Insolvencies take 58 percent longer, IBC admissions up 2.5x compared to 2020

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The completion of an insolvency resolution process takes 57.5 percent more time than it did five years ago, according to a Moneycontrol analysis of data released by Insolvency and Bankruptcy Board of India.

While it took 445 days to complete a resolution process under IBC in December 2020, the time taken has increased to 587 days in 2022, and 671 days in 2023. By the end of 2024, it took 701 days to complete the resolution process, more than twice the time allowed by the law, which mandates insolvency proceedings to be completed in 330 days.

The liquidation time too has increased by over 50 percent compared to 2020, data showed. By December 2024, liquidation took 508 days compared to 328 days taken to complete the resolution five years ago.

The delay is not only restricted to time taken for insolvency, even recoveries have come down over this period.