look news india
AHMEDABAD: In the last eight years, through resolution of stressed assets under insolvency proceedings, lenders have raised Rs. Has recovered. Rs 3.5 lakh crore has been recovered. IBBI Chairperson Ravi Mittal said in a statement that NCLT has approved 1000 resolution plans during this period.
Officials are claiming that the stringent Insolvency Code, which was introduced in India eight years ago to recover defaulting companies and protect company assets, has been a significant success.
The Insolvency and Bankruptcy Code (IBC) provides market linked and timely resolution of stressed assets.
The National Company Law Tribunal and the Insolvency and Bankruptcy Board of India are the key institutions of the IBC ecosystem.
In the last two years, NCLT has approved 450 resolution plans. Of the 1,000 such schemes approved in the last eight years, the last two years alone account for 45 per cent. Apart from this a total of Rs. Out of Rs 3.5 lakh crore, Rs 1 lakh crore has come only in the last two years.
Importantly, according to Mittal, around 84 per cent of the fair value of the assets has been recovered under the IBC, but Mittal could not give a figure as to what percentage of the total amount due to creditors has been recovered under the IBC. Chief Economic Advisor Nageswaran said that the insolvency regime is important for economic growth.