Repeal Act, 2003, (Act 1 of 2004) provides for winding up of the Board for Industrial and Financial Reconstruction (BIFR). The deficiencies noticed in the operation of SICA, inter-alia, included:
i) Restrictive definition of sickness;
ii) Sfow pace of BIFR intervention; and
iii) Delays in winding up of sick companies .
(c): The Companies (Second Amendment) Act, 2002 provides, inter-alia, for setting up of the National Company Law Tribunal under the Ministry of Company Affairs.