BHUBANESWAR: The regulatory authority is making all arrangements for implementation of individual insolvency norms in the country as soon as possible, said Insolvency and Bankruptcy Board of India (IBBI) chairman, MS Sahoo.
Speaking at a national conference organised by Indian Chamber of Commerce (ICC) on Insolvency and Bankruptcy Reforms: Code Demystified here on Saturday, Sahoo said work has already begun on group insolvency norms. "Around 300 companies are under voluntary liquidation process and more than 1,000 corporate debtors are under corporate insolvency process.
The debtors who were earlier making late payment of their loan dues are willing to pay after the Insolvency and Bankruptcy Code (IBC) was amended," he said.
The IBBI chairman cautioned defaulters for delayed payments. He said once a case is filed in National Company Law Tribunal (NCLT), it will become very difficult to get back their company. Even one cannot submit a resolution plan also. So the debtors need to be careful, he warned. "Lenders have been able to recover more than `81,000 crore from debtors through insolvency process in a short span of two years. The recovery amount is expected to be more in coming years," Sahoo added.
Finance Minister Shashi Bhusan Behera said resolving insolvency will improve investment scenario in the State as investors would like to acquire valuable assets at attractive prices and reap lucrative double-digit returns. "A well regulated insolvency code would definitely instill a sense of urgency among all stakeholders to resolve bad loans," he observed.
Co-Chair of ICC Odisha expert committee J B Pany said the insolvency and bankruptcy code allows lenders to drag defaulters to court to recover dues.
Among others, chairman of ICC expert committee on IBC Ashish Chhawchharia and Convenor of Finance and Taxation panel AK Sabat also spoke.