1.06 lakh firms voluntarily exit in 5 years
1,168 cos sought liquidation under Insolvency and Bankruptcy Code-2016: Govt
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New Delhi: More than one lakh firms voluntarily exited under the Companies Law in nearly five years, the government said on Monday. Besides, many companies have sought voluntary liquidation under the Insolvency and Bankruptcy Code (IBC).
“From FY 2018-19 to FY 2023-24 (up to November 30, 2023) 1,06,561 companies exited volun-tarily under section 248(2) of the Companies Act, 2013. From FY 2018-19 to FY 2023-24 (up to September 30, 2023) final reports of 1,168 companies have been submitted by liquidators under section 59 of the Insolvency and Bankruptcy Code, 2016 (IBC), of which final dissolution or-ders have been passed by NCLT in 633 cases during the said period,” Union Minister Rao In-derjit Singh told the Lok Sabha.
Section 248(2) of the Companies Act pertains to voluntary exit of companies while Section 59 of the IBC relates to voluntary liquidation of companies. In the last five years, time taken for voluntary exit has varied between an average of 6-8 months to even 12-18 months in some cases.
