Financial creditors recover over Rs 470 billion in 26 cases under IBC

Corporate Affairs ministry struck off the names of about 226,166 companies from official records for being inactive and not making statutory filings for a long time, says P P Chaudhary

Financial creditors have realised claims worth over Rs 470 billion (Rs 47,000 crore) in 26 cases, under the Insolvency and Bankruptcy Code (IBC), the government said on Tuesday.

IBC lays down a time-bound and transparent framework for resolving cases of insolvency by balancing the interest of all stakeholders and maximising the value of stressed assets, post unloading it by way of insolvency resolution or liquidation as the case may be.

"The financial creditors have realised claims of approximately Rs 474.26 billion (Rs 47,426.75 crore) in 26 cases where resolution plans are submitted under the IBC framework since its enactment," Minister of State for Corporate Affairs P P Chaudhary said in a written reply to Rajya Sabha.
 

The government introduced IBC in 2016. This was in line with its policy to improve the business environment in the country.

In a separate reply, Chaudhary said the ministry struck off the names of about 226,166 companies from official records for being inactive and not making statutory filings for a long time.

Besides, the government has ordered investigation into the true ownership of 68 companies, which have deposited and withdrawn fund in an exception manner from the bank accounts during demonetisation period, he added.