Centre Accepts Most IBC Reforms, Opposes Retrospective Clause

The Indian government has accepted most of the recommendations from a committee on changes to the bankruptcy law, called the IBC.

These changes aim to make the process faster and fairer for everyone involved.

One big change is giving new investors a 'clean slate,' meaning they won't be responsible for the old company's debts.

However, the government doesn't agree with making this rule apply to cases from before 2016, because it could cause unexpected problems.

The government has approved other changes, like giving more power to the bankruptcy regulator and lowering the voting threshold for certain insolvency processes.

The bill also includes new frameworks for handling bankruptcy cases involving multiple companies or companies in different countries.