The Lok Sabha has taken up the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, for consideration and passage. Union Finance Minister Nirmala Sitharaman introduced the Bill, which aims to further amend the Insolvency and Bankruptcy Code of 2016. The Bill seeks to address procedural delays and interpretive issues faced by companies and individuals.
Participating in the discussion, BJP MP Anurag Thakur stated that the Indian economy has undergone a significant transformation in the past eleven years under the Modi government. He said that after the implementation of the Insolvency and Bankruptcy Code, creditors have been empowered with a legal framework, regulatory support, judicial backing, and a robust banking system. Mr. Thakur stated that around 8,654 corporate debtor cases have been resolved through the Corporate Insolvency Resolution Process (CIRP). He said that approximately 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, as the relief provided under it is not equal for small traders, farmers, and large corporations.
Rahul Kaswan of the Congress said that when the IBC was implemented in 2016, it was hailed as a game-changer for the Indian economy. He said that the system was previously efficient, but it has now become uncertain. He also raised concerns about the rising Non-Performing Assets during the NDA government. He alleged that the government waived the loans of large corporations, but not for farmers.
Trinamool Congress leader Saugata Ray said that the Insolvency and Bankruptcy Code (IBC) has 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 about the effectiveness of the Code, saying that it is no longer functioning as it did in its initial years. The discussion is ongoing.
