Delays in IBC insolvency cases threaten efficiency

The Insolvency and Bankruptcy Code (IBC) in India is facing delays in resolving cases.

On average, it takes 603 days to complete a resolution plan, which is way above the 330-day limit set by law.

Cases that end in liquidation take around 518 days, while voluntary liquidation processes take about 397 days.

These delays are due to various reasons like complex procedures, court backlogs, and people trying to delay the process.

Experts say that to make the IBC work better, there need to be stricter rules and penalties for not following the timelines.

Despite these challenges, creditors have managed to recover ₹3.96 lakh crore from resolution plans.