According to the Ministry of Corporate Affairs’ year-end review, as many as 28,818 applications for the initiation of the Corporate Insolvency Resolution Process (CIRP) with an underlying default of Rs. 10.22 lakh crore were resolved before their admission until March 2024 due to the behavioural change in debtor-creditor relationship effectuated by the Insolvency and Bankruptcy Code (IBC).
Until September 2024, 1,068 CIRPs resulted in resolution plans, obtaining an average of 86.13 percent of the Corporate Debtor’s (CD) fair value. Creditors have received Rs. 3.55 lakh crore through the aforementioned settlement plans.
By June 2024, the IBC had successfully navigated 3,409 CDs through the bankruptcy process, with 1,068 resolved through plans and the rest through appeals, reviews, settlements, or withdrawals. The resolution of these CDs resulted in a realisation rate of more than 161 percent against liquidation value. According to the assessment, the average expense incurred during the resolution process is very low, accounting for only 1.37 percent of the liquidation value and 0.83 percent of the resolution value.
The IBC has ushered in a new era of transparency and fairness in insolvency resolution. The evaluation also stated that it ensures equitable treatment of all stakeholders, as well as a clear and predictable settlement mechanism.
The government is also considering establishing an Integrated Technology Platform under the Insolvency and Bankruptcy Code, 2016. This would result in increased transparency, fewer delays, more effective decision-making, and improved oversight of procedures by authorities.
Meanwhile, the Competition Commission of India (CCI) has received 1,289 antitrust cases since its inception and resolved 1,157 (almost 90%) of them as of September this year, according to the study.
Furthermore, from January 2024 to September 2024, the Commission accepted 30 new cases and resolved 30 cases (including carryover 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.
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