Defaulting promoters of companies have coughed up nearly Rs 1.1 lakh crore to keep the fear of insolvency at bay, The Times of India reported.

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The report, quoting sources, said total number of cases filed under the Insolvency and Bankruptcy Code (IBC) are nearly 4000 but only 977 have been admitted by National Company Law Tribunal (NCLT) as the rest were withdrawn before they were admitted after promoters agreed to settle.

The report said, "Last week, the government had said public sector banks were aiming to recover around Rs 1.8 lakh crore from loan defaulters this fiscal year, which is around two-and-a-half times the amount recovered in 2017-18."

However, it must also be noted that in over 40 percent cases, the insolvency process has missed its 180-day deadline.

It said, "While the law allows another 90-day extension, in over a quarter of the ongoing 716 cases the process has not been completed within the stipulated period."