Bankruptcy courts have sent more than 1,100 companies for liquidation under the Insolvency and Bankruptcy Code (IBC) ever since the code came into force in 2017.
Citing data from the Insolvency and Bankruptcy Board of India (IBBI), the Minister of State for Corporate Affairs, Anurag Thakur told the Lok Sabha that a total of 1,126 companies have been ordered for liquidation as of December 31, 2020.
Further, as of last year 317 cases resolution plans have been approved and the realizable value for creditors from the approved resolution plans of 317 cases is Rs 2.01 lakh crore which is 39.37 per cent of total admitted claims of Rs 5.11 lakh crore.
Government has suspended the admission of new IBC cases in view of the pandemic the pandemic and the suspension is scheduled to end on March 24.
There is anticipation that no further extension would be made in terms of the suspension of the new insolvency cases. Further, several experts and stakeholders have also raised concerns of rising stress and bankruptcy cases once the suspension is lifted.
The IBC has evolved a lot in the past three years and soon India is likely to have a prepackaged insolvency framework. Further, a separate insolvency framework for MSMEs is also in the making.