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The Government on Tuesday said that personal insolvency regime would be fully operational in India in one year from now.
Debt recovery tribunals (DRTs) in the country would be the institutional set up that would look at personal insolvency, Injeti Srinivas, Secretary, Ministry of Company Affairs (MCA) said at an event to mark the third birth anniversary of Insolvency and Bankruptcy Board of India (IBBI) here.
Srinivas also said that a non-adjudicatory process would be adopted for those with very small exposures under the proposed personal insolvency regime.
Srinivas also expressed confidence that cross border insolvency regime - based on the UNCITRAL model - would be enacted in the upcoming winter session of Parliament.
On home buyers, Srinivas also indicated that a threshold would be introduced for home buyers to trigger IBC process for real estate developer. This will ensure that no single home buyer can misuse the provisions for taking the real estate developer to the NCLT.
Later, in her address, Finance Minister Nirmala Sitharaman lauded the three year journey of the IBC, stating that this piece of legislation has been an efficient, market-driven one, enabling easier exits for those looking for a seamless mechanism to get out of their businesses.
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