New Delhi, Nov. 24 -- While creditors handhold bankruptcy resolution and recover debt from rescue packages, dubious pre-bankruptcy deals are building up a mountain of claims in the background.

Creditors' claims on shady transactions done right before bankruptcy admission are approaching Rs.4 trillion, data from the insolvency regulator showed, matching what they have so far realized through bankruptcy courts in the last 10 years.

Banks are trying to reverse Rs.3.97 trillion worth of questionable transactions executed by former promoters and executives before companies formally entered bankruptcy proceedings, latest data from the Insolvency and Bankruptcy Board of India (IBBI) showed. The amount compares with the Rs.3.99 trillion that cr...