Parliament's Fierce Debate: IBC Law Sparks Controversy
In the Lok Sabha, intense debate arose over the Insolvency and Bankruptcy Code (IBC), with opposition members criticizing its inefficacy due to tribunal limitations, while BJP members defended it as a crucial reform. Key concerns included delayed resolutions and asset stripping, with amendments aimed at enhancing efficacy.
- Country:
- India
The Insolvency and Bankruptcy Code (IBC) was the center of a fervent debate in the Lok Sabha, as opposition members criticized it for failing to deliver timely resolutions due to the overburdened capacity of tribunals. The BJP defended the 2016 legislation, accusing the opposition of adhering to outdated 'license raj' mindsets.
During discussions on the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, opposition members argued that the code has become a tool for asset stripping. In response, BJP MP Yaduveer Wadiyar praised the government's economic policies, emphasizing the IBC as a key component in the Modi administration's progressive reforms.
Junior Law Minister Anurag Thakur highlighted the IBC's success in recovering over Rs 4 lakh crore, while critics like TMC's Saugata Roy pointed to the National Company Law Tribunal's limited capacity as a significant obstacle. The discussion concluded with the government expected to address the criticisms soon.
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