Bankrupt may soon be barred from contesting polls

May 04, 2016 15:48

A bankrupt person would stand automatically disqualified from becoming a lawmaker once the new legislation that looks to slash the time it takes to wind up a dying company or recover dues from a defaulter is enacted.

According to a clause in the Insolvency and Bankruptcy Code, 2015, the bankrupt would stand disqualified from being appointed or acting as a public servant or being elected to any public office from the date of commencement of proceedings.

The draft legislation provides for disqualification unless exempted by the Adjudicating Authority.

But a 30-member Joint Committee of Parliament, headed by the BJP's Bhupender Yadav, has recommended not giving "discretion to the Adjudicating Authority to exempt the bankrupt from disqualifications".

Finance ministry officials said the government has accepted all the changes suggested by the Joint Committee, including on disqualification of the bankrupt.

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