A total of 1,999 insolvency cases were ongoing as of June 2022: government

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According to the government, as many as 1,999 cases of corporate insolvency resolution proceedings were pending under the insolvency law as of June this year.

Resolution of corporate debtors is carried out under the Insolvency and Bankruptcy Code, which provides for resolution through a market-based process.

In a written response to the Lok Sabha on Monday, Minister of State for Commercial Affairs Rao Inderjit Singh said the time taken for the Business Insolvency Resolution Process (CIRP) depends on several factors including the nature of the business, economic cycles, market sentiment and marketing. effort.

“As of June 30, 2022, a total of 1,999 CIRPs are outstanding, of which only 436 are in the real estate sector. During the period of the COVID-19 pandemic, there has been a general slowdown in the distressed asset market,” said said the minister.

He answered questions related to resolutions in the real estate sector.

During the last fiscal year, 210 requests relating to the real estate sector were admitted to CIRP under the Code. Of these, 18 cases have been resolved, 60 have been settled or withdrawn, and in 63 cases liquidation has been ordered. The process is continuing in the rest of the cases, Singh said.

Responding to another question, the Minister said that realization by creditors through the CIRP under the Code depends on quality assets at the time of its resolution.

In a separate written response, Singh said the Board of Insolvency and Bankruptcy of India (IBBI) receives complaints and grievances from the Government’s Centralized Grievance Handling and Monitoring System (CPGRAM), Prime Minister’s Office , the Ministry of Commercial Affairs and other authorities.

“As of July 31, 2022, the IBBI had received 6,231 such complaints and grievances, of which 6,172 were resolved after review.

“In addition, according to the information available, the Enforcement Department received a complaint against a PR (resolution professional) from a CIRP in which appropriate measures under applicable law were taken”, a- he declared.

Additionally, CBI received a complaint of abuse of process in a CIRP matter which was forwarded to the regulator and upon review, the regulator found no actionable material, Singh added.

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