India Tax & Regulatory
IBC/Insolvency Acquisition (Section 29A Eligibility)
Selling a distressed business through the Insolvency and Bankruptcy Code's resolution process, where prospective buyers (resolution applicants) must clear Section 29A eligibility bars, including related-party and past-NPA restrictions.
Seller Example
A promoter of a Surat power-loom unit heading into insolvency, hoping to retain some involvement post-resolution, gets independent advice confirming he is very likely barred under Section 29A from bidding to reacquire his own company — reshaping his exit strategy toward negotiating an early one-time settlement (OTS) with lenders instead of relying on the resolution process to regain control.