IBC Resolution Plans Realise Rs 2.47 Lakh Crore For Creditors In Five Years

New Delhi, Jul 29 (KNN) A total of 1,077 cases have yielded resolution plans under the Insolvency and Bankruptcy Code (IBC), 2016, over the last five years, resulting in Rs 2.47 lakh crore realised for creditors, the government informed the Rajya Sabha.

Minister of State for Corporate Affairs Harsh Malhotra said the realisation amounted to 27.1 percent  of claims, 101 percent of fair value and 149 percent of liquidation value.

Government Takes Steps to Speed Up Insolvency Resolution

The government has undertaken several measures to streamline the insolvency resolution process and enable time-bound resolutions under the IBC.

The Code has been amended periodically to address practical challenges, clarify provisions, streamline processes and resolve legal issues. The Insolvency and Bankruptcy Board of India (IBBI) has also introduced more than 100 regulatory amendments since its inception based on market requirements.

These measures have focused on reducing delays, improving the insolvency process and maximising the value of assets of corporate debtors. 

The IBBI has also conducted outreach and awareness programmes for stakeholders, while the use of information technology in insolvency proceedings has been expanded.

2026 Amendments Introduce New Insolvency Mechanisms

The IBC (Amendment) Act, 2026 has further introduced reforms including the Creditor-Initiated Insolvency Resolution Process (CIIRP), group insolvency and a cross-border insolvency framework.

The government said the IBC has also contributed to improved credit discipline. 

A study by the Indian Institute of Management (IIM) Bangalore found that the law encouraged borrowers to adhere to stipulated loan repayment schedules, with a significant decline in overdue loan accounts in both value and number.

A separate study by the IIM Ahmedabad, published in August 2023, found significant improvements in the profitability, liquidity and overall financial health of companies that underwent resolution under the IBC.

According to the government, these findings indicate the IBC's positive impact on business continuity and preservation of value.

Reforms Aim to Support Viksit Bharat 2047

In line with the Viksit Bharat 2047 vision, the government said the 2026 amendments aim to further strengthen the insolvency framework by reducing delays, maximising stakeholder value, improving governance and enhancing ease of doing business.

(KNN Bureau)