Insolvency & Bankruptcy Code: Insolvency & Bankruptcy Code (IBC) vs Board of Industrial and Financial Reconstruction (BIFR) | Delhi News

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NEW DELHI: FM Nirmala Sitharaman on Thursday stated that the seven-year-old Insolvency & Bankruptcy Code (IBC) has helped rescue 3,171 distressed corporations and assisted within the closure of unviable ones — a pointy distinction to lower than 3,500 instances being resolved by the erstwhile Board of Industrial and Financial Reconstruction (BIFR) throughout its life of over 30 years, beginning 1987.
In a social media publish, the FM stated the regulation enacted by the Modi govt has additionally helped enhance company governance as there’s a “credible threat” {that a} promoter or administration can lose management over an organization that defaults in repaying to collectors.
Pointing to a shift in the direction of extra accountable credit score behaviour, she stated, as much as March 2024, over 28,000 purposes involving defaults of over Rs 10 lakh crore had been withdrawn earlier than their admission as corporations opted to clear the dues of collectors.
FM stated that the regulation had introduced a paradigm shift within the debtor-creditor relationship and offered a streamlined, one-stop answer for resolving insolvencies, whereas prioritising decision over liquidation and serving to protect jobs and the worth of belongings.
“IBC has played a key role in helping banks recover from the NPA crisis created by @INCIndia and its allies during the UPA years through ‘phone banking’ and indiscriminate lending. IBC has built trust and transparency in the financial system,” Sitharaman tweeted, whereas vowing to strengthen the capacities of NCLT and NCLAT by expeditiously filling vacancies.

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Nilesh Desai
Nilesh Desaihttps://www.TheNileshDesai.com
The Hindu Patrika is founded in 2016 by Mr. Nilesh Desai. This website is providing news and information mainly related to Hinduism. We appreciate if you send News, information or suggestion.

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