The Institute of Chartered Accountants of India (ICAI) has proposed a series of strategic reforms to strengthen the Insolvency and Bankruptcy Code (IBC), 2016, emphasising the need for stricter adherence to timelines and improved value realization in the Corporate Insolvency Resolution Process (CIRP).
In its latest study, ICAI highlighted that while the IBC has significantly transformed India’s insolvency regime, delays in resolution and asset value erosion remain persistent challenges. As of September 2024, only 13.3% of CIRPs concluded with approved resolution plans, while 32.9% ended in liquidation, often after breaching the mandated 330-day deadline.
Recommendations for Reform
The ICAI report makes several key…
