The government is working on an integrated platform for the insolvency ecosystem covering key stakeholders that will also help speed up resolution processes. The Insolvency and Bankruptcy Code (IBC), which came into force in 2016, aims to provide market-linked and time-bound resolution of stressed assets. However, there have been delays in the resolution process.
Anita Shah Akella, Joint Secretary at the Ministry of Corporate Affairs (MCA), on Tuesday emphasised that IBC is not a recovery mechanism but a rescue mechanism.
She was speaking at a conference in the national capital to mark the eighth annual day of the Indian Institute of Insolvency Professionals of ICAI.
While mentioning various steps taken and also being planned to further improve IBC resolutions, she said the ministry is working on having an integrated platform for the insolvency ecosystem.
“(It will be a) federated architecture that will push and pull data as and when required,” she noted.
The platform will connect MCA, Insolvency and Bankruptcy Board of India (IBBI), National Company Law Tribunal (NCLT), National Company Law Appellate Tribunal (NCLAT) and insolvency professionals, among others. It will have various features such as red flags in case of delays and alerts on the app, she added.
As per official data, a total of 1,963 CIRP (Corporate Insolvency Resolution Process) cases are ongoing and out of them, 1,388 have exceeded the time limit of 270 days.
Creditors have recovered around Rs 3.55 lakh crore through resolution of 1,068 cases under the insolvency law till September this year, the data shared by the ministry with the Lok Sabha on Monday showed.
