New Delhi, Dec 29 (IANS) As many as 28,818 applications for initiation of the Corporate Insolvency Resolution Process (CIRP), having an underlying default of Rs. 10.22 lakh crore, were resolved before their admission till March 2024 due to the behavioural change in debtor-creditor relationship effectuated by the Insolvency and Bankruptcy Code (IBC), according to the Ministry of Corporate Affairs’ year-end review
Till September 2024, 1,068 CIRPs have culminated in resolution plans, achieving on average 86.13 per cent of the fair value of the Corporate Debtor (CD). Creditors have realised Rs. 3.55 lakh crore under the said resolution plans.
By June 2024, the IBC successfully navigated 3,409 CDs through the insolvency process, with 1,068 achieving resolutions through plans and the remainder through appeals, reviews, settlements, or withdrawals. The resolution of these CDs has led to a realisation rate of over 161 per cent against liquidation value. The average expense incurred in the resolution processes is remarkably low, standing at only 1.37 per cent of the liquidation value and 0.83 per cent of the resolution value, the review states.
The IBC has introduced a new era of transparency and fairness in insolvency resolutions. It ensures equitable treatment of all stakeholders, with a clear and predictable resolution process, the review further stated.
The Government is also considering setting up an Integrated Technology Platform under the Insolvency and Bankruptcy Code, 2016. This would lead to more transparency, minimisation of delays, effective decision making and better oversight of the processes by the authorities.
Meanwhile, the Competition Commission of India (CCI) has received 1,289 antitrust matters since its inception and has disposed of 1,157 (90 per cent approx.) cases till September this year, the review further stated.
Further, from January 2024 to September 2024, the Commission received 30 new cases and disposed of 30 cases (including carry-forward cases from the previous year).
The Commission considered and approved mergers and acquisitions relating to various sectors of the economy such as financial markets, power & power generation, pharmaceuticals & healthcare, and digital markets.
The CCI also initiated a study on “Competition Issues in the Renewable Energy Sector across BRICS Nations”. The study report is being prepared based on inputs received from the competition authorities of BRICS nations.
Over the past two years, the Ministry has also significantly improved compliance with Section 148 of the Companies Act, 2013.
This progress is evident from a substantial increase in the filings of e-Form CRA-2 (Intimation of Appointment of Cost Auditor) and e-Form CRA-4 (Filing of Cost Audit Report). Specifically, there has been a 35 per cent increase in e-Form CRA-2 filings and a 36 per cent rise in e-Form CRA-4 filings in the fiscal year 2023-24 compared to 2021-22, the review added.
–IANS
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