Lok Sabha Question No. 3678 (UNSTARRED), answered on 2022-08-08
Subject: Resolutions under IBC
Ministry: CORPORATE AFFAIRS
Asked by: Jagdambika Pal

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

UNSTARRED QUESTION NO. 3678 ANSWERED ON MONDAY THE 8 TH  AUGUST, 2022 SRAVANA 17, 1944 (SAKA)

## RESOLUTION UNDER IBC QUESTION

3678. SHRI JAGDAMBIKA PAL:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) the  details  of  resolutions  in  the  real  estate  sector  that  have  taken  place  in accordance with the Insolvency and Bankruptcy Code (IBC) framework during the last financial year;
- (b) whether the progress on the resolutions under the IBC framework of some of the housing projects has been slow as reported by various media houses and if so, the reasons therefor;
- (c) whether the Government has taken/proposed to take any steps to escalate the pace of resolutions under the IBC framework of these housing projects; and
- (d) if so, the details thereof?

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION; MINISTER OF STATE (INDEPENDENT CHARGE) OF THE  MINISTRY  OF  PLANNING;  AND  MINISTER  OF  STATE  IN  THE  MINISTRY  OF CORPORATE AFFAIRS

[RAO INDERJIT SINGH]

(a): In the financial year 2021-2022, 210 applications pertaining to real estate sector were  admitted for corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (the Code). Of these, 18 have been resolved, 60 cases have been settled or withdrawn, 63 cases were ordered for liquidation and for the remaining cases, the process is ongoing.

(b): Insolvency resolution process for any corporate debtor (CD) is conducted as per the  provisions  of  the  Code  and  Rules/Regulations  made  thereunder.  CD  undergoing CIRP is resolved through a resolution plan formulated by resolution applicants based on market driven process. The committee of creditors within its commercial wisdom assesses the feasibility and viability of the resolution plan submitted by the proposed resolution applicant which is then approved by the Adjudicating Authority. Further, the time taken for resolution depends on several factors including the nature of business, business cycles, market sentiments and marketing effort. As on 30th June 2022, total 1,999 CIRPs are ongoing out of which only 436 are in real estate sector. During COVID19  pandemic  period,  there  has  been  a  general  slowdown  in  the  distressed  asset market. (c)  &  (d):  The  Government  has  a  regular  mechanism  available  to  monitor  and strengthen  the  implementation  of  the  Code  through  Insolvency  Law  Committee, constituted under Chairmanship of Secretary, MCA, which makes recommendation to the Government on issues arising from functioning and implementation of the Code as well as on the recommendations/representations received from various stakeholders. Recently, Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 have been amended on 14th June, 2022 to facilitate submission of additional documents with application for CIRP to ease the admission process and responsibility of creditors to provide report on CD available with them to resolution professional.

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