The Lok Sabha passed the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, on Monday, March 30, during the Parliament's budget session.
The government introduced the bill in the Lok Sabha on August 12, 2025, to amend the Insolvency and Bankruptcy Code (IBC), proposing several changes, including measures to reduce the time taken for admission of insolvency resolution applications. The bill was referred to a select committee of the Lok Sabha, and its report was submitted in December 2025.
In a post on the social media platform X, Finance Minister Nirmala Sitharaman's Office noted, "The Bill was referred to a Select Committee of the Lok Sabha under the chairpersonship of Shri Baijayant Panda. The report of the Select Committee made 11 major recommendations, all of which have been accepted by the Government. In addition to the 11 recommendations, we've brought in one other, under which the Committee of Creditors shall record the reasons for selection of the Successful Resolution Applicant, which will improve transparency."
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While addressing the Lok Sabha, Sitharaman was quoted by PTI as saying that IBC has been a very crucial factor to improve the health of the country's banking sector, including the recovery of non-performing assets.
She also noted that companies are performing well and their corporate governance practices have also improved after coming out of the insolvency resolution process.
(This is a developing story.)
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