Rajya Sabha clears changes to Insolvency Code
The Upper House offers relief for home buyers
New Delhi: The Rajya Sabha on Monday passed an amended version of the three-year-old Insolvency and Bankruptcy Code (IBC). The amendments seek to end ambiguity and streamline the resolution process further. It also gives home buyers the status of a creditor giving them a say in the resolution in case a housing project goes bust.
Replying to the debate on the Insolvency and Bankruptcy Code (Amendment) Bill, 2019, Finance Minister Nirmala Sitharaman said the changes were in response to events that eroded the legislative intent of the IBC.
“The Bill seeks to amend seven sections of the Insolvency and Bankruptcy Code. They are largely to remove ambiguities and to facilitate a smooth conduct of the corporate and insolvency resolution process for maximising the outcomes in line with preamble of the code,” Ms Sitharaman said.
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