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More than 17,800 cases involving an amount of Rs 5.5 lakh crore were disposed of at the pre-admission stage till July this year under the insolvency law, Corporate Affairs Secretary Rajesh Verma said on Friday.
Providing data about the number of cases and their status under the Insolvency and Bankruptcy Code (IBC), he also stressed that disposal of 17,837 cases at the pre-admission stage itself also reflects the behavioural change brought in by the Code.
The IBC, which came into force in 2016, provides for a market-linked and time-bound resolution of stressed assets.
Till July this year, Verma said more than 4,570 cases were admitted for CIRP (Corporate Insolvency Resolution Process) and out of them, 657 cases were closed on grounds of appeal and review, among others.
As many as 466 cases were withdrawn and 404 cases resulted in resolution while 1,371 resulted in liquidation.
"These 404 cases that have been resolved have realisable amount of more than Rs 2.5 lakh crore. In addition, 17,837 cases, you will be surprised, involving an amount of almost Rs 5.5 lakh crore were disposed of at the pre-admission stage. That is the strength of the IBC and the change in behaviour that IBC has actually achieved," Verma said.
Noting that the IBC is an evolving legislation, he said the Code has undergone six amendments that have strengthened the framework and removed various bottlenecks.
He was speaking at a conference on IBC organised by industry body CII.
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