Last Updated on March 26, 2026 1:34 am by BIZNAMA NEWS
AMN
Lok Sabha has taken up the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, for consideration and passing. Union Finance Minister Nirmala Sitharaman moved the Bill, which aims to further amend the Insolvency and Bankruptcy Code 2016. The Bill seeks to address procedural delays and interpretational issues among companies and individuals.
Participating in the discussion, BJP MP Anurag Thakur said the Indian economy has witnessed a landmark transformation in the past eleven years under the Modi government. He said that, after the implementation of the Insolvency and Bankruptcy Code, creditors are empowered with the implementation of a legal framework, regulatory support, judicial backing, and a strong banking system. Mr Thakur said that around eight thousand 654 corporate debtors’ cases have been resolved through the Corporate Insolvency Resolution Process (CIRP). He said that four lakh crore rupees have been recovered since the implementation of the Insolvency and Bankruptcy Code. Samajwadi Party MP Virendra Singh alleged that the provisions of the bill are discriminatory in nature as the relief provided under it is not equal for small traders, farmers, and large corporations.
Rahul Kaswan of Congress said, when IBC was implemented in 2016, it was termed as the game-changer for the Indian economy. He said that earlier the system was fast, but now it has become uncertain. He also raised the question over the rising Non-Performing Assets during the NDA government. He alleged that the government waived off the loans of big corporations, but it was not done in the case of farmers. Trinamool Congress leader Saugata Ray said that the Insolvency and Bankruptcy Code (IBC) delivered remarkable outcomes, particularly in resolving debtor cases and improving credit discipline. He said that the country’s global ranking in resolving insolvency improved significantly from 136 to 52 within the first three years of the IBC’s implementation. However, he raised questions over the effectiveness of Code, saying that it is no longer functioning as it did in its initial years. Daggumalla Prasada Rao of TDP said, the government has carefully studied the challenges in the existing code and acted decisively to correct them. He said the IBC was a landmark reform aimed at time-bound resolution and value maximisation. Dr. Kalanidhi Veeraswamy of DMK said that the government brought IBC in 2016 and had stated that the insolvency process would become much more transparent. He alleged that only a few select companies benefited from the implementation of IBC and NCLT. Dileshwar Kamait of JDU said companies have to face various complex norms for insolvency; hence, the government has brought this new amendment with the intention of promoting ease of doing business to make the legislation more transparent and clear. Sanjay Uttamrao Deshmukh of Shiv Sena (UBT) alleged that Non-Performing Assets of Public Sector Banks worth 18 to 19 lakh crore rupees have been written off. Abhya Kumar Sinha of RJD said that the objective of the IBC was to resolve the insolvency process in a time-bound manner, but in reality, the matters are pending for 300 to 400 days.
Bhaskar Murlidhar Bhagre of NCP (SP), Shrirang Appe Barne of Shiv Sena, Bhajan Lal Jatav of Congress, Anup Sanjay Dhotre of BJP, Naresh Chandra Uttam Patel of Samajwadi Party, Gurmeet Singh Meet Hayer of Aam Aadmi Party, Chandan Chauhan of RLD, and others also participated in the debate. The discussion remained inconclusive. Later, the House was adjourned for the day to meet again on the 27th of March.
