Companies sold for a song under new Law
Realization comes down from 55% to 20% in 2026
1419 companies gone for Rs 4.24 lakh crores
Harish Gupta
Even as the government claimed that as much as Rs 4.24 lakh crores have been realised to the creditors under the Insolvency and Bankruptcy Code,2016 (IBC), it emerged that the realisation has been falling year after year.
If the realisation was 54% in 2017-2018 and 55% next year, it fell to as low as 20% during the 2025-26 financial year.
During the last nine years, a total of 1,419 cases have yielded resolution plans under Insolvency and Bankruptcy Code. These cases have led to a realisation of Rs. 4.24 lakh crore to the creditors.
The government also claimed that the IBC has enhanced the ease of doing business by providing a time bound and transparent mechanism for resolving insolvency, improving investor confidence and credit availability.
As per the RBI’s Financial Stability Report of June 2026, the Gross Non-Performing Assets (GNPA) ratio of Scheduled Commercial Banks has declined from its peak of 11.2% in March 2018 to a low of 1.8% in March 2026.
However, the government asserted that the IBC is a legal framework for insolvency resolution and is market driven and recoveries by creditors reflect the underlying asset quality and the commercial viability of the distressed enterprise. The term “haircut” has not been defined or used in IBC.
The agony is that a total of 14,813 cases are pending as on March 31, 2026 before the NCLT for resolution. The government conceded it in Parliament and gave out the information that realisation in 2025-26 was as low as 20%.
Period Amount (cr) Realisation as %
2017-2018 3807 54%
2018-2019 1,07,321 55%
2019-2020 39,043 27%
2020-2021 27,102 27%
2021-2022 46,198 24%
2022-2023 54,125 39%
2023-2024 44,736 28%
2024-2025 54,604 37%
2025-2026 42,003 20%
