IBC: Revolutionizing Bankruptcy and Recovery in India
The Insolvency and Bankruptcy Code (IBC) has significantly improved recovery rates of bankrupt companies, reclaiming over Rs 4 lakh crore in a decade. The IBC's efficiency leads to a higher recovery rate compared to other mechanisms, fostering fear of insolvency among companies and prompting legislative amendments.
- Country:
- India
The Insolvency and Bankruptcy Code (IBC) has been a game-changer, recovering over Rs 4 lakh crore since its inception, according to senior BJP MP Anurag Thakur, who spoke in the Lok Sabha recently.
Thakur emphasized that the IBC, enacted in 2016, is designed for the revival of companies rather than simply acting as a recovery mechanism. The efficiency of the IBC is highlighted by its 50% recovery rate, outpacing the SARFAESI Act and Debts Recovery Tribunals, which recover 20% and 10% respectively.
The recent introduction of an amendment bill in the Lok Sabha aims to streamline the insolvency process, with the inclusion of cross-border insolvency provisions and measures for faster resolution. This follows over 32,000 applications being withdrawn after settling debts worth over Rs 14.5 lakh crore.
ALSO READ
-
Revitalized Firms: A Decade of Success Under Insolvency & Bankruptcy Code
-
High Court Slams Loan Defaulters for Misusing Bankruptcy Code
-
NCLAT Upholds NCLT Decision in Eastman Auto & Power Insolvency Case
-
NCLAT Revives Insolvency Appeal Against Dilip Buildcon
-
ILO–IBCWE Social Media Campaign Promotes Gender Equality in Indonesian Workplaces
Google News