A ‘sincere implementation’ of laws including those dealing with insolvency and bankruptcy will ensure that there is no repetition of 2G and Satyam like scams in India, NCLT President Justice M M Kumar said today.
“There will be no repetition of Satyam or 2G… those types of things. Those things are unlikely to happen if the court is sincerely implemented,” he said here at an event organized by FICCI on ‘Insolvency and Bankruptcy Code 2016’.
He further said that bankruptcy laws are very strict in the US and Mallya type of instances cannot take place there.
If the law is implemented sincerely, it is not going to happen here also, Kumar said, adding implementation of law is a serious challenge.
National Company Law Tribunal (NCLT), which was constituted last month, has replaced Company Law Board (CLB).
Kumar said in insolvency and bankruptcy code, role of professionals is more important. He believes that the task of selecting insolvency professional should be given to the agencies.
Satyam scam was one of the biggest corporate frauds, which involves financial mis-statements to the tune of about Rs 12,320 crore.
Under the Companies Act, 2013, NCLT and its appellate tribunal were notified by the Corporate Affairs Ministry on June 1.
It has been set up at 10 locations, including the national capital, Mumbai, Kolkata, Hyderabad and Chennai.
Among others, NCLT has powers to delegate inquiry related to proceedings before it, securing assistance of a magistrate or collector to take possession of property.