Under new bankruptcy laws what if someone fakes and misuses the law?
The new insolvency and Bankruptcy Code 2016 comes with regulations to make sure there
is no unauthorized use of the act. If anyone or any entity is found misusing the law or having a malicious intent or for any fraudulent activity, the adjudicating authority has the right to impose a fine ranging from Rs 1 Lakhs to Rs. 1 Crore on the individual(s) concerned.
Fortunately, the new bankruptcy laws state that if any person or entity misuses the law to carry out fraud or any malicious activity, the adjudicating authority can levy a fine ranging from Rs. 1 lakh to Rs. 1 crore on the party in question.