Chief Economic Advisor Krishnamurthy Subramanian on Friday said that before the Insolvency and Bankruptcy Code (IBC) was implemented, there used to be feudalism.
Speaking at a virtual event organised by the Confederation of Indian Industry (CII), the CEA said, "Before IBC, there used to be feudalism where the corporate debtor took it to be his or her divine right to be in control."
"But I think the very good thing that I've actually observed now is that there is a very clear recognition that those days are gone; that you know, that feudalism actually is something that ain't coming back."
Subramanian stated that the move away from feudalism is a hard-fought battle as the earlier system enabled those in the status quo to continue benefiting from it.
The Insolvency and Bankruptcy Code, 2016 was introduced in May 2016 to resolve claims involving insolvent companies.
( With inputs from ANI )
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