The IBC, under which cases started flowing in from January 2017, has been one of the biggest financial reforms in the current year to tackle non-performing assets (NPA) in the banking sector and is a precursor to banks restarting lending after getting back stuck capital.
Explaining the numbers, the secretary said while the resolution of the 60 cases have so far yielded around Rs 71,000 crore, some Rs 50,000 crore is expected to be recovered from Essar Steel, which is at the advanced stage of being resolved.
Insolvency Law Committee (ILC), constituted by Ministry of Corporate Affairs, said inclusion of cross-border insolvency chapter in the IBC would be a major step forward and would bring the law on par with that of matured jurisdictions.
The Indian Navy too is tracking the insolvency proceedings of ABG Shipyard after the Navy was forced last year to terminate shipbuilding contracts worth Rs 1,455 crore five years after it was first awarded to the firm.
The Bill replaced the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018, which was approved by President Ram Nath Kovind last month. A total of Rs 4 lakh crore worth of stressed assets are currently undergoing resolution under the IBC.