Sitharaman announces decriminalisation of Companies Act defaults

In order to provide relief to the companies amid COVID-19 pandemic, Union Finance Minister Nirmala Sitharaman on Sunday announced the decriminalisation of Companies Act defaults.

In order to provide relief to the companies amid COVID-19 pandemic, Union Finance Minister Nirmala Sitharaman on Sunday announced the decriminalisation of Companies Act defaults. "Decriminalisation of Companies Act defaults; 7 compoundable offences altogether dropped and 5 to be dealt with under alternative framework. The amendment will de-clog the criminal courts and National Company Law Tribunal (NCLT)," Sitharaman said while announcing the last tranche of the economic package announced by the government.

She said that debts due to COVID-19 will not be included in the category of 'default'. The announcements came after the Prime Minister Narendra Modi on Tuesday announced a Rs 20 lakh crore stimulus package for the country to become 'self-reliant' and deal with COVID-19 crisis.(ANI)