The Parliament has passed the Insolvency and Bankruptcy Code (Amendment) Bill, 2026, with the Rajya Sabha approving it by voice vote. The Bill seeks to further amend the Insolvency and Bankruptcy Code, 2016, and address procedural delays, interpretational issues, and transparency concerns in insolvency resolution. It comes amid continued debate on the effectiveness of the insolvency framework in rescuing viable businesses, preserving enterprise value, and improving recovery from stressed assets.
Key Changes in the Amendment
The Bill carries 12 amendments in total. Of these, 11 were recommended by the Select Committee and one was introduced by the government. A major change expands the look-back period for avoidance transactions to two years before the insolvency petition is filed before the adjudicating authority. This is intended to strengthen scrutiny of suspicious transactions before insolvency proceedings.
Transparency and Resolution Process
A new transparency provision requires the Committee of Creditors to record reasons for selecting the successful resolution applicant. This measure was accepted in full after committee recommendations. It is aimed at reducing doubts among stakeholders and making the resolution process more accountable and transparent.
IBC Performance and Recovery Data
The government said the IBC has played a major role in improving the health of the banking sector. Official figures cited in the House showed resolution of 1,376 companies and creditor recovery of Rs 4.11 lakh crore. Financial creditors have reportedly recovered over 64% of their claims through the process. Commercial banks have recovered over Rs 1.04 lakh crore from NPAs, with the IBC contributing more than Rs 54,528 crore.
Economic Offences and Bank Fraud Action
The discussion also brought into light enforcement action under the Fugitive Economic Offenders Act and the Prevention of Money Laundering Act. The Enforcement Directorate has investigated over 1,000 bank fraud cases under PMLA, attached proceeds of crime worth nearly Rs 65,000 crore, arrested 150 accused, and filed 277 prosecution complaints. Assets worth Rs 15,186 crore have been confiscated, of which over Rs 15,183 crore has been restituted to public sector banks.
Last Modified: April 28, 2026