In last financial year, 210 applications pertaining to real estate sector were admitted for CIRP under the Code. Out of them, 18 cases have been resolved, 60 have been settled or withdrawn and in 63 cases, liquidation has been ordered. The process is going on in the rest of the cases.
The resolution for corporate debtors is done under the Insolvency and Bankruptcy Code which provides for resolution through a 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 COVID-19 pandemic period, there has been a general slowdown in the distressed asset market,” said Minister of State for Corporate Affairs Rao Inderjit Singh