He was at his sister’s house in Mumbai when policemen from Uttar Pradesh came knocking last month. Anuj Jain, the man in charge of managing the bankruptcy resolution of Jaypee Infratech Ltd, was arrested over fears that he might flee the country. In reality, he was in the financial capital to attend meetings at a large state-owned bank and had stayed back for a few days.
What followed was a nightmare—recalcitrant law enforcement officials, a surveillance operation gone wrong and a general lack of awareness about the protection guaranteed to resolution professionals (RPs) under India’s Insolvency and Bankruptcy Code (IBC). RPs are in charge of turning around stressed companies; they run the asset attached to the corporate debtor during the resolution period.
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