What is the Full form of BIFR?
The BIFR full form is the Board for Industrial and Financial Reconstruction. The Sick Industrial Companies Act (SICA) of 1985 established it as a government agency and division of the Department of Financial Services within the Ministry of Finance. Its objective was to reorganize and recover ailing enterprises and to eliminate or liquidate the ability of ailing performances to grow or occur in the future or for the foreseeable future.
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Objectives of BIFR
- The BIFR was composed of a chairman and between two and fourteen other representatives.
- A minimum of 15 years of professional experience or election to the High Court was required for membership.
- The Board would only oversee large or medium-sized ailing industrial businesses that had lost a substantial amount of money.
History of BIFR
- In India, industrial illness began before independence. In its early days, the Indian government attempted to fight the crisis with ad hoc measures, including the nationalization of banks to provide temporary aid.
- The Tiwari Committee was established in 1981 and advocated comprehensive legislation to address occupational illness. As a result, SICA was founded in 1985, and BIFR was established within SICA in January 1987.
- In April 1987, the AAIFR (Appellate Authority for Industrial & Financial Reconstruction) was established.
- Under the auspices of SICA, government corporations were adopted in 1991. After that, both commercial and public organizations with occupational illness cases were included.
- The Amendment Bill was introduced in 2001 as a result of the government’s belief that the BIFR had failed to accomplish its goals of promoting preventive industrial health enterprises.
- 2003 saw the passage of the Repeal Act on Sick Industrial Companies, which replaced SICA and mandated the replacement of BIFR & AAIFR with the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT), respectively.
