Claims on dubious pre-IBC deals swell

At ₹4 lakh crore, amount matches entire sum recovered via IBC in 10 yrs

- Gireesh Chandra Prasad

Banks are trying to reverse questionable bankruptcy transactions made by executives before firms entered bankruptcy proceedings.

(MINT)

While creditors handhold bankruptcy resolution and recover debt from rescue packages, dubious pre-bank-Tuptcy deals are building up a mountain of claims in the background.

Creditors’ claims on shady transactions done right before bankruptcy admission are approaching ₹4 lakh crore, data from the insolvency regulator showed, matching what they have so far realized through bankruptcy courts in the last 10 years.

Banks are trying to reverse ₹3.97 lakh crore worth of questionable transactions executed by former promoters and executives before companies formally entered bankruptcy proceedings, latest data from the Insolvency and Bankruptcy Board of India (IBBI) showed. The amount compares with the ₹3.99 lakh crore that creditors actually recovered through debt resolution or set-