New Delhi, March 25 The introduction of the Insolvency and Bankruptcy Code (IBC) has led to the recovery of over ₹4 lakh crore in the last decade through the resolution of bankrupt companies, senior BJP MP Anurag Thakur said in the Lok Sabha on Wednesday.
Participating in the debate on the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, Thakur said that the IBC is not a recovery mechanism but a revival and resurrection of the company.
The IBC, enacted in 2016, has achieved a recovery of 50 per cent, while the SARFAESI Act, 2002 (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) has achieved a recovery of 20 per cent, and the Debts Recovery Tribunals have achieved a recovery of 10 per cent, he said, adding, "This indicates greater efficiency of the IBC."
It has changed the debtor-creditor relationship, and companies and promoters are now wary of entering insolvency proceedings after the IBC.
Citing examples, he said that about 32,000 applications have been withdrawn, and the underlying debt of over ₹14.5 lakh crore has been settled.
On August 12, 2025, the government introduced a bill in the Lok Sabha to amend the Insolvency and Bankruptcy Code (IBC), proposing a series of changes, including provisions to reduce the time taken for the admission of insolvency resolution applications.
The bill, which was referred to a select committee of the Lok Sabha, has also submitted its report in December, 2025. The Code, introduced in 2016, has undergone six legislative interventions since its enactment, and the last amendment was made in 2021. The proposed amendment would help in faster clearance of IBC cases and out-of-court resolution, he said.
Cross-border insolvency provisions have been added to the legislation, and discretionary provisions are also being addressed, he added.