New Delhi [India], Nov 24 (ANI): Ministry of Corporate Affairs (MCA) Secretary Injeti Srinivas said that the Insolvency and Bankruptcy Code (IBC) has an impact of around Rs 3 lakh crore on non-performing assets (NPAs).

Speaking to press after an event organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) at the national capital, Srinivas said, "The direct and indirect impact of the IBC is around three lakh crore. It is cumulative of resolution and pre-admission cases along with the non-standard NPA accounts being converted to standard accounts."

"The resolution cases have led to a recovery of about Rs. 71,000 crore, cases at a mature stage of resolution is about Rs. 51,000 crores, which amounts to a total of Rs. 1.2 lakh crore from resolution. The total of resolution and pre-admission settlement is close to Rs 2.4 lakh crore," the MCA secretary said.

Speaking on the number of cases that have been resolved, he said, "Out of the 9,000 cases broadly 50 per cent about 4,400 of the cases are disposed off. The equivalent cases are pending, out of which about 85 per cent or 3500 cases has been disposed off prior to admission."

Srinivas said 3,500 cases that were disposed off prior to admission were worth Rs. 1.2 lakh crore. Resolution plans have been approved in 60 cases, liquidation ordered has been given in 240 cases, and 126 cases are in appeal, he added.

The MCA secretary also declared that over the last two years, IBC has received around 9,000 cases including the cases that were transferred from the Board for Industrial and Financial Reconstruction (BIFR).

"Much of this money may not be owed to the banks alone, the Rs. 1.2 lakh crore which got settled to a considerable extent would be actually pertaining to operational creditors," asserted Srinivas.

In cases where resolution applicants have won the bid and got the resolution plan approved by the National Company Law Tribunal (NCLT) but have not paid up, Srinivas said that there are provisions in the code itself to penalise such applicants. Also, the government is examining such cases and the circumstances that are interfering with the resolution plan.

Speaking on the Infrastructure Leasing and Financial Services Limited (IL&FS) Board, Srinivas said that they called for an Expressions of Interests (EoI) for their securities firms, commodity, securities and equity two weeks back and received an overwhelming response.

"Almost all major banks, financial institutions have shown interest. So we are hopeful that the board will be able to evaluate them and come up with a proposal. EoIs will be shortly called for another 8-10 IL&FS companies," emphasised Srinivas. (ANI)

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