The IBC is a law that supports companies and individuals who can’t pay their debts. It offers a clear way to either reorganize their finances or sell their assets in an orderly manner. The goal is to solve these financial problems quickly, usually within 180 to 270 days, to keep the value of the assets and treat creditors (people or businesses owed money) fairly. The IBC is especially helpful for complicated cases, like those in real estate, where many people, such as homebuyers, are involved. Since 2016, the IBC has been amended multiple times to improve how it works. These changes have been made to fix problems, make the process faster, and include more people in decision-making, especially in industries like real estate, which often face delays and complications. The updates in 2024 and 2025 are particularly important because they focus on making the process smoother and protecting the rights of stakeholders, such as homebuyers. Let’s look at the key changes in IBC Code in detail.
Unlock new career opportunities with The Legal School’s Certification in Bankruptcy & Insolvency Law: Corporate Restructuring & Debt Resolution, in collaboration with IndusLaw. This six-month program, led by industry experts, equips you with critical skills in insolvency litigation, financial distress management, and corporate rescue strategies. Earn a prestigious certificate and elevate your expertise in a rapidly evolving field!
Recent Amendments in 2024 and 2025
The amendments made in 2024 and 2025 focuses on improving the Corporate Insolvency Resolution Process (CIRP), which is the procedure used to resolve financial distress of a company under the Insolvency and Bankruptcy Code, 2016. The changes in IBC also aims to better protect stakeholders, especially in real estate cases, where the issues such as project delays and coordination among many creditors are common. Given below is a clear breakdown of the key updates:
1. CIRP Amendment Regulations, 2025
Starting February 3, 2025, new changes to the Insolvency and Bankruptcy Code (IBC) make the process smoother and fairer, especially for real estate cases. These updates help everyone involved work together better and resolve issues faster. Here’s what’s new:
Appointing Helpers for Large Groups: In real estate projects with over 1,000 creditors, like homebuyers, the Committee of Creditors (CoC) can choose facilitators. These helpers make it easier for large groups to stay informed, communicate, and take part in decisions, keeping things fair and organized.
Including Local Authorities: In real estate cases, the CoC can invite experts from local bodies, such as NOIDA or HUDA to their meetings and these experts share important details about rules and land development, helping the CoC make smarter choices.
Project Status Reports: The experts managing the insolvency process, called resolution professionals, must now provide a detailed report on a real estate project’s progress and permissions within 60 days of starting. This helps figure out if the project can be finished and so, making planning easier.
Making It Easier for Homebuyers: Homebuyers, who often form a big group of creditors in real estate cases, now have fewer hurdles to join the process. The CoC can simplify rules so homebuyer groups only need to represent 10% of creditors or 100 creditors (whichever is smaller) to suggest solutions for resolving the insolvency.
Helping Homebuyers Get Their Homes: Resolution professionals can now assist homebuyers in taking possession of their properties, like apartments, if the CoC agrees with a 66% vote and homebuyers meet their responsibilities, such as making pending payments. This is a big step to help homebuyers who often face long delays.
These updates are crucial for real estate, where managing many stakeholders and fixing delays are big challenges. By December 31, 2024, 8,175 insolvency processes had started under the IBC, with 3,485 successfully completed, showing how important these changes are.
2. IBBI (Insolvency Professionals) Amendment Regulations, 2025
IBBI was introduced on April 7, 2025 and it focuses on improving the role of insolvency professionals, who are the experts responsible for managing the insolvency process. While specific details are not fully available, this update likely strengthens the rules and oversight for these professionals to ensure they follow high standards and manage cases effectively. This aligns with the broader goal of making the IBC more reliable and professional.
3. IBBI CIRP Regulations Amendment, 2024
IBBI CIRP came into effect on September 24, 2024. This amendment aimed to further streamline the CIRP process. Although specific details are not provided, it is part of ongoing efforts to reduce delays and make the insolvency process more efficient.
Learn about the Principles of Corporate Governance.
Proposed Amendments and Future Outlook
The government is planning to introduce the Insolvency and Bankruptcy Code Amendment Bill, 2025, which is expected to be discussed during the monsoon session of Parliament and approved by the cabinet by April 2025. This bill is not yet law as of 2025, but it is expected to bring important changes, including:
Group Insolvency: This would allow related companies (like subsidiaries or parent companies) to go through the insolvency process together which makes it easier to resolve complex cases involving multiple entities.
Cross-Border Insolvency: This would create a framework for handling insolvency cases involving companies with operations or assets in other countries,which aligns Indian laws with international standards.
These proposed changes aim to fill gaps in the current IBC framework and make it more robust for handling modern business challenges.
Impact of the Amendments
The recent amendments have had a positive impact. For example, corporate insolvency cases dropped by 28% to 724 in the financial year 2025 which suggests that the resolution process is becoming more efficient. However, challenges remain, as the recovery rate (the percentage of debt creditors recover) is still low at 18.99% for resolved cases. This indicates that even though the IBC is improving, there is still work to be done in order to ensure creditors recover more of what they are owed.
Summary
The IBC was introduced in 2016 and it provides a clear and time-bound process for resolving insolvency. The amendments in 2024 and 2025 show the commitment of the government in order to improve the law by addressing practical challenges, especially in real estate, and protecting stakeholders like homebuyers. The upcoming 2025 Amendment Bill, if passed, will further strengthen the IBC by introducing frameworks for group and cross-border insolvency, making it better suited to India’s growing and complex economy.
Related Posts:
Changes in IBC Code: FAQs
Q1. What are the recent amendments to the IBC?
The recent amendments include the CIRP Amendment Regulations, 2025 (effective February 3, 2025), which focus on facilitators for large creditor groups, homebuyer participation, and detailed reports for real estate projects. Another amendment, the IBBI (Insolvency Professionals) Regulations, 2025 (effective April 7, 2025), improves oversight of insolvency professionals.
Q2. How many times has the IBC been amended?
By December 31, 2024, the IBC has been amended six times, with additional regulatory updates like the CIRP Regulations in 2024 and 2025.
Q3. What is the latest act or amendment of the IBC?
The IBC, 2016, is the main law. The latest amendments are the CIRP Amendment Regulations, 2025 (effective February 3, 2025) and the IBBI (Insolvency Professionals) Regulations, 2025 (effective April 7, 2025).
Q4. What are the key features of the IBC, 2016?
The IBC provides a time-bound process (180–270 days) for resolving insolvency, prioritizes creditor control, aims to maximize asset value, and overrides conflicting laws through Section 238, making debt resolution more efficient.
Q5. When should the IBC be amended?
The IBC should be updated when there are delays, low recovery rates, or new challenges (like group or cross-border insolvency). Amendments are also needed to improve efficiency and compliance.
