The insolvency law has helped in directly and indirectly addressing stressed assets worth ₹3 lakh crore in the last two years, a senior government official said on Saturday.
More than 9,000 cases have come for redressal under the Insolvency and Bankruptcy Code (IBC), which became fully operational in December 2016.
Corporate Affairs Secretary Injeti Srinivas said there had been a direct and indirect impact of the Code on stressed assets worth ₹3 lakh crore. The estimated amount included recoveries made through resolution plans and cases settled before admission by the National Company Law Tribunal (NCLT) under the Code. Over 3,500 cases have been resolved at pre-admission stage and resulted in claims worth ₹1.2 lakh crore getting settled, he said.
Under the Code, cases are taken up for resolution only after approval from the NCLT. “About 1,300 cases have been admitted and out of that, in about 400 cases, corporate insolvency resolution process has been completed... in 60 cases resolution plans have been approved, in 240 cases liquidation orders have been given, 126 cases are in appeal. These cases which have been resolved have led to recovery of ₹71,000 crore as of now,” Mr. Srinivas said here.
Mature stage
Taking into consideration cases that are at a mature stage of being addressed under the Code, he said the amount would be another ₹50,000 crore.
“If you factor that, you have around ₹1.2 lakh crore coming through resolutions... (then adding up) pre-admission settlements, then it becomes ₹2.4 lakh crore,” Mr. Srinivas said.
Further, the Corporate Affairs Secretary noted that there are non-standard NPA accounts that have been converted to standard accounts by virtue of borrowers paying back the overdue amount and that figure would be around ₹45,000-50,000 crore. Together, the amount would be close to ₹3 lakh crore in terms of stressed assets that have been directly and indirectly impacted by the Code, he added.
3,200 cases pending
Mr. Srinivas also said that much of the money might be pertaining to operational creditors. Besides, he said there were some bottlenecks with NCLT, insolvency resolution professionals and Committee of Creditors (CoC).
“Today, I find more than 3,200 cases pending for more than 90 days for admission... So who to blame? I will not blame NCLT but NCLT has to be more conscious about time (line),” Mr. Srinivas noted.
Published - November 24, 2018 09:38 pm IST
