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Insolvency and Bankruptcy Code (Amendment) Bill, 2026

  • 02 Apr 2026

On 1st April 2026, Parliament passed the Insolvency and Bankruptcy Code (Amendment) Bill, 2026, with the Rajya Sabha approving it, aimed at strengthening India’s insolvency resolution framework and addressing procedural challenges.

Key Points

  • Objective of Amendments:
    • Address delays and interpretational issues.
    • Strengthen insolvency resolution framework.
    • Align with global best practices.
  • Key Provisions:
    • 12 amendments (11 by Select Committee + 1 by government).
    • Expansion of look-back period for avoidance transactions to 2 years.
    • Mandatory recording of reasons by Committee of Creditors (CoC).
  • IBC Performance:
    • 1,376 companies resolved.
    • ₹4.11 lakh crore recovered by creditors.
    • Financial creditors recovered over 64% of claims.
  • Impact on Banking Sector:
    • Total recovery from NPAs: ₹1.04 lakh crore.
    • IBC contribution: ₹54,528 crore.
    • Gross NPAs reduced significantly since 2016.
  • Enforcement Measures:
    • Action under Fugitive Economic Offenders Act and Prevention of Money Laundering Act.
    • ₹65,000 crore worth assets attached.
    • ₹15,186 crore confiscated and largely returned to banks.