At least 35 corporate insolvency resolution processes are going on under the Insolvency and Bankruptcy Code, which is providing entities the “freedom to exit”, IBBI Chairperson M S Sahoo said.
The Code, which provides for market-determined and time-bound resolution process, is being implemented by the Insolvency and Bankruptcy Board of India (IBBI). “35 corporate insolvency resolution transactions are going on, which involve default of about Rs 4,000 crore in a case,” Sahoo said.
The Code, which came into effect from December 1, 2016, seeks to consolidate and amend laws relating to re- organisation as well as insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner.
Speaking at a conference organised by not-for-profit group H2Life Foundation, Sahoo said the complete regime of economic freedom is in place with the Code.
“We had freedom of entry, to compete and now we have freedom to exit,” he said, adding that the IBBI is ready for changes in the resolution as per the need of the hour.
H2Life Foundation President Vikas Sharma said the Code would not only streamline the insolvency process but also help in boosting business growth of the country.