Lok Sabha takes up Insolvency and Bankruptcy Code Bill, 2025, for consideration and passing

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 that when the IBC was implemented in 2016, it was termed 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. The discussion is underway.