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New Delhi: The Ministry of Corporate Affairs (MCA) is working on enhancing recoveries from the corporate insolvency process under the Insolvency and Bankruptcy Code, MCA Secretary Manoj Goel said at an event in New Delhi on Monday.
Govil said this is in line with the government’s plan to enhance ease of doing business. He said ease of doing business includes setting up operations, conducting business and closing it efficiently.
The recovery rate in a corporate bankruptcy process means the amount of money recovered by creditors. An August 2023 analysis of 542 corporate bankruptcy processes completed under the Insolvency and Bankruptcy Code, 2016 (IBC) showed that the recovery rate was 30.8%.
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Govil said the MCA is also working on creating new accounting standards for limited liability partnerships (LLPs). He said the MCA has reduced the bankruptcy resolution period to about three months on an average. Earlier, the corporate bankruptcy process used to take up to two years, he said.
Economic Development
Govil was speaking at a function organised to mark the 75th anniversary of the Institute of Chartered Accountants of India (ICAI). Union Road Transport and Highways Minister Nitin Gadkari was also present on the occasion.
In his address, Gadkari highlighted the growth of the auto sector in India. “When I first became the Road Transport and Highways Minister in 2014, India’s auto sector was worth Rs 1,000 crore. 7.5 trillion today, ten years later, it’s worth “All of you have contributed a lot to this growth,” he said to the chartered accountants present.
ICAI focused on explaining the drive for digitisation and incorporating new technologies in the profession at the event. It introduced a generative artificial intelligence (AI) facility for practising chartered accountants. ICAI president Ranjit Kumar Agarwal said the organisation’s stance is in line with the government’s plan to make India a developed nation by 2047.
In his address, MCA Secretary Govil said India is on its way to becoming a $30 trillion economy by 2047. He said India is an economy of about $4 trillion today and the nominal gross domestic product (GDP) is expected to grow by about eight times.
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