16th April, 2019
3rd Floor, Times of India Building
Opposite CST Railway Station
Dr. D. N. Road
Fort, Mumbai — 400001
This has reference to the article titled: “Banks’ Recoveries from IBC Cases Falling” in ‘The Economic Times’ dated 16th April, 2019.
The said article, interalia, carries the following statements:
(a) “Data from the Insolvency and Bankruptcy Board of India (IBBI) shows that till September, financial creditors could only get 25% of their claims under the code.”; and
(b) “Data from IBBI shows that out of the 142 cases closed, 63 have been withdrawn under section 12(A)…..
It is clarified that the IBBI data do not support either of the above statements or the title of the article.
3. As regards the statement at 2(a) above, it appears that the information in Part A of Table 6 in the October – December, 2018 newsletter has not been read correctly. Part A presents only those corporate insolvency resolution processes (CIRPs), which yielded resolution plans before 30th September, 2018, but were reported later. It does not present all CIRPs, which yielded resolution plans till September, 2018. The details of CIRPs of corporate debtors yielding resolution plans as on 31st December, 2018 are available at: https://ibbi.gov.in/webadmin/pdf/whatsnew/2019/Feb/Copy%20of%20For%20website-publication-resolution%20Dec-2018%20Amended_2019-02-22%2022:54:14.pdf
(Soft copy attached for easy reference).
4. As regards the statement at 2(b) above, it appears that the information in Table 1 in the October – December, 2018 newsletter has not been read correctly. The said table presents that till 31st December, 2018, 142 CIRPs have been closed by appeal / review / settlement, and another 63 have been closed by withdrawal under section 12A.
5. In view of the above, we request you to kindly publish this letter prominently in ‘The Economic Times’ to enable the readers to have a correct perspective.