Parliament Session: IBC Amendment Bill 2025 passed in Lok Sabha, Finance Minister said – this will increase the confidence of investors

New Delhi. The Insolvency and Bankruptcy Code (Amendment) Bill 2025 was passed by voice vote in the Lok Sabha on Monday. Responding to the discussion on the bill, Finance Minister Nirmala Sitharaman said that this bill has been brought with the main objective of speeding up the process of resolution of distressed companies. He said that after this bill becomes law, bankruptcy cases of companies can be resolved outside the court. This will increase the confidence of investors.

He said that this bill was brought in the Lok Sabha in August 2025, and it was sent to the select committee. After deep and serious consideration, the Select Committee has suggested 11 amendments and all have been included in it. In this, more rights have been given to the creditor. Creditors will be able to exercise their rights in the resolution process. This will bring more transparency in the entire process and the resolution process will be faster.

Sitharaman said that provisions have been made in this bill that after the appeal in NCLAT, its decision should be given within three months. He said that in this amendment bill, adequate measures have been taken to avoid delay in resolution of sick companies. In this, full care has been taken of the interests of the employees. Whatever liability they have will be kept on priority. ‘We will not compromise at all with the interests of the employees.’ Micro, small and medium enterprises have also been fully taken care of in the bill.

Sitharaman said that since the introduction of the Insolvency and Bankruptcy Code in 2016, distressed companies that have gone through the resolution process are performing better. The percentage of banks withdrawing bad money from sick companies has increased significantly and now it has reached 52 percent. Smt. Sitharaman said that in the case of bank fraud, the Enforcement Directorate (ED) investigated 1105 cases, in which assets worth Rs 64920 crore were seized and 150 accused were arrested.

Strict action has been taken against fugitive economic offenders and action is underway against perpetrators of such cases. He said that provision has also been made to solve environmental problems. He said that a lot of security measures have been taken in the case of creditors in the judicial authority. Now creditor or debtor cannot be misused in any way. He said that there is no discrimination against any company or sector and everyone is dealt with in the same way. After Smt. Sitharaman’s reply, the bill was passed by voice vote.