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Corporate insolvency: Rethinking irregular transactions

So far 786 applications have been filed to recover over Rs 2.2 trillion allegedly lost through irregular transactions. Retrieving this needs a law, policy and regulatory focus

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C K G NairM S Sahoo
In a landmark judgment in the matter of Anuj Jain Vs Axis Bank Ltd (February, 26 2020), the Supreme Court upheld the recovery of 758 acres of land valued at over Rs 5,300 crore, which was lost through irregular transactions. Till June this year, 786 applications have been filed to claw back Rs 2,21,104 crore allegedly lost through irregular transactions by firms undergoing the corporate insolvency resolution process (CIRP). If this value is retrieved fully, several firms would be rescued. If this value was not alienated, many would not have got into CIRP in the first place.

The Insolvency and Bankruptcy
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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First Published: Oct 25 2022 | 11:41 PM IST

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