IBC: Cabinet Approves Ordinance To Change Bankruptcy Rules

The Narendra Modi government today moved to amend the Insolvency and Bankruptcy Code via the ordinance route.

The Union Cabinet has approved an ordinance that incorporates changes to the bankruptcy law, Law Minister Ravi Shankar Prasad told reporters at a press briefing. Prasad declined to share details on the changes as the President’s approval is still awaited.

A 14-member Insolvency Law Committee had earlier made suggestions to the Ministry of Corporate Affairs including addressing the situation of home buyers, expanding the pool of potential bidders, making recoveries easier for lenders, and expediting the decision-making process by creditors.