IBC helped banks recover over Rs 3 lakh cr in 6 yrs
Rs10.2-trn defaults were settled at stage of pre-admission of insolvency cases since inception of IBC in 2016; Creditors recovered 32% of their claims
image for illustrative purpose
Facilitating Recovery
- 20% cos under resolution process from realty space
- 31,394 corporate debtors cases valuing Rs13.9 lakh cr settled since 2016
- NCLT facilitated closure of 4,131 CIRPs
- 3,171 corporate debtors rescued
New Delhi: Defaults worth Rs10.2 lakh crore have been settled at the stage of pre-admission of insolvency cases since the inception of IBC in 2016, and more than one-fifth of the companies undergoing resolution process are from the real estate space, the Economic Survey said on Monday.
In the past six years since FY18, the IBC (Insolvency & Bankruptcy Code) has enabled over Rs3 lakh crore recovery for banks, which was much more than what the lenders had recovered through previous mechanisms of Lok Adalats, DRTs, and the SARFAESI Act, it said. Since the implementation of IBC in 2016, a total of 31,394 corporate debtors cases involving a value of Rs13.9 lakh crore have been disposed of (including pre-admission case disposals) as of March 2024, says the Survey tabled in Parliament by Finance Minister Nirmala Sitharaman.
The loss of control immediately after the beginning of the resolution process has led debtors settle with creditors as soon as the applications are filed with the National Company Law Tribunal (NCLT).
