The minimum threshold to initiate insolvency proceedings raised to ₹1 crore from the earlier ₹1 lakh, which largely insulates MSMEs With an eye on further enhancement of Ease of Doing Business, FM Sitharaman has announces suspension of fresh initiation of insolvency proceedings up to one year, govt has decided to exclude COVID 19 related debt from the definition of “default" under IBC.
At the moment Ministry of Corporate Affairs has extended this by 6 months, govt intends to extend this by another 6 months. For MSMEs a special insolvency framework will be notified under section 240-A of IBC.
The minimum threshold to initiate insolvency proceedings raised to ₹1 crore from the earlier ₹1 lakh, which largely insulates MSMEs." Finance
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