CII sets up COVID-19 Rehabilitation and Relief Fund

The Confederation of Indian Industries has set up funds to assist rehabilitation of micro, small and medium enterprises. The fund is to be raised from the members of the confederation.

Highlights

The MSMEs are the most affected sectors due to the outbreak of Corona Virus. This is mainly because of the steps taken to contain the virus like Lock Down, travel bans, closure of theatres, malls and educational institutions.

The GoI has launched several measures to help MSME sustain in the scenario of Lock Down.

GoI Measures

The GoI has allowed late repayment of loans by the MSMEs. The Government will suspend Section 7, Section 9 and Section 10 of the IBC code for six months if the situation is to continue till April 30, 2020.

Section 7

Under Section 7 of the Insolvency Bankruptcy Code, the creditor or the Government may file an application to initiate insolvency procedure.

Section 9

Corporate Insolvencies are initiated under this section

Section 10

The section gives powers to defaulting company to approach an adjudicating authority to declare it insolvent.

Month: Current Affairs - March, 2020