Raising concerns, credit rating agency, ICRA in its latest report has said that the delays in the resolution process beyond the 270-day period have cost the lenders to the first 'dirty list' of 12 large defaulters a whopping Rs 4,000 crore in interest income foregone.
The rating agency further noted that out of the list, only four cases have been resolved so far and the rest cases have crossed 450 days since being admitted by the National Company Law Tribunal (NCLT). Further detailing about the cases, ICRA said that after the bankruptcy laws were passed in May 2016, that pending corporate insolvency cases under the IBC surged to 816 as of the September quarter, from 723 in the June quarter.
ICRA also expressed need for reduction in the timelines for completion of the resolution process to strengthen the IBC process. It further said that another way to speed up the resolution is to lower the minimum threshold of Rs 1 lakh in dues to approach the NCLT.