Finance Minister Nirmala Sitharaman said on July 23 that 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 an integrated technology platform for improving outcomes under the Code, along with additional debt recovery tribunals to be set up in the country.

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While presenting the Union Budget for 2024-25, she proposed the development of digital public infrastructure applications 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 the realisation of  ₹ 3.3 lakh crore to creditors.

Defaults worth ₹ 10.2 lakh crore have been settled at the stage of pre-admission of insolvency cases since the inception of the IBC in 2016, and more than one-fifth of the companies undergoing resolution processes are from the real estate space, the Economic Survey said on July 22.

Also Read: Economic Survey 2023-24: Outlook for real estate sector encouraging; terms stalled projects as challenging

Since FY18, the IBC has enabled over ₹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.

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