MSME

No Fresh Insolvency Till Next One Year: Nirmala Sitharaman

Nirmala Sitharaman stated that minimum threshold to initiate insolvency proceedings be raised to Rs 1 crore (from Rs 1 lakh, which largely insulates MSMEs). She added the special insolvency resolution framework for MSMEs under Section 240A of the Code to be notified soon. “There is no clarity on how long it will take for companies to recover. So, this decision was taken.” She added this law will be passed as an ordinance. “We will take it to the Parliament when it resumes.”