Over 2,100 firms settle Rs 83,000 crore bank dues

2100 companiesNEW DELHI: The panic of losing control over their companies has provoked promoters settle their dues of around Rs 83,000 crore, who have defaulted on repayment of loans to banks, before action was initiated under the newly-enacted Insolvency and Bankruptcy Code (IBC).

On last count, the ministry of corporate affairs (MCA) compiled the data, which demonstrated that over 2,100 companies have cleared their outstanding amounts to the respective banks, a majority of which came after the government revised the IBC act 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. A loan is classified as an NPA if dues are unpaid for 90 days.

As a result, top industry names such as Ruias of Essar, Singals of Bhushan Group and Gaurs of Jaiprakash Group, were left ineligible to bid.

Earlier this week, the acquisition of Bhushan Steel by Tata under the IBC framework led to the reduction in bad loans by around Rs 35,000 crore. NCLT has also initiated insolvency proceedings against Anil Ambani-led Reliance Communications.

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