Those bankrupt may soon be barred from contesting poll

A bankrupt person will stand automatically disqualified from becoming a law-maker in India once the new legislation that looks to slash the time it takes to wind up a dying company or recover dues from a defaulter is enacted.

According to a clause in the Insolvency and Bankruptcy Code, 2015, a bankrupt will stand disqualified from being appointed or acting as a public servant or being elected to any public office from the date of commencement of proceedings.

The draft legislation provides for disqualification unless exempted by the adjudicating authority. But a 30-member joint committee of Parliament, headed by BJP’s Bhupender Yadav, has recommended not giving “discretion to the adjudicating authority to exempt the bankrupt from disqualifications”.