The government has said that financial creditors have recovered Rs 47,000 crore in 26 cases through the Insolvency and Bankruptcy Code (IBC), The New Indian Express has reported. IBC was introduced by the Narendra Modi government to tackle the Non Performing Assets (NPA) problem.
The code provides for a time-bound and transparent framework by balancing the interests of all stakeholders and maximises the value of stressed assets. It was introduced in 2016 intending to solve the NPA mess and improve the business climate in the country.
“The financial creditors have realised claims of approximately Rs 47,426.75 crore in 26 cases where resolution plans are submitted under the IBC framework since its enactment,” minister of state for corporate affairs PP Chaudhary is quoted to have said in a written reply to Rajya Sabha.
In another reply, the minister informed the house that 2,26,166 companies have been struck off for being inactive and not adhering to statutory guidelines.
In another report, it was stated that government-owned State Bank of India expects to recover half of the assets that had turned into NPAs through the first list of 12 bad loans scheduled for recoveries by the Reserve Bank of India (RBI).
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