HYDERABAD: As many as 63 companies from Telangana have declared insolvency during the course of the Covid-19 pandemic.
The cases have been filed with the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code and are in the process of adjudication.
However, at the same time, 803 new companies have also been registered in Telangana in June alone. Experts said that while the pandemic affected medium and small-scale industries, it did not deter new companies.
In reply to a query by Telangana Congress president and Malkajgiri MP A Revanth Reddy in Lok Sabha, Union minister of state for corporate affairs Rao Inderjit Singh informed that initiation of corporate insolvency resolution process Insolvency and Bankruptcy Code, 2016 was suspended by Insolvency and Bankruptcy Code (Second Amendment) Act, 2020 for defaults arising on or after March 25, 2020 till March 24, 2021.
“The defaults arising during the said suspension will remain non est for the purpose of initiation of corporate insolvency resolution process under the Code. Around 63 companies having registered office in State of Telangana were admitted into CIRP from Jan, 2020 to June 2021,” Rao Inderjit Singh state in his reply.
According to the Registrar of Companies (RoC) data, as many as 77,476 companies are currently active in Telangana while 2,006 companies are under strike off and 264 are under liquidation.
Overall in the country, around 212 applications pertaining to real estate sector were admitted for Corporate Insolvency Resolution Process (CIRP) under the Code. Of these, eight cases have been resolved, 65 cases have been settled or withdrawn, and 23 cases were ordered for liquidation and for the rest, process is ongoing.
According to RoC data, as many as 77,476 companies are currently active in Telangana while 2,006 companies are under strike off and 264 under liquidation.
