THE Lok Sabha on Monday passed a Bill to amend the insolvency law to provide for strict timelines, an out-of-court settlement option and enable the framework for cross-border insolvency processes. Piloting the Bill in the Lok Sabha, Finance and Corporate Affairs Minister Nirmala Sitharaman said that 12 amendments are being made in the Insolvency and Bankruptcy Code (IBC), which came into force in 2016, that would help maximise the value for stakeholders and improve the governing process itself. Amendments seek to strengthen the existing insolvency framework, as well as address practical challenges, and incorporate evolving global best practices, the Minister said, and added that the law has been a major factor in improving the health of the country’s banking sector. The Lower House cleared the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, as reported by the Select Committee. On August 12, 2025, the Government introduced the Bill in the Lok Sabha to amend the Insolvency and Bankruptcy Code (IBC), proposing a raft of changes, including provisions to reduce the time taken for admission of insolvency resolution applications. The Bill was referred to a select committee of the Lok Sabha, which submitted its report in December 2025.

 

Sitharaman stated that all the committee’s recommendations have been accepted. IBC has been amended seven times so far. The Bill replaces the underutilised fast-track process with a new creditor-initiated insolvency framework, featuring out-of-court initiation, debtor-in-possession and creditor-in-control model, where management continues to vest in the existing Board of Directors or partners with safeguards, and defined timelines. Deliberations on to bring unorganised sector under EPFO, ESIC: Minister THE Government on Monday said that deliberations are underway to bring the unorganised sector under the ambit of the Employees’ Provident Fund Organisation and the Employees’ State Insurance Corporation. Replying to a supplementary question in the Lok Sabha during Question Hour, Union Minister of State for Labour and Employment, Shobha Karandlaje, said that “at present, it is being deliberated in the labour department that that the unorganised workers should get pension in the coming days as the prime minister desires that all those who work should get pension and they should come under the ambit of the EPFO and ESIC”. She also said that a lot of improvement is happening in the pension scheme, including the launch of the free doorstep service. Those working in the online industry can also be considered for pension in the coming days, the Minister said.