“Public Comments” on the Sick IBC (2016) to the IBBI
“Public Comments” on the Sick IBC (2016) to the IBBI
“Public Comments” on the Sick IBC (2016) to the IBBI
Posted on 27th June, 2024 (GMT 16:40 hrs)
Dear DHFL Victims,
Nearly four days ago, we found the following report on the Insolvency and Bankruptcy Board of India (IBBI):
Insolvency and Bankruptcy Board clampdown on personal guarantors in bid to bolster creditor rights VIEW HERE ⤡ (As reported on 24th June, 2024 ©Telegraph)
In the report, it was said that:
“This lacuna in the system is underscored by the dismal recovery rate of merely 2.16 per cent for creditors from PGs under the Insolvency and Bankruptcy Code (IBC), according to the IBBI.
Seeking to bridge this gap and strengthen the CIRP process, the IBBI has invited stakeholder feedback by July 10 on a series of proposals.”
Since we had already made our voices clear on the IBC (2016) in our previous posts, we proceeded to find the portal to lodge the public comments with the help of the following PDF Guide:
The portal is given as follows:
https://ibbi.gov.in/webfront/format_for_liquidation_process.php
We have already lodged the following comment:
I, as a deranged FD Holder of the Dewan Housing Finance Corporation Limited (DHFL), have faced all the options mentioned in the “Select Comment Option” with regard to the functioning of the IBC (2016). The Code has been amended multiple times, which points to its inherent shortcomings. I have suffered from huge haircuts on my invested amount. The problems in this context are:
1. There are incommensurabilities of the provisions of the Code with other existent laws, viz., the Indian Contract Act, the Recovery of debts due to Banks and Financial Institution Act 1993, the Securitizations and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI), 2002, the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA), the RBI Act. There are several inconsistencies within the Code as well, Cf. URLs given below.
2. The RBI took the DHFL case as a “test case” for legitimizing the IBC, since the DHFL was not supposed to go into the IBC as a solvent, ongoing AAA-rated concern. It is a violent state of laboratory where the guinea pigs are the DHFL FD and NCD Holders.
3. Certain DHFL victims had smelled the rat in the biased and prejudiced RBI-appointed CoC for DHFL’s resolution process as pointed out by the Hon’ble NCLAT on an order dated 27.01.2022 in response to 63 Moons’ case that found several material irregularities in the exercise of the powers of the resolution professionals of DHFL as well as “contrary to law” areas in the “approved” resolution plan of Mr. Ajay Piramal’s PCHFL that ignores the Section 66 of the IBC that provides for the benefit of all the creditors. The Hon’ble NCLT earlier in 19.05.2021 had requested the DHFL-CoC to reconsider the erstwhile promoters’ settlement proposal that guaranteed full repayment, but the same was ignored by the DHFL-CoC and PCHFL. The DHFL-CoC totally lacked transparency during the CIRP.
4. The resolution process under the IBC is too lengthy and expensive. The expenses are taken from the victims; even if there would be any future litigation against the CoC, the CoC professionals would defend themselves against the victims’ demands by utilizing the allotted money that has been extracted from the victims’ blood itself.
5. It seems to me that the IBC has been placed for effectuating an organized loot in favour of the chosen few crony business tycoons in a predetermined way. Moreover, as it was thought that the IBC is an omniscient, omnipotent, omnipresent and autonomous Code, on the contrary, the de facto is that it is far from being the case. The Code is verily subject to two quasi-judicial bodies and the apex court of law.
After suffering since 2019, I demand that the ill-conceived IBC should be scrapped to uphold the business-related human rights (as recognized by the UN) of the small depositors like us. My financially abused condition goes against Article 21, since my Rights to Life and Liberty are infringed.
*URLs* for further information and evidence:
i) For Scrapping the IBC with its inconsistencies/incoherent spaces:
ii) On the RBI-appointed CoC for DHFL:
iii) On the DHFL Scam:
b) https://onceinabluemoon2021.in/2022/10/15/the-chronology-of-the-dhfl-scam/
Our Online Mass-petition in favour of the DHFL Victims:
We received the following after submitting the comment:
FEEL FREE TO ADD, MODIFY, ALTER THE ABOVE TEXT TO SEND IT TO THE IBBI WITHIN THE 10TH OF JULY, 2024 IN ORDER TO REGISTER OUR LEGITIMATE DEMANDS AND CONCERNS.
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