Govt approves 7 amendments to insolvency law

Bombay high court Justice Sarang Kotwal rejected the bail pleas filed by the three activists Sudha Bharadwaj, Arun Ferriera and Vernon Gonsalves. Representative purpose only. Photo: iStock

In a significant move, the government on Wednesday (July 17) 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.