Finance Minister Nirmala Sitharaman on Monday (March 30, 2026) defended the Insolvency and Bankruptcy Code (IBC) in Parliament, citing the high level of realisations from the distressed assets, recovery for creditors, and turnaround of companies that have emerged from the resolution process.
Replying to the debate on the Insolvency and Bankruptcy (Amendment) Bill 2026, the Finance Minister said that the point of the IBC was not debt recovery, but instead the rescue of viable businesses and addressing their financial stress.
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“The IBC is a framework for rescuing viable businesses and resolving financial stress while preserving the enterprise value,” Ms. Sitharaman explained. “It was never intended to be a debt-recovery tool. Recovery values are a byproduct. The main intention is to rescue viable businesses and make sure that we resolve the financial issues that they face.”
