Some breather for MSME
- Minimum threshold to initiate insolvency proceedings has been raised to INR 1 crore (from INR 1 lakh, which largely insulates MSMEs).
- Special insolvency resolution framework for MSMEs under Section 240A of the Code will be notified soon.
- Suspension of fresh initiation of insolvency proceedings up to one year, depending upon the pandemic situation.
- Empowering Central Government to exclude COVID 19 related debt from the definition of “default” under the Code for the purpose of triggering insolvency proceedings.
Some good reading from Times of India dated 18-May-2020
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