DFS Urges Quick Resolution in Pending IBC Cases

The Department of Financial Services reviewed pending IBC cases, urging banks for swift action and coordinated approaches. Emphasizing adherence to timelines, the meeting called for streamlined collaborations and strategic initiatives to enhance recoveries and maximize asset value.

M. Nagaraju, Secretary of the Department of Financial Services, led a crucial review meeting today addressing the backlog of pending IBC cases. In attendance were senior officials from DFS, the Insolvency and Bankruptcy Board of India, and executives from Public Sector Banks, according to a Ministry of Finance press release.

The gathering acknowledged the progress of cases admitted into and resolved through the National Company Law Tribunal (NCLT), as well as those settled outside the formal IBC framework. An in-depth review of cases waiting for admission and resolution at NCLT was conducted, with the Secretary stressing the importance of adhering to timelines for the Corporate Insolvency Resolution Process (CIRP) applications and subsequent resolutions.

The Secretary, during talks on Resolution Plans pending with the Committee of Creditors (CoC), advised banks to adopt a coordinated strategy to conclude decisions effectively. Additionally, banks were urged to work closely with their legal advisors to facilitate the early admission of cases, thereby ensuring a robust and efficient resolution process. The notification highlighted the need for Resolution Professionals to comply with the IBBI circular from November 4, which mandates filing undertakings with the Special PMLA Court for asset restitution attached by the Enforcement Directorate.

Chief Executives from all Public Sector Banks were directed to closely monitor the 20 top unresolved cases and 10 unresolved accounts at NCLT related to their institutions. The Secretary urged swift action to finalise cases with pending Resolution Plans at CoC. Banks were also encouraged to implement a strategic approach to enhance the IBC ecosystem, aiming to maximize asset recovery and streamline processes. (ANI)

(With inputs from agencies.)