Just 10% of defaulted loans in non-major cos recovered under IBC: Ramesh

The first objective of the IBC was to save companies but with a mortality rate of 80 per cent it is not life saving, said Jairam Ramesh

The insolvency and bankruptcy law has resulted in recovery of just 10 per cent of defaulted loans in case of companies other than the seven big ones referred for resolution, senior Congress leader Jairam Ramesh said in Rajya Sabha on Thursday.

Speaking on a bill to further amend the Insolvency and Bankruptcy Code to give protection to new owners of a loan defaulter company against prosecution for misdeeds of previous owners, Ramesh said of the 970 cases referred to IBC, 780 have been liquidated, indicating a mortality rate of 80 per cent.

The first objective of the IBC was to