'Insolvency resolution time will come down by at least 50%'

The Insolvency and Bankruptcy Code (IBC) is getting ready for its biggest overhaul in over nine years of its existence.

- Baijayant Panda, chairperson of the select committee and member of parliament, speaks to Manu Kaushik and Prasanta Sahu

What is the broader theme of the suggestions made by the select committee?

Over the past nine years, the IBC has been revolutionary. After its implementation in 2016, the bank situation has turned around dramatically. The statistic that really caught our attention was that over the last 2-3 years, recoveries of ₹50,000-60,000 crore are happening every year. It is a big amount of money that is coming back into the economy because it was stuck earlier due to lack of a bankruptcy formula.

The timelines are still a major issue under the IBC. That has been the major focus of the Bill. The timelines are strictly defined now. Earlier, they had been left open and suggestive. Now, they have gone from "may" to "shall". Situations which were taking 3-4 years will happen within one year now.

Which according to you are the major points?