BIFR Full Form | Full Form of BIFR
BIFR Full Form - Board of Industrial and Financial Reconstruction
Board of industrial and Financial Reconstruction
- BIFR stands for Board of industrial and Financial Reconstruction. It had been an agency of state of India and a part of the Department of financial Services of the Ministry of Finance.
- It had been established under the Sick Industrial Companies (Special Provisions) Act (SICA), 1985. Its aim was to revive and rehabilitate sick undertakings and closure or liquidation of the potentially sick or non-viable industrial companies.
- It provided suitable revival packages depending on the nature of the problem.
Objectives of BIFR
- The BIFR consists of a chairperson, also as two to fourteen other representatives.
- The prerequisite for all members to be elected as judges of the high court because otherwise, they should have essential professional experience of a minimum of 15 years.
- The Board organizes and oversees only large or medium-sized sick industrial enterprises where vast amounts are destroyed.
- Industrial sickness began in India within the pre-independence days. In the beginning, the Indian government tried to counter it with some ad-hock measures including the Nationalization of Banks to provide temporary relief.
- In 1975, RBI set up the Tondon committee. After one year, HN Ray Committee was formed in 1976. These committees suggested some measures which weren't satisfactory.
- In 1981, Tiwari Committee was constituted which suggested a comprehensive legislation to deal with the industrial sickness. Consequently, the SICA came into existence in 1985 and therefore the BIFR was established in January 1987 under SICA.
- In April 1987, an Appellate Authority for Industrial and Financial Reconstruction (AAIFR) was formed and therefore the Government companies were brought under the purview of SICA in 1991. Later, it covered both public and private companies that have industrial undertakings.
- In 2001, Companies (Amendment) Bill was introduced as the government felt that the BIFR didn’t meet its objectives of preventive industrial sickness.
- In 2003, the Sick Industrial Companies (Special Provisions) Repeal Act was enacted which replaced the SICA and sought to replace BIFR and AAIFR with National Company Law Tribunal ( NCLT ) and National Company Law Appellate Tribunal ( NCLAT ).
- On 1 December 2016 Government of India dissolved BIFR through an official notification and every one proceedings were to be referred to the NCLT as per Insolvency and Bankruptcy Code.