NCLT helped creditors recover `80k cr: FM
New Delhi: Finance Minister Arun Jaitley Thursday said Rs 80,000 crore has been recovered by creditors in 66 cases resolved by NCLT and around Rs 70,000 crore more is likely to be realised by March-end.
Accusing the Congress of leaving behind a legacy of an "anachronic system" of resolving commercial insolvency, Jaitley said the NDA government acted swiftly to recover the non-performing loans and legislated the insolvency and bankruptcy code (IBC).
He said National Company Law Tribunal (NCLT) had started receiving corporate insolvency cases by the end of 2016 and so far 1,322 cases have been admitted by it. A total of 4,452 cases have been disposed at the pre-admission stage, and 66 have been resolved after adjudication. Two hundred sixty cases have been ordered for liquidation.
"In 66 resolution cases, the realisation by creditors was around Rs 80,000 crore... Some of the big 12 cases such as Bhushan Power and Steel and Essar Steel India are in advanced stages of resolution and are likely to be resolved in this financial year in which realisation is expected to be around Rs 70,000 crore," Jaitley said.
In a Facebook post titled 'Two years of Insolvency and Bankruptcy Code', Jaitley said NCLT had become a trusted forum of high credibility.
"Those who drive the companies to insolvency, exit from management. The selection of new management has been an honest and transparent process. There has been no political or governmental interference in the cases," he added.
As per the NCLT database, in 4,452 cases disposed at the pre-admission stage, the amount settled was around Rs 2.02 lakh crore, the minister added.
Jaitley said the increase in conversion of NPAs into standard accounts and decline in new accounts falling in NPA category show a definite improvement in the lending and borrowing behaviour.