More number of cases have been closed by liquidation than by resolution ever since the corporate insolvency resolution process (CIRP) came into effect from December 1, 2016, going by the status of CIRPs as on March 31, 2020.
As per the Reserve Bank of Indias latest Financial Stability Report (FSR), about 57 per cent (914 cases) of the CIRPs were closed under liquidation and only about 14 per cent (221 cases) ended with resolution plans.
It is, however, important to note that 73 per cent of the CIRPs that ended in liquidation (637 out of 879, of which data is available) were earlier with the Board of Industrial and Financial Reconstruction (BIFR) or defunct and the economic value of most of these corporate debtors had already eroded befo…
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