Bankrupt? You May Be Barred from Contesting Elections

The Ethics Committee of Parliament has already recommended the disqualification of the absconding Vijay Mallya.

The Joint Committee of Insolvency and Bankruptcy Bill has recommended that a bankrupt person may be disqualified from being elected to any public office. (Photo: iStockphoto)

The Joint Committee of Insolvency and Bankruptcy Bill has recommended that a bankrupt person may be disqualified from being elected to any public office, reports The Times of India. India’s bankruptcy law dates back to 1909. The number of businessmen has been rising in Parliament and state assemblies, with some having a chequered record of repaying loans.

If the recommendations are accepted by the government and incorporated in the revised Bill expected to be tabled during the current session of Parliament, the ban could extend to people contesting elections for municipal bodies, state assembly and Parliament. 

The Times of India Report

The Ethics Committee of Parliament has already recommended the disqualification of absconding liquor baron Vijay Mallya as he remains mired in litigation with banks over non-repayment of Rs 9,000 crore in debt.

Read the full report here.