Lok Sabha Approves the Insolvency and Bankruptcy Code (Amendment) Bill, 2025 During Budget Session

Finance Minister Nirmala Sitharaman announced that a total of 12 amendments are being proposed to the Insolvency and Bankruptcy Code (IBC). These amendments aim to enhance the effectiveness of the insolvency resolution framework in India, addressing various challenges faced by stakeholders in the process.

The Rajya Sabha, the upper house of Indias Parliament, has been adjourned until 2 p.m. today, indicating ongoing discussions or considerations related to the proposed amendments among lawmakers.

The IBC, enacted in 2016, serves as a comprehensive framework for the resolution of insolvencies in India, allowing creditors to recover dues while providing a fair chance for businesses to restart. The proposed amendments will likely focus on improving the timeliness of the resolution process, enhancing the role of the Insolvency Professionals, and possibly introducing measures to safeguard the interests of small creditors.

Further discussions in the Rajya Sabha may shed light on the specific details and implications of these proposed changes, as the government continues its efforts to strengthen the insolvency regime in the country.