Chennai: The latest controversy involving Essel Group Chairman Subhash Chandra has highlighted discrepancies in the Insolvency and Bankruptcy Code (IBC). Creditors have had to take a nearly 70 per cent haircut on their claims, while insolvency proceedings often extend to more than twice the prescribed timeline. By then, many distressed companies lose significant value.
Saurabh Bhalerao, Director at CareEdge Ratings, said the IBC needs reforms, including increased judicial capacity, reduced litigation-related delays, stronger early-warning and pre-insolvency restructuring mechanisms, and improved information quality and transparency.
As of June 30, 2026, a total of 9,166 companies had been admitted to the Corporate Insolvency…