Small firms using bankruptcy code to make large customers pay back dues: Economic Survey
- Economic Survey says the IBC has paved the way for operational creditors, mostly SMEs and small vendors to use the IBC as a recovery tool
- Lenders are recovering about 43% of their dues under IBC, nearly double of what they used to under the previous system of debt recovery tribunals and other mechanisms, says the Survey
NEW DELHI : Small businesses that do not get their dues cleared on time from large business clients are making use of India’s new bankruptcy system as a recovery tool, according to the Economic Survey 2019 tabled in Parliament on Thursday by finance minister Nirmala Sitharaman.
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