Banks want IBC proceedings in all pending cases to be suspended for 2 years

Fall in valuation, lack of demand cited as reasons

Citing a sharp fall in valuations and lack of demand for bankrupt companies, Indian banks are considering proposing to the government that insolvency proceedings in all the pending cases be suspended for at least two years.

There were 1,961 cases pending in courts as of December 2019.

If the lenders’ proposal is approved, it will impact big-ticket cases like Videocon Industries, Reliance Communications, and Lavasa Corporation, pending in the National Company Law Tribunal (NCLT). 

Banks have made claims worth Rs 75,000 crore against Videocon Industries, which was on the