GENISIS OF SICA, 1985
Industrial sickness had started right from the pre-Independence days.
Government had earlier tried to counter the sickness with some ad-hoc measures.
Nationalisation of Banks and certain other measures provided some temporary relief.
RBI monitored the industrial sickness.
A study group, came to be known as Tandon Committee was appointed by RBI in 1975.
In 1976, H.N. Ray committee was appointed.
In 1981, Tiwari Committee was appointed to suggest a comprehensive special legislation designed to deal with the problem of sickness laying down its basic objectives and parameters, remedies necessary for revival of sick Units.
The committee submitted its report to the Govt. in September 1983 and suggested the following:
Need for a special legislation
Need for setting up of exclusive quasi-judicial body.
Thus the SICA came into existence in 1985 and BIFR started functioning from 1987.