Rajya Sabha clears Insolvency and Bankruptcy Code Amendments

Replying to a debate on a Bill to amend the Insolvency and Bankruptcy Code (Amendment) Bill (IBC), 2026, Union Finance Minister Nirmala Sitharaman said the law helped in strengthening the banking system and the in bringing value in the economy.

She said the law also aided the companies to come back rather than getting liquidated and the new set of amendments will improve investor confidence. The Rajya Sabha passed the Bill after a brief debate.

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She said the Government accepted 11 recommendations of the Select Committee headed by BJP MP Baijayant Panda and one amendment was brought by the Government. The Lok Sabha had passed the Bill on March 30.

“In 2017-18, for every one company resolved, five companies went into liquidation. However, in 2024-25, this ratio has now substantially improved and has come close to one,” the Minister said, adding that the Scheduled Commercial Banks (SCBs) have recovered a total of ₹1,04,099 crore through various channels, and out of the total amount, the IBC channel alone contributed a significant ₹54,528 crore, accounting for 52.3% of the total recoveries.

“The new business does not get encumbered or disturbed from settling and growing,” she said explaining the provisions of the new Bill and added that the amendmens will ensure transparency in the process. She said steps are being taken against initiating frivolous proceedings.