The government is planning to launch the “Integrated Technology Platform” under the Insolvency and Bankruptcy Code (IBC) by the end of 2025, according to official sources.
“The tech-portal will be launched in phases, but it will become operational from end-2025…the value added services will be included in the portal later,” an official source told FE.
Finance Minister Nirmala Sitharaman during her Budget speech said that the integrated portal will be set up for improving the outcomes under the IBC for achieving “consistency, transparency, timely processing and better oversight for all stakeholders”.
The aim of the portal will be to provide a “seamless flow” of information to all the stakeholders on a timely basis, which would help expedite the resolution process and prevent value-erosion of assets, the sources said.
Insolvency and Bankruptcy Board of India (IBBI) Chairman Ravi Mittal had earlier said that the delay in the corporate insolvency resolution process (CIRP) under the insolvency and bankruptcy code (IBC) erodes the stressed-asset’s value and minimises recovery for the creditors; hence, it’s important for all the stakeholders to expedite decision making.
As per IBBI analysis, on an average, the CIRP is taking 679 days to conclude as against the standard timeline of 330 days. The regulator mentioned that the recovery rate for creditors stands at 49.2% if the CIRP is concluded within 330 days. It reduces to 36%, if the CIRP process concludes between 330-599 days; and beyond 600 days, the recovery rate stands at mere 26.1%.
Experts say the integrated platform is a “cherished reform”, as it would serve as a single source of information for all the stakeholders, regulators, agencies etc.
“The information submitted with various institutions like NCLT, IBBI, IPA, MCA, etc. would be technologically facilitated to be integrated seamlessly and it is expected that the advanced use of technology would enable the automatic data review, and reduce compliance burden etc.,” said Anjali Jain, partner at Areness.
Siddharth Srivastava, partner, Khaitan & Co said A comprehensive end-to-end tech platform will also help NCLT benches make swift decisions, as an integrated tech platform will give them immediate visibility of the relevant facts and data.
