Harsh Malhotra Highlights Success of India's Insolvency and Bankruptcy Code

India's Insolvency and Bankruptcy Code (IBC) saw 40,943 applications, resolving 28,818 worth Rs 10 lakh crore pre-admission. Minister Harsh Malhotra cited significant reforms and infrastructure improvements for efficiency. The IBC helped India advance in global rankings, enhancing its business environment.

In a recent address to the Lok Sabha, Union Minister of State for Corporate Affairs Harsh Malhotra reported the significant impact of the Insolvency and Bankruptcy Code (IBC) in India. A total of 40,943 applications were filed under the IBC, with 28,818 cases involving Rs 10 lakh crore resolved even before admission.

The introduction of the IBC in 2016 has had a profound effect on India's global business standings, improving its rank by 56 places to reach 52 in 2019 from 108 in 2018. The minister emphasized the program's efficiency, noting that 1,119 cases are currently under resolution or have been resolved. He highlighted reforms aimed at protecting home buyers during legal proceedings.

Malhotra also discussed ongoing government efforts to tackle delays in the National Company Law Tribunal (NCLT) by implementing e-court systems and hybrid court projects. Additionally, a new World Bank initiative, the B-Ready project, aims to assess various stages of business, potentially impacting India's future business climate ranking.

(With inputs from agencies.)