New Delhi, The introduction of the Insolvency and Bankruptcy Code (IBC) has led to the recovery of over Rs 4 lakh crore in the last decade through the resolution of bankrupt companies, senior BJP MP Anurag Thakur said in the Lok Sabha on Wednesday.
Participating in the debate on the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, Thakur said IBC is not a recovery mechanism but a revival and resurrection of the company.
The IBC enacted in 2016 has done a recovery of 50 per cent, while the SARFAESI Act, 2002 (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) has done a recovery of 20 per cent, and the Debts Recovery Tribunals have done a recovery of 10 per cent, he said, adding, “This indicates greater efficiency of IBC.”
It has changed the debtor-creator relationship and companies and promoters are afraid of getting into insolvency after IBC.
Citing instances, he said, about 32,000 applications have been withdrawn and the underlying debt of more than Rs 14.5 lakh crore has been settled.
On August 12, 2025, the government introduced a bill in the Lok Sabha to amend the Insolvency and Bankruptcy Code (IBC), proposing a raft of changes, including provisions to reduce the time taken for admission of insolvency resolution applications.
The bill, which was referred to a select committee of the Lok Sabha, has also submitted its report in December, 2025. The Code, introduced in 2016, has undergone six legislative interventions since its enactment and the last amendment was made in 2021. The amendment proposed would help in faster clearance of IBC cases and out-of-court resolution, he said.
Cross border insolvency provision has been added in legislation and discretionary provisions are also being addressed, he added. PTI
