Union Finance Minister Nirmala Sitharaman introduced a bill in the Lok Sabha on Thursday to amend the Insolvency and Bankruptcy Code amid protests from the Opposition that demanded the bill to be referred to a standing committee for scrutiny.
The amendments seek to remove bottlenecks and streamline the corporate insolvency resolution process, wherein successful bidders will be ring-fenced from any risk of criminal proceedings for offences committed by previous promoters of companies concerned.
The Insolvency and Bankruptcy Code (IBC), which came into force in 2016, has already been amended thrice. The latest changes pertain to various sections as well as introduction of a new section.
Explaining the rationale, Sitharaman said the amendment has been necessitated because there was lot of doubt in the mind of small home buyers and others.
"Some amendments were required in addition to what we did in July. Therefore, we have come back," she said.
Acknowledging that a two-day mandatory notice had not been given in this case, Sitharaman said: "It is in response to development which we see in the economy.... Please do helps us to respond to the economy as all of us are equally concerned."