Rs 80,000 crore recovered via IBC so far: FM Arun Jaitley

By: |
Published: January 4, 2019 3:01:58 AM

In the blog post, Jaitley said: “The early harvest through the IBC process has been extremely satisfactory.

Some of the 12 large cases recommended by the RBI for resolution under the IBC such as Bhushan Power and Steel and Essar Steel are likely to be resolved this fiscal in which realisation is expected to be around Rs 70,000 crore.

Creditors realised as much as Rs 80,000 crore from 66 cases that found resolution under the Insolvency and Bankruptcy Code (IBC) so far, finance and corporate affairs minister Arun Jaitley has said, pitching the two-year-old law as a huge success of the government.
As per National Company Law Tribunal (NCLT) data, in 4,452 cases disposed at pre-admission stage, the amount settled was around `2.02 lakh crore, Jaitley said in a blog, indicating that the threat of invoking IBC by creditors was enough to make many defaulters pay up dues and settle the matter.
Some of the 12 large cases recommended by the RBI for resolution under the IBC such as Bhushan Power and Steel and Essar Steel are likely to be resolved this fiscal in which realisation is expected to be around `70,000 crore.

Increase in conversion of non-performing assets (NPAs) into standard accounts and a decline in new accounts falling in the NPA category show a definite improvement in the lending and borrowing behaviour, the minister said. So far, 1,322 cases have been admitted by the NCLT.

Also Read: Two years after demontisation, RBI scales down printing of Rs 2000 note; all you need to know

In the blog post, Jaitley said: “The early harvest through the IBC process has been extremely satisfactory. It has changed the debtor-creditor relationship. The creditor no longer chases the debtor. In fact, it is otherwise.”
By contrast, the various mechanisms adopted by the Congress government were utter failures, he said, adding that the only worthwhile mechanism—the SARFAESI Act–to address the bad loan issue earlier was brought in by the Vajpayee government.
According to a latest RBI report, the average recovery by banks based on the amount filed through the IBC was as much as 41.3% in FY18, against just 12.4% through other mechanisms such as SARFAESI Act, Debt Recovery Tribunals (DRT) and Lok Adalats.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1E-commerce rules do not allow FDI in inventory-based model or multi-brand retail: DIPP
2Government’s proposal to amend IT rules ‘blunt and disproportionate’, says Mozilla
3Maggi ban case: Big relief for Nestle as SC allows favourable report on MSG, lead content in noodles