MCA To Complete Gensol Probe In 3–5 Months, Plans IBC Amendment In Monsoon Session: Sources
The amendment, once through, will reduce procedural delays in insolvency resolutions by shifting the CCI approval timeline.
The Ministry of Corporate Affairs (MCA) is targeting to complete its investigation into Gensol Engineering and 18 affiliated entities connected to Blusmart within the next three to five months, senior government sources told NDTV Profit.
The probe, which is focused on financial and corporate governance issues, could proceed without involving the Serious Fraud Investigation Office (SFIO) if sufficient evidence is found during the MCA’s own inquiry.
Separately, the government is also preparing to introduce a key amendment to the Insolvency and Bankruptcy Code (IBC) during the upcoming Monsoon Session of Parliament.
According to MCA sources, the proposed change seeks to amend Section 31(4) of the IBC, which currently requires companies undergoing insolvency to secure prior approval from the Competition Commission of India (CCI) before the resolution plan is approved by the Committee of Creditors (CoC).
The amendment, once through, will reduce procedural delays in insolvency resolutions by shifting the CCI approval timeline.
