INSUBCONTINENT EXCLUSIVE:
Banks have been forced to put nonperforming assets (NPAs) worth ?40,000 crore up for sale in sectors such as power, roadways and telecom in
the first half of the fiscal year to September because of delays in the resolution process under the Insolvency and Bankruptcy Code (IBC)
The prescribed timeline for IBC resolution has been derailed by various stakeholders challenging the process in court.
Data from the
Insolvency and Bankruptcy Board of India (IBBI) showed that as much as 34 per cent of the 1,292 cases in the bankruptcy courts up to June
have been delayed beyond the scheduled 270 days, up from 26 per cent a year ago and 31 per cent in the March quarter, giving rise to fears
that this could make the law ineffective, as has happened to previous such endeavours
Bank of Baroda has offered assets worth ?11,000 crore, IDBI Bank is looking to sell ? 9,756 crore of assets and Andhra Bank, ?4,887
the bankruptcy process, so that banks could fix their finances, restore credit growth and drive investment
Costs as a mechanism to desist frivolous litigation is used extensively by courts overseas, especially the insolvency tribunal in the
(RBI) in 2017, including Jaypee Infratech, Amtek Auto, and Bhushan Power - Steel, are yet to be resolved
30 ARCs bought assets worth ?24,000 crore from banks in the last financial year.
ARCs have to pay 15 per cent of the purchase consideration
as per current regulatory norms while the remaining can be picked up by qualified institutional buyers, many of them overseas entities such
in the banking system are pegged at ?9.3 lakh crore
