Union Budget 2024| Changes will be made to Insolvency and Bankruptcy Code to strengthen tribunals, says Nirmala Sitharaman

New Delhi: Finance Minister Nirmala Sitharaman on Tuesday said appropriate changes will be made to the Insolvency and Bankruptcy Code (IBC) and steps will be taken to strengthen tribunals in the country.

She also proposed integrated technology platform for improving outcomes under the Code, besides additional debt recovery tribunals to be set up in the country.

While presenting the Union Budget for 2024-25, she proposed the development of digital public infra application for productivity gains, business opportunities and innovation by the private sector.

She informed that the IBC has resolved more than 1,000 cases, which has resulted in realisation of Rs 3.3 lakh crore to creditors.

Defaults worth Rs 10.2 lakh crore have been settled at the stage of pre-admission of insolvency cases since the inception of IBC in 2016, and more than one-fifth of the companies undergoing resolution process are from the real estate space, the Economic Survey said on Monday.

Since FY18, the IBC has enabled over Rs 3 lakh crore recovery for banks, which was much more than what lenders recovered through previous mechanisms of Lok Adalats, DRTs, and the SARFAESI Act, it said.

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Since the implementation of IBC in 2016, a total of 31,394 corporate debtors cases "involving a value of Rs 13.9 lakh crore" have been disposed of (including pre-admission case disposals) as of March 2024.

Union Budget 2024 LIVE | Making a record for any Finance Minister, Nirmala Sitharaman presented her 7th consecutive Union Budget on July 23, 2024 under the Modi 3.0 government. This Budget brought tax relief for the middle class, while focusing on jobs through skilling, incentivising employers. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.