The newly-enacted Insolvency and Bankruptcy Code (IBC) has forced nearly 2100 companies who have defaulted on repayment of loans to banks, to settle their dues of around Rs 83,000 crore. A loan is classified as an NPA if dues are unpaid for 90 days. The list includes many big names like Ruias of Essar, Singals of Bhushan Group and Gaurs of Jaiprakash Group.
The ministry of corporate affairs (MCA) released the data which showed that over 2,100 companies have cleared their outstanding amounts. The action was majorly due to government action which amended the IBC to explicitly bar promoters of companies that were classified as a non-performing assets (NPAs) from bidding for these companies where the National Company Law Tribunal, the bankruptcy court, initiated action.
Due to IBC, the borrowing and lending culture is changing.