Archive · 22 May 2025
Experts Doubt IBC Amendment Will Expedite Approvals
The government is planning to change when companies get approval for mergers and acquisitions during bankruptcy proceedings.
Currently, the CCI approves these plans before creditors.
The new plan is for CCI approval after creditors agree.
Experts are divided: some think this won't speed things up, while others see benefits like flexibility and reduced costs.
The real solution might be quicker CCI approvals or a faster process for smaller cases.
This is because the final approval still won't happen until all required clearances are in place.
The government proposes amending the IBC to allow CCI approval after CoC approval.
The change aims to reduce delays and ease CCI's workload.
Experts suggest the amendment may offer some flexibility and cost relief.
Legal experts believe timelines might not improve significantly.
Faster CCI timelines and a fast-track route for smaller cases are suggested.
- Who
- The government and regulatory experts.
- What
- Proposed amendment to the IBC regarding CCI approval for resolution plans.
- When
- May 22, 2025
- Where
- India
- Why
- To reduce delays and ease the workload in the IBC process.
Skeptical of Impact
Potential Benefits
Impact on Timelines
Skeptical of Impact
The proposed change may not resolve timeline issues; stricter timelines are needed.
Potential Benefits
Deferring CCI approval provides flexibility and cost savings for resolution applicants.
- IBC Law Enactment
- 2016
- CIRP Deadline
- 270 days (with possible extensions to 330 days)
- CCI Approval Requirement
- Currently required before CoC approval
- Proposed Amendment
- Allow CCI approval after CoC approval
