The Board of Industrial and Financial Reconstruction (BIFR) came into existence in which year?

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Anonymous User asked 18-Mar-2019 in General Knowledge by Anonymous User

The Board of Industrial and Financial Reconstruction (BIFR) came into existence in which year?

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Harshal Vispute answered 29-Oct-2021 by Harshal Vispute

The Board for Industrial and Financial Reconstruction (BIFR) was a government of India organization that was part of the Ministry of Finance's Department of Financial Services. It was established in January 1987 by the Rajiv Gandhi government with the goal of determining the state of industrial enterprises and assisting in the revival of those that were viable while shutting down those that were not. According to the rules of the Insolvency and Bankruptcy Code, the Narendra Modi government dissolved BIFR on December 1, 2016, and directed all matters to the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT).

The Sick Industrial Companies (Special Provisions) Act of 1985 established the BIFR (SICA). The board was established in January 1987 and began operations on May 15, 1987.

On July 24, 1991, a new industrial policy was introduced in Parliament, with the goal of maintaining productivity and gainful employment while also encouraging entrepreneurship and technological advancements.

The SICA was changed that year to include public sector firms in the board's jurisdiction.

The National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) would take over the functions of the BIFR and other bodies, allowing ailing enterprises to be wound down faster.

The Board is comprised of a Chairman and between two and fourteen other members, all of whom must be High Court judges or have at least fifteen years of relevant professional experience.

The Board only deals with large or medium-sized ill industrial businesses that have sunk substantial sums of money.

The BIFR was created to close the legal gap between sickness and resurrection. It would set deadlines for the completion of revival-related actions, monitor their implementation, and conduct periodic evaluations of ill accounts.

The BIFR would serve as a platform for exchanging ideas, coordinating efforts, and adopting a consistent approach to dealing with ill enterprises, allowing corrective action to begin sooner.

The BIFR was designed to either turn around enterprises in six months or close orders.

The BIFR had registered 1020 cases and heard 954 by the end of March 1991. 175 were rejected as unmaintainable, while 124 were approved for the company to attempt to become net-worth positive on its own. The board approved 182 revival plans and suggested that 120 cases be closed out of the remaining 661 cases.

BIFR has had varying degrees of success.