When was the Board for Industrial and Financial Reconstruction started?

Correct option is A

Correct Answer:A. 1987

• The Board for Industrial and Financial Reconstruction (BIFR) was established in 1987 under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA).

• It was created to identify, investigate, and rehabilitate sick industrial companies in India.

• BIFR’s primary role was to revive viable units and recommend closure of non-viable ones.

• BIFR was part of India’s efforts to tackle industrial sickness and improve financial health of industries.

• It was abolished in 2016 and its functions were transferred to the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC), 2016.

• The idea was to make the process of insolvency resolution faster and more efficient.

• BIFR operated by examining financial statements and operational data to classify companies as “sick”.