In the last five years since the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code 2016 came into existence, only 394 cases have managed to reach a resolution out of the 4,540 cases which have been admitted under it till June 30, 2021.
According to data provided by the Ministry of Corporate Affairs, the aggregate realisable amount from the 394 cases which have been resolved under CIRP is Rs 2.45 lakh crore. This amount pertains to financial creditors as well as banks.
The Insolvency and Bankruptcy Code, 2016 (IBC) is a bankruptcy legislation, which was passed by the Parliament in May 2016 with the aim of creating a single law for bankruptcy and insolvency.
It was termed as a one stop solution for resolving insolvencies which earlier took a long time to get cleared and often did not offer an economic viable arrangement.
The CIRP is initiated on the basis of default amount and information on the amount of total debt of the corporate debtors under it is not maintained by the Insolvency and Bankruptcy Board of India.
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