Creditors in India have successfully recovered Rs 3.58 lakh crore through resolution plans under the Insolvency and Bankruptcy Code (IBC) by December 31, 2024. Official data reveals that 1,119 cases were resolved under the law, while 2,707 cases ended in liquidation orders. In total, 1,274 cases resulted in recoveries of Rs 0.13 lakh crore for creditors.
Creditors in India have recovered a total of Rs 3.58 lakh crore through the resolution of 1,119 cases under the Insolvency and Bankruptcy Code (IBC), according to the latest data released by the government. This significant recovery was reported until December 31, 2024.
Minister of State for Corporate Affairs, Harsh Malhotra, shared these findings with the Rajya Sabha, citing data from the Insolvency and Bankruptcy Board of India (IBBI). As of the end of 2024, a total of 2,707 cases ended in liquidation, whereas 1,274 cases contributed to a recovery of Rs 0.13 lakh crore for creditors.
The Insolvency and Bankruptcy Code, established in 2016, was introduced to streamline the process of resolving stressed assets and improving the ease of doing business in India. The code has become a critical tool in tackling the rising number of corporate defaults and financial duress within the Indian economy.
India’s corporate landscape has seen a remarkable shift with the adoption of the IBC, enhancing transparency, accountability, and efficiency in resolving financial distress. The successful implementation of the code is further evident in the substantial recoveries that continue to be made, helping creditors recover a significant portion of the defaulted amounts.
This milestone underscores the effectiveness of India’s insolvency law in addressing corporate insolvencies and ensuring that creditors receive a fair share through resolution mechanisms, benefiting the overall economy.
