ICRA Backs IBC Changes, Flags Realty Risks

02 Jan 2026 CW Team

ICRA noted that the real estate and construction sector continues to account for the second-highest share of cases under the Corporate Insolvency Resolution Process (CIRP). Despite policy measures aimed at protecting homebuyers and resolving stalled housing projects, the proposed amendments do not include sector-specific reforms. As a result, the agency said the benefits of the changes are likely to accrue mainly to non-real estate cases.

Since its introduction in October 2016, the IBC has enabled recoveries of around Rs 4 trillion, outperforming other recovery mechanisms. Even so, lenders continue to face steep haircuts, with average recoveries under successful resolution plans at about 32 per cent of admitted claims as of September 2025.

ICRA highlighted a worrying trend of lengthening resolution timelines. Nearly three-fourths of ongoing CIRP cases have exceeded 270 days after admission, far beyond the stipulated period. Persistent delays at the National Company Law Tribunal remain a major bottleneck, with more than 30,000 cases pending as of March 2025. At the current pace, the agency said, clearing the backlog could take over a decade.

Among the key reforms under consideration are the introduction of group insolvency, cross-border insolvency, creditor-initiated insolvency and the option to allow multiple or asset-wise resolution plans. ICRA said these measures could improve outcomes, particularly for companies with diversified businesses.

However, the agency stressed that expanding the capacity of the National Company Law Tribunal and the National Company Law Appellate Tribunal will be critical to ensuring that the proposed reforms translate into faster and more effective insolvency resolutions.

Manushree Saggar, Senior Vice President at ICRA, said the recommendations of the Standing Committee on Law and Business, if implemented, are expected to improve recovery rates and shorten CIRP timelines under the IBC, but added that tribunal delays continue to be the key constraint.

Credit rating agency ICRA has termed the proposed amendments to the Insolvency and Bankruptcy Code (IBC) encouraging, saying they could help improve recovery rates and reduce resolution timelines. However, it cautioned that long-standing structural challenges in the real estate sector remain largely unaddressed. ICRA noted that the real estate and construction sector continues to account for the second-highest share of cases under the Corporate Insolvency Resolution Process (CIRP). Despite policy measures aimed at protecting homebuyers and resolving stalled housing projects, the proposed amendments do not include sector-specific reforms. As a result, the agency said the benefits of the changes are likely to accrue mainly to non-real estate cases. Since its introduction in October 2016, the IBC has enabled recoveries of around Rs 4 trillion, outperforming other recovery mechanisms. Even so, lenders continue to face steep haircuts, with average recoveries under successful resolution plans at about 32 per cent of admitted claims as of September 2025. ICRA highlighted a worrying trend of lengthening resolution timelines. Nearly three-fourths of ongoing CIRP cases have exceeded 270 days after admission, far beyond the stipulated period. Persistent delays at the National Company Law Tribunal remain a major bottleneck, with more than 30,000 cases pending as of March 2025. At the current pace, the agency said, clearing the backlog could take over a decade. Among the key reforms under consideration are the introduction of group insolvency, cross-border insolvency, creditor-initiated insolvency and the option to allow multiple or asset-wise resolution plans. ICRA said these measures could improve outcomes, particularly for companies with diversified businesses. However, the agency stressed that expanding the capacity of the National Company Law Tribunal and the National Company Law Appellate Tribunal will be critical to ensuring that the proposed reforms translate into faster and more effective insolvency resolutions. Manushree Saggar, Senior Vice President at ICRA, said the recommendations of the Standing Committee on Law and Business, if implemented, are expected to improve recovery rates and shorten CIRP timelines under the IBC, but added that tribunal delays continue to be the key constraint.

Infrastructure Urban

02 Jun 2026

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Infrastructure Urban

02 Jun 2026

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Infrastructure Transport

02 Jun 2026

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..