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What is the full form of BIFR?

Full form of BIFR: Here, we are going to learn about the BIFR, full form of BIFR, overview, history, objectives, etc. By Anushree Goswami Last updated : April 4, 2024

BIFR: Board of Industrial and Financial Reconstruction

BIFR is an abbreviation of the Board of Industrial and Financial Reconstruction. It was an organization of the Government of India and a branch of the Department of Financial Services of the Ministry of Finance. Under the Sick Industrial Companies (Special Provisions) Act (SICA), 1985, it was founded. Its mission was to revitalize and recuperate sick undertakings and shutting down or liquidation of the capacity to develop or happening of sick in the future or not feasible industrial companies. It offered appropriate revitalization packages depending on the nature of the crisis or trouble.

Image source: https://en.wikipedia.org/wiki/Board_for_Industrial_and_Financial_Reconstruction

BIFR Objectives

The BIFR comprises a Chairman and also comprise from two to fourteen other members. The qualification for all the members to be competent as High Court judges or else they should have as a minimum fifteen years of significant professional experience.

The Board only organizes and manages huge or medium-sized sick industrial companies in which huge quantities have been ruined.

BIFR Brief History

• In the pre-independence days, industrial sickness started in India. In the initial days, the Indian government tried to counteract it with some ad-hock procedures which comprise the Nationalization of Banks to offer provisional help.
• In 1975, RBI organized the Tondon committee. After one year in 1976, HN Ray Committee was organized and established. The measures recommended by these committees were not that much suitable and acceptable.
• In 1981, Tiwari Committee was formed which recommended wide-ranging legislation to deal with industrial sickness. As a consequence in 1985, the SICA came into existence and in January 1987, the BIFR was founded under SICA.
• In April 1987, an Appellate Authority for Industrial and Financial Reconstruction (AAIFR) was constituted.
• In 1991, the Government companies were taken under the purview of SICA. Afterward, it enclosed both public and private companies that have industrial sickness happenings.
• In 2001, at that time as the government felt that the BIFR didn’t meet its aims of precautionary industrial sickness Companies, Amendment Bill was introduced.
• In 2003, the Sick Industrial Companies (Special Provisions) Repeal Act was passed which again taken the place of the SICA and required to take place of BIFR and AAIFR with National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT).
• On 1 December 2016, the Government of India suspended BIFR through an official announcement and as per Insolvency and Bankruptcy Code, all the actions and measures were to have alluded to the NCLT.