---
title: "The Board of Industrial and Financial Reconstruction (BIFR) came into existence in which year?"  
description: "The Board of Industrial and Financial Reconstruction (BIFR) came into existence in which year?"  
author: "UTKARSHA SINGHROUL"  
published: 2019-03-18  
canonical: https://answers.mindstick.com/qa/51891/the-board-of-industrial-and-financial-reconstruction-bifr-came-into-existence-in-which-year  
category: "general knowledge"  
tags: ["general knowledge", "banking"]  
reading_time: 3 minutes  

---

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

The [Board](https://www.mindstick.com/blog/12258/preparation-tips-for-cbse-class-12-board-exam) of [Industrial](https://www.mindstick.com/articles/12847/how-to-choose-the-right-ethernet-cable-for-industrial-applications) and [Financial](https://www.mindstick.com/articles/23324/9-ways-to-improve-your-business-s-success-rate) [Reconstruction](https://www.mindstick.com/articles/327784/afghanistan-the-rising-threat-for-india) (BIFR) [came into existence](https://answers.mindstick.com/qa/37903/chhattisgarh-came-into-existence-on-which-year) in which year?

## Answers

### Answer 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 w**ith 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 w**as 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.**

**T**he 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.**

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