The Union Cabinet has granted approval for amendments to the Insolvency and Bankruptcy Code, paving the way for the introduction of the IBC Amendment Bill in the current parliamentary session. These amendments are based on recommendations from a Select Parliamentary Committee led by Bharatiya Janata Party MP Baijayant Panda.
The committee, assigned to review the existing bankruptcy framework, submitted a detailed report in December 2025, emphasizing the need to expedite the corporate resolution process. To address delays in the system, the committee has proposed stricter timelines for resolving bankruptcy cases and suggested empowering the Committee of Creditors (CoC) with enhanced authority for quicker resolutions.
Furthermore, the proposed amendments aim to fill gaps in the current code by introducing two key structural frameworks. Firstly, a dedicated mechanism for cross-border insolvency is recommended to manage distressed companies with international assets and foreign creditors effectively. Secondly, a group insolvency framework is proposed to enable interconnected corporate conglomerates to undergo resolution as a unified entity rather than through separate proceedings.
These amendments fall under the Ministry of Corporate Affairs’ jurisdiction, responsible for overseeing the implementation of both laws. Last year, the ministry introduced a Bill in the Lok Sabha with various IBC changes, including measures to expedite insolvency resolution application admissions. Finance and Corporate Affairs Minister Nirmala Sitharaman has indicated the government’s intention to introduce the IBC (Amendment) Bill, 2025, during the second half of the Budget session that commenced recently.
