Government To Amend Insolvency Law To Reduce Time Taken For Resolution Process

Amendments to the Insolvency and Bankruptcy Code are likely to be introduced in the Budget session of Parliament early next year.

The government is preparing to amend the insolvency law as it looks to reduce the time taken for completion of resolution process of stressed assets and prevent significant erosion of value of the assets, according to a senior official.

Amendments to the Insolvency and Bankruptcy Code (IBC), which came into force in 2016 for timely resolution of stressed assets, are likely to be introduced in the Budget session of Parliament early next year.

The corporate affairs ministry's move to amend the law also comes against the backdrop of concerns in various quarters that many of the corporate insolvency resolution processes are taking a longer time due to litigations and other issues despite a stipulated time frame in place.

The senior government official told PTI that consultations are going on with various stakeholders, including bankers and lawyers, and the changes are expected to be finalised in the coming weeks.