The government will examine the Insolvency and Bankruptcy Code (IBC) to stop defaulting promoters from wresting back control of companies by exploiting apparent loopholes. This follows developments in two high-profile cases – Siva Industries and Holdings Ltd and Dewan Housing Finance Corp. Ltd (DHFL NSE 0.56 %).

The government is likely to conduct its review in consultation with the Insolvency and Bankruptcy Board of India (IBBI), said a senior government official. It’s looking at Sections 12A, which provides for withdrawing IBC cases if 90% lenders agree, and 29A, which bars defaulting promoters and related

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