Finance Minister Advocates for Strengthening Insolvency Framework and Tribunals

Finance Minister Nirmala Sitharaman has announced plans to update the Insolvency and Bankruptcy Code and bolster tribunals across India. She also suggested an integrated technology platform to enhance code outcomes and additional debt recovery tribunals. The IBC has resolved over 1,000 cases, yielding Rs 3.3 lakh crore for creditors.

Finance Minister Nirmala Sitharaman on Tuesday pledged changes to the Insolvency and Bankruptcy Code (IBC) and measures to improve the strength of tribunals in India.

She proposed an integrated technology platform to enhance outcomes under the Code, along with setting up additional debt recovery tribunals across the country.

The Union Budget 2024-25 included plans for digital public infrastructure to foster productivity, business opportunities, and private sector innovation.

Sitharaman noted that over 1,000 cases resolved by the IBC have resulted in Rs 3.3 lakh crore being recovered for creditors.

According to the latest Economic Survey, since its inception in 2016, the IBC has settled defaults worth Rs 10.2 lakh crore at the pre-admission stage and enabled over Rs 3 lakh crore recovery for banks, significantly outpacing prior mechanisms.

By March 2024, 31,394 corporate debtors involving Rs 13.9 lakh crore had their cases disposed of under the IBC, including pre-admission case disposals.