Aatmanirbhar Bharat Package: No fresh insolvency proceedings for a year, Covid-19 related debt to be excluded from definition of Default

As part of the "Aatmanirbhar Bharat" economic package for structural reforms across sectors, Union Finance Minister, Nirmala Sitharaman has announced that COVID-19 related debts shall not be included in the category of default under the Insolvency & Bankruptcy Code, 2016.

Initiation of fresh insolvency proceedings shall also remain suspended for upto 1 year, depending on the situation of the pandemic.