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In order to bring some relief to the cash strapped MSME sector amid the Coronavirus pandemic, Finance Minister Nirmala Sitharaman on Tuesday raised the threshold of default to Rs 1 crore from the existing Rs 1 lakh to prevent triggering of insolvency proceedings against MSMEs. “This gets implemented straightaway,” the FM said.

The Minister also said that they will be watchful of the present situation and will consider suspending Section 7, 9 and 10 of the Insolvency and Bankruptcy Code (IBC) if the situation persists. “This can stop companies from being forced into insolvency proceedings in such force majeure causes of default,” she categorically stated.