On paper, it’s a success; NPAs are down, banks are healthier. But here’s the twist: the very rules meant to fix bad debts may now be pushing away the people who create jobs and invest. Yes, high-net-worth Indians are leaving; not because of taxes or safety, but because the system doesn’t forgive honest failures. Section 29A of the IBC bans defaulting promoters from bidding for their own companies, even if the default wasn’t their fault. That’s unique to India. No other country is this strict. The result? Risk-averse business owners, fewer bold bets, and capital leaking out. Add to that: MSMEs recover just 11% of what they’re owed, while banks get 35%. And insolvency professionals? Over half have quit, tired of red tape. The IBC was designed to clean up balance sheets. But now, it may be strangling growth. Time for a rethink: protect honest entrepreneurs, reward real recovery, and let the system breathe again.