Realty bankruptcy reform to debut in later IBC overhaul

The IBC (Amendments) Bill, 2025—currently under review by a Lok Sabha select committee headed by BJP MP Baijayant Panda—proposes a creditor-led, largely out-of-court insolvency process for quicker corporate turnaround, faster tribunal admissions, a new framework for group and cross-border bankruptcies, and separate provisions to resolve implementation disputes.

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Bill also proposed tighter definition of secured debt.

(MINT)

The Bill also proposed tighter definition of secured debt to exclude statutory dues that are not backed by an agreement and are created by mere operation of law.

Considerable deliberations have already taken place within government on the proposed changes, and the Bill will not be held back to include real estate measures, the officials said.

“Chances of the revised IBC (Amendments) Bill making it to either this or the budget session are fifty-fifty,” one of the two officials said.