Union Cabinet's Green Signal to Amend Insolvency Laws

The Union Cabinet approved amendments to the Insolvency and Bankruptcy Code and the Companies Act. These changes aim to streamline insolvency resolutions. A bill introduced last year is pending a committee review. The government plans further amendments during the budget session.

The Union Cabinet has greenlit amendments to the Insolvency and Bankruptcy Code (IBC) and the Companies Act, signaling a major overhaul of the insolvency landscape. These progressive changes, though details remain under wraps, are expected to reinforce the efficiency of insolvency resolutions.

Sources convey that the recently approved amendments will bring significant shifts to the existing framework implemented by the corporate affairs ministry. Last August, a proposed amendment bill was introduced in the Lok Sabha, targeting a faster admission process for insolvency resolution applications.

The bill, having undergone scrutiny by a select Lok Sabha committee, will see its report submitted in December 2025. Meanwhile, Finance Minister Nirmala Sitharaman has affirmed that the government aims to present the IBC (Amendment) Bill during the latter part of the ongoing Budget session.

(With inputs from agencies.)