IBC reforms aim to cut delays, aid faster settlement

The government on Tuesday introduced sweeping amendments to the Insolvency and Bankruptcy Code, describing itas a “bigger reform” that will expedite corporate insolvency cases, even as parliament completed the legislative process for the new simplified income-tax regime.

- HT Correspondent

Union finance minister Nirmala Sitharaman told the Rajya Sabha that the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, introduced in the Lok Sabha earlier in the day amid din, represents the “next generation of IBC” reforms.

She told the Upper House that the IBCamendment bill has also been referred to a Select Committee.

According to officials who did not wish to be named, the amendments will incorporate new concepts including creditor-initiated insolvency resolution process (CIIRP), domestic group insolvency provisions, and cross-border insolvency mechanisms.

These amendments aim to facilitate faster admission, resolution, and liquidation processes, maximise asset value, and improve governance, the officials said.