**Executive Summary**
This document is the response to Unstarred Question No. 1335 in Lok Sabha, concerning Insolvency and Bankruptcy Cases. The question was answered on December 8, 2025, by the Minister of State in the Ministry of Corporate Affairs, Shri Harsh Malhotra. The question addresses data on insolvency cases, recoveries made, coordination procedures, and measures to strengthen inter-agency mechanisms under the Insolvency and Bankruptcy Code, 2016.
**Key Points / Main Content**
* **IBC and Central Agencies:** The Insolvency and Bankruptcy Code (IBC) and central investigation agencies operate in distinct functional domains.
* **IBC Objective:** The main objective of the IBC is the resolution of a stressed company.
* **IBBI Information Sharing:** The Insolvency and Bankruptcy Board of India (IBBI) regularly shares details of avoidance transactions reported by RPs with concerned agencies.
* **Resolution Professional (RP) Duties and Powers:**
* Under the IBC, the RP is required to take control and custody of all assets of the corporate debtor (tangible and intangible property, movable and immovable assets, receivables, financial assets, and business records), located within or outside India, as provided under Sections 18 and 25 of IBC.
* RPs are expected to work with any authority with custody, control, or information relating to assets, including enforcement agencies.
* RP must exercise powers and perform duties in compliance with the requirements of law, including cooperation with enforcement agencies and financial institutions.
**Impact Analysis**
**Resolution Professionals (RPs)**
* **Impact:** RPs are required to take control and custody of all assets of corporate debtors. They are expected to collaborate with authorities and comply with legal requirements.
* **Action Required:** RPs must exercise powers and perform duties in compliance with the law, cooperate with relevant authorities, and report details of avoidance transactions to IBBI.
**Enforcement Agencies and Financial Institutions**
* **Impact:** Enforcement agencies and financial institutions are expected to cooperate with RPs.
* **Action Required:** Enforcement agencies and financial institutions should provide assistance and information to the RP in relation to assets of corporate debtors.
**The Insolvency and Bankruptcy Board of India (IBBI)**
* **Impact:** Must share details of avoidance transactions reported by RPs.
* **Action Required:** Regularly share details of avoidance transactions reported by RPs under the IBC with the concerned agencies for suitable action under their respective Acts.
Key Entities Referenced
Insolvency and Bankruptcy Code (IBC): The primary legislation concerning insolvency and bankruptcy resolution in India.
Ministry of Corporate Affairs: The primary ministry responsible for administering the Insolvency and Bankruptcy Code.
Resolution Professional (RP): Person required to take control and custody of the assets of the corporate debtor under the IBC
Insolvency and Bankruptcy Board of India (IBBI): Regulatory body that oversees insolvency proceedings and the administration of the IBC.
CBI, ED, SFIO: Central investigation agencies involved in insolvency and bankruptcy cases.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 1335
ANSWERED ON MONDAY THE 8TH DECEMBER, 2025/ AGRAHAYANA 17, 1947 (SAKA)
INSOLVENCY AND BANKRUPTCY CASES
QUESTION
1335. DR. AMAR SINGH:
Will the Minister of CORPORATE AFFAIRS be pleased to state:
(a) whether the Government has data on the number of high-value insolvency and
bankruptcy cases initiated since 2016 involving corporate debtors or promoters under
investigation by central agencies such as the CBI, ED or SFIO;
(b) if so, the details of recoveries made by creditors in such cases, including those related
to large-scale financial defaults or fugitive economic offenders;
(c) whether the Government follows a procedure for coordination between insolvency
professionals, enforcement agencies, and financial institutions to secure assets located
in India and abroad, if so, the details thereof; and
(d) the measures taken by the Government to strengthen inter-agency mechanisms for
tracing and recovering procedure of crime in cases under the Insolvency and Bankruptcy
Code, 2016?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS AND MINISTER OF
STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS
[SHRI HARSH MALHOTRA]
(a) & (b): The Insolvency and Bankruptcy Code (IBC) and central investigation agencies
operate in distinct functional domains. The main objective of the IBC is resolution of a
stressed company. However, The Insolvency and Bankruptcy Board of India (IBBI)
regularly shares details of avoidance transactions (preferential, undervalued, fraudulent
and extortionate transactions) reported by RPs under the IBC with the concerned
agencies for suitable action under their respective Acts.
(c) & (d): Under the IBC, the Resolution Professional (RP) is required to take control
and custody of all assets of the corporate debtor, including tangible and intangible
property, movable and immovable assets, receivables, financial assets and business
records, located within or outside India, as provided under Sections 18 and 25 of IBC.
Therefore, RPs are expected to work with any authority that has custody, control, or
information relating to such assets, including enforcement agencies. Further, as per the
Code and Regulations made thereunder the RP must exercise powers and perform duties
in compliance with the requirements of law, which includes cooperating with enforcement
agencies and financial institutions.
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