Govt to introduce Insolvency and Bankruptcy Code amendment Bill in 2nd half of Budget session starting March 9: Sitharaman

The Central government is set to introduce the Insolvency and Bankruptcy Code amendment Bill during the second half of the Budget session starting March 9, news agency PTI quoted Finance Minister Nirmala Sitharaman as saying.The parliamentary committee has submitted its report as far as proposed legislation with respect to Insolvency and Bankruptcy Code (IBC) is concerned, she said during an interaction with the media a day after presenting Budget 2026-27 in the Lok Sabha.

The Amendment Bill was first introduced in the last session of Lok Sabha on August 12, 2025 and was thereafter referred to a select committee of the Lok Sabha (“Select Committee”).
“I expect, subject to conditions, to table the Insolvency and Bankruptcy Code (Amendment) Bill in the second half of Budget session starting March 9 incorporating suggestion of the committee,” the Finance Minister, who also holds the Corporate Affairs Ministry portfolio, said.

Under the last Budget, Sitharaman proposed that an Integrated Technology Platform will be set up for improving the outcomes under the Insolvency and Bankruptcy Code (IBC), thereby ensuring the consistency, transparency, timely processing and better oversight for all stakeholders.

She highlighted that IBC had already resolved more than 1,000 companies, resulting in direct recovery of over`3.3 lakh crore to creditors. She further proposed that appropriate changes to the IBC, reforms and strengthening of the tribunal and appellate tribunals will be initiated to speed up the insolvency resolution.
Financial Services Secretary M Nagaraju earlier said that the IBC has been a game-changer and has transformed the insolvency landscape by fostering transparency, accountability and efficiency in corporate dispute resolution and laying the foundation of a more resilient and robust economy.Sitharaman also stated that the strategic disinvestment of IDBI Bank is on track, and the pace of PSU stake sale will set the direction of non-tax revenues, as quoted by PTI.

“Despite these achievements, several challenges still remain, which include timelines of resolutions and liquidations, resulting in value deterioration, low realisations to creditors and capacity constraints at National Company Law Tribunal (NCLT),” he said at an event organised by IBBI and Insol India.

Also read: IBC has been a game-changer, transformed the insolvency landscape: DFS secretary

What is the IBC Amendment Bill 2025?

The IBC Amendment Bill 2025 is the seventh amendment recommended by the select committee. The Bill seeks to address some of these key challenges relating to delays in resolution and liquidation and low recovery rates, Nagaraju said.

The Act undergone six legislative interventions since its enactment and the last amendment was in 2021. The Bill, which was referred to a select committee of the Lok Sabha, has also submitted its report in December 2025.

“The bill also proposes, inter alia, introduction of provisions on group insolvency process, cross-border insolvency and the creditor-initiated insolvency processes to strengthen and expand the framework of IBC,” he added.

The Secretary further said that the amendment bill is expected to enhance the timelines and effectiveness of insolvency proceedings, improve greater confidence and align India’s resolving regime more closely with the global best practices, thereby fostering greater stability and resilience in the financial system.