A sudden reversal can also be unconstitutional
A poster of the All India Bank Employees’ Association (AIBEA) has recently appeared on social media. It provides insight into the discounts taken by banks when resolving defaults by large corporate groups – three accounts imply a discount of more than 90%. The data not only provides insight into how India’s insolvency and bankruptcy resolution framework may have inadvertently inserted perverse incentives for defaulters, but also provides a compelling counterpoint to the ongoing debate over the “gifts”, made more urgent by the Election Commission (EC) recent forays. These two seemingly disparate trends are linked by a common thread: a sudden reversal.