As many as 1,999 cases of corporate insolvency resolution process were going on under the insolvency law as of June this year, according to the government. The resolution for corporate debtors is done under the Insolvency and Bankruptcy Code which provides for resolution through a market-driven process.
Minister of State for Corporate Affairs Rao Inderjit Singh said the time taken for the Corporate Insolvency Resolution Process (CIRP) depends on several factors, including the nature of business, business cycles, market sentiments and marketing effort.
"As on 30th June 2022, total 1,999 CIRPs are ongoing out of which only 436 are in the real estate sector. During COVID-19, pandemic period, there has been a general slowdown in the distressed asset market," the minister said.
In the last financial year, 210 applications pertaining to the real estate sector were admitted for CIRP under the Code. Out of them, 18 cases have been resolved, 60 have been settled or withdrawn and in 63 cases, liquidation has been ordered. The process is going on in the rest of the cases. The minister realisation by creditors through CIRP under the Code is dependent on quality assets at the time of its resolution, Singh said.
Insolvency and Bankruptcy Board of India (IBBI) receives complaints and grievances from Centralised Public Grievance Redress and Monitoring System (CPGRAM), the Prime Minister's Office, the corporate affairs ministry and other authorities. "Till 31st July, 2022, the IBBI had received 6,231 such complaints and grievances, of which 6,172 have been disposed of after examination. Further, as per information available, Directorate of Enforcement has received one complaint against an RP (resolution professional) of one CIRP in which appropriate action under applicable law has been taken," he said.