In the insolvency of real estate companies, 212 applications pertaining to real estate sector were admitted for Corporate Insolvency Resolution Plan (CIRP) under the Insolvency & Bankruptcy Code (IBC), of these, 8 cases were resolved, 65 cases have been settled or withdrawn and 23 cases were ordered for liquidation and for rest, process is ongoing. This was stated by Union Minister of State for Corporate Affairs Shri Rao Inderjit Singh in a written reply to a question in Lok Sabha on August 02, 2021.
The Minister further said that the insolvency resolution process is market driven and the outcome depends on market forces.
The Minister stated that Insolvency and Bankruptcy Code (the Code) was enacted on May 28, 2016 and the Insolvency and Bankruptcy Board of India was established on October 01, 2016 to exercise regulatory functions under the Code. Further, the provisions for corporate insolvency resolution process (CIRP) were notified w.e.f. December 01, 2016.
The Press Release can be accessed at: https://www.pib.gov.in/PressReleasePage.aspx?PRID=1741629