Parliament Passes IBC Amendment Bill 2026

Parliament passed the Insolvency and Bankruptcy Code (Amendment) Bill, 2026, on April 1, 2026, when the Rajya Sabha approved it by voice vote following its clearance in the Lok Sabha two days earlier. The legislation aims to streamline insolvency resolutions, reduce procedural delays and enhance the recovery of distressed assets in India's financial system.

Union Finance Minister Nirmala Sitharaman, replying to a brief debate in the Rajya Sabha, emphasized that the Insolvency and Bankruptcy Code, originally enacted in 2016, has significantly bolstered the banking sector's health. She noted that the code has facilitated the resolution of viable businesses rather than their liquidation, with recoveries totaling 1.04 lakh crore rupees through various channels, including 54,528 crore rupees from insolvency proceedings, which accounted for 52.3 percent of the total. "The IBC was not brought with the intention of liquidating companies. It was brought in to address the stress that the companies are facing and give a resolution which will make them come back," Sitharaman said.

The bill incorporates 11 recommendations from a Lok Sabha Select Committee, chaired by BJP MP Baijayant Panda,...