A senior government official said on Saturday that the Bankruptcy Act has helped in addressing the stressed assets of Rs 3 lakh crore directly and indirectly in the last two years. Under the Bankruptcy and Bankruptcy Code (IBC), more than 9,000 cases have come for redress, which became fully operational in December 2016. Corporate Affairs Secretary Injeeti Srinivas said that the Code has a direct and indirect impact on assets with tension of Rs 3 lakh crore. Estimated amount, under the Code, is carried out through the resolution of the National Company Law Tribunal (NCLT) through resolution plans and cases. Under the Code, after approval from the NCLT cases are raised for resolution. Referring to the cases in the mature phase being addressed under the Code, he said that this amount would be Rs. 50,000 crores.
Apart from this, the Secretary of Corporate Affairs noted that there are non-standard NPA accounts which have been converted into standard accounts by paying overdue amount on the basis of borrowers and this figure is 45,000-50,000 crore rupees. He said that in the case of tension-related assets, directly and indirectly affected by code, the amount will be close to Rs 3 lakh crore. Srinivas also said that most of the money can be related to operational creditors. MS Sahu, President, Bankruptcy and Bankruptcy Board of India (IBBI) said that it has not been advised to rely on code specifically to solve all the problems, which states that everyone should play their role under the code. They were speaking at a conference on 'ensuring efficiency in the resolution process'.