National E-Governance Services Ltd. (NeSL)

Subject – Economy

Context – NeSL data as of May 31 shows that the number of debtors in India stood at 93.02 lakh.

Concept –

According to the evidence provided by the Ministry of Corporate Affairs to the Parliamentary Standing Committee on Finance in August, NeSL data as of May 31 shows that the number of debtors in India stood at 93.02 lakh. The amount of underlying debt is Rs 136 lakh crore.
Not all creditors report debts and defaults to NeSL as it is not mandatory to file default certificates issued by it with the NCLT while filing petitions to commence corporate insolvency resolution process (CIRP).

About NeSL–

NeSL is India’s first Information Utility and is registered with the Insolvency and Bankruptcy Board of India (IBBI) under the aegis of the Insolvency and Bankruptcy Code, 2016 (IBC).
The company has been set up by leading banks and public institutions.
The primary role of NeSL is to serve as a repository of legal evidence holding the information pertaining to any debt/claim, as submitted by the financial or operational creditor and verified and authenticated by the parties to the debt.
NeSL works towards
- Time-bound resolution by providing verified information to creditors and to Adjudicating Authorities that do not require further authentication.
- Default intimation to Creditors linked to a debtor when any creditor files a default against a debtor
- Mitigation of information asymmetry between parties to a debt
- Superior credit monitoring by creditors
- An agreed statement of outstanding balance between parties to a debt
- Facilitate all stakeholders of the IBC ecosystem by leveraging Information Technology to achieve objective of code.