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India's Insolvency Code Delivers Record ₹67,000 Crore Recovery in FY25

A revitalized tribunal and regulatory reforms drive a 42% surge in recoveries and a record 284 resolutions under the IBC framework.

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Overview

  • Creditors recovered over ₹67,000 crore in FY25, a 42% increase from the previous year’s ₹47,206 crore, marking the highest annual recovery since the IBC's inception.
  • The National Company Law Tribunal (NCLT) approved a record 284 resolutions, including 267 corporate and 17 personal insolvency cases, reflecting growing efficiency in the insolvency process.
  • Tribunal staffing improved significantly, with only three of 63 sanctioned positions vacant by March 2025, enhancing case throughput and resolution timelines.
  • New insolvency admissions rose to 1,346 in FY25, while personal insolvency filings nearly doubled to 673, signaling broader adoption of the IBC framework.
  • Legal and procedural reforms, including pre-packaged insolvency schemes and mediation mechanisms, contributed to faster resolutions, though litigation delays remain a challenge.