Decriminalization - Quo Vadis?

The COVID-19 pandemic has forced the hands of industry bodies and government authorities to push for a lot of unconventional changes to the existing business environment. The Insolvency and Bankruptcy Code (IBC) has been temporarily suspended, giving legal cover to companies against initiation of resolution proceedings. Although it was an encouraging step aimed at preventing downturns and insolvencies arising on account of the slowing economy, it raises questions of increased stress on the already ailing Non-Banking Financial Corporations (NBFCs) and banks, which form the backbone of the credit cycle in the economy. An indication of a rising culture of deregulation that is being gradually ushered into the Indian economy and is being silently affected in tranches. Moreover, the difficulties brought by COVID-19 are catalyzing the process of deregulation, with the hope of helping ailing industries to recover.