The Parliamentary Standing Committee on Finance has summoned RBI Governor Sanjay Malhotra to appear on July 10 to provide insights into the Insolvency and Bankruptcy Code (IBC) and address challenges surrounding its implementation.
The panel is reviewing the effectiveness and shortcomings of the IBC, which was enacted in 2016 to streamline corporate debt resolution and reduce NPAs (non-performing assets).
The review gains significance as the government is reportedly considering amendments to the law based on emerging issues and stakeholder feedback.
The committee’s findings could influence future policy changes in India’s insolvency framework.
May 28–29: The first two meetings were held. During these sessions:
The panel highlighted ambiguities in the IBC.
The Supreme Court’s decision to strike down JSW Steel’s resolution plan for Bhushan Power and Steel Ltd (BPSL) was discussed.
Presentations were made by:
Ministry of Corporate Affairs
Insolvency and Bankruptcy Board of India (IBBI)
Representatives from Union Bank of India, PNB, and Canara Bank
