Modi cabinet clears 7 amendments to Insolvency and Bankruptcy Code

The amendments are aimed at filling gaps in the corporate insolvency resolution framework and maximising value from the resolution process.

File photo of PM Narendra Modi at a meeting with his cabinet in New Delhi | PTI

New Delhi: In a significant move, the government Wednesday cleared seven amendments to the insolvency law.

The amendments to the Insolvency and Bankruptcy Code (IBC) are aimed at filling critical gap in the corporate insolvency resolution framework while at the same maximising value from the resolution process.

The Cabinet has approved the changes to the Code.

The amendments would “enable the government to ensure maximisation of value of a corporate debtor as a going concern while simultaneously adhering to strict timelines,” an official release said.