IBC Amendment Bill 2025 – Strengthening Insolvency Resolution in India

IBC Amendment Bill 2025

IBC Amendment Bill 2025 Latest News

  • The Insolvency and Bankruptcy Code (Amendment) Bill, 2025 was introduced in the Lok Sabha by Finance Minister Nirmala Sitharaman to address persistent delays, maximise stakeholder value, and align the insolvency framework with international best practices. 
  • The IBC Amendment Bill 2025 seeks to overhaul admission procedures, introduce out-of-court resolutions, and implement group and cross-border insolvency mechanisms.

Background - IBC’s Evolution and Challenges

  • The Insolvency and Bankruptcy Code (IBC): It was introduced in 2016 to provide a time-bound mechanism for rescuing and reorganising distressed companies.
  • Achievements: It brought a culture of accountability, credit discipline among debtors.
  • Challenges:
  • Procedural delays
  • Shortage of personnel
  • High backlog of cases
  • Steep haircuts for creditors
  • Deviations from original principles

Key Provision in the IBC Amendment Bill 2025

  • Faster admission of insolvency cases:
    • Mandatory admission if default is proven, procedural compliance is met, and no disciplinary proceedings against the resolution professional.
    • Records from financial institutions deemed conclusive proof of default.
    • The 14-day timeline for the National Company Law Tribunal (NCLT) to decide on admission is to be strictly enforced; delays must be recorded in writing.
    • Current scenario: 
      • The average time taken for admission is around 434 days. 
      • In 2022, the Supreme Court had held that admission within 14 days was not a mandatory provision of the IBC.
      • This means that the NCLT had discretionary powers on deciding whether or not to admit the insolvency application - the Bill seeks to remove this.
  • Out-of-court resolution - Creditor-Initiated Insolvency Resolution Process (CIIRP):
    • Targets genuine business failures to reduce burden on NCLT.
    • 51% creditor consent needed to initiate CIIRP.
    • Corporate debtors retain management with oversight by resolution professionals (with veto powers).
    • Timeline: The CIIRP process would be required to be concluded within 150 days. In case of failure, the normal CIIRP process can be converted to standard corporate insolvency resolution process (CIRP).
  • Group insolvency framework:
    • Coordinated resolution for companies in the same corporate group.
    • Aims to reduce value loss from fragmented proceedings.
    • Allows for common resolution professionals and joint committee of creditors (CoC) panels.
  • Cross-border insolvency framework:
    • Facilitates recognition of Indian insolvency proceedings abroad.
    • Improves recovery of foreign assets and boosts investor confidence.
    • Aligns with the United Nations Commission on International Trade Law (UNCITRAL) Model Law and global best practices.
  • Enhancements in liquidation process:
    • CoC empowered to supervise liquidation and replace liquidator with 66% vote.
    • The moratorium under CIRP extended to the liquidation stage.
    • Direct dissolution allowed for negligible assets.
    • Restoration of CIRP permitted once, on CoC request.
  • Other notable provisions:
    • Expanded definition of resolution plan to include asset sales.
      • Restrictions on corporate applicant nominating resolution professionals.
      • Withdrawal of CIRP applications limited after key stages.
      • Avoidance transaction proceedings can continue post-resolution.
    • Removal of interim moratorium for personal guarantors.
      • Provision to prevent fraudulent transactions.
      • Clarification on priority of government dues.

Significance of the IBC Amendment Bill 2025

  • It addresses long-pending procedural bottlenecks.
  • It promotes ease of doing business and investor confidence.
  • It aligns India’s insolvency ecosystem with global standards.
  • It encourages timely resolution and value maximisation for stakeholders.

Conclusion

  • If effectively implemented, the IBC Amendment Bill 2025 could transform India’s insolvency regime into a swift, transparent, and globally competitive framework, reducing delays and maximising asset value. 
  • By integrating out-of-court mechanisms, group and cross-border insolvency provisions, and stronger governance, it can position India as a trusted destination for investment and corporate restructuring in the coming decade.

Source: IE

IBC Amendment Bill 2025

Q1: What is the significance of the mandatory admission provision in the IBC Amendment Bill 2025?

Ans: It ensures that proven defaults with procedural compliance are admitted without discretionary delays, thereby speeding up insolvency resolution.

Q2: What is the Creditor-Initiated Insolvency Resolution Process (CIIRP) introduced in the amendment bill?

Ans: CIIRP is an out-of-court mechanism for genuine business failures that enables faster, cost-effective resolutions with minimal business disruption.

Q3: What is the objective of the proposed Group Insolvency Framework under the IBC amendments?

Ans: It aims to coordinate insolvency proceedings of related group entities to maximise value and reduce duplication of efforts.

Q4: What is the importance of a Cross-Border Insolvency Framework in India’s economic landscape?

Ans: It aligns India’s insolvency process with global best practices, enabling recognition abroad and aiding recovery of foreign assets.

Q5: How does the amendment bill seek to improve the liquidation process under the IBC?

Ans: It empowers the Committee of Creditors to supervise and replace liquidators, extends moratorium, and allows direct dissolution for negligible assets.

Returning Sterilised Dogs: Key to Successful Animal Birth Control Programme

Returning Sterilised Dogs

Returning Sterilised Dogs Latest News

  • The Supreme Court recently criticised the practice of returning sterilised stray dogs to their original locations under the Animal Birth Control (ABC) programme, calling it “unreasonable and absurd.” This view found support among those impacted by aggressive stray dog packs. 
  • However, experts point out that returning sterilised dogs is actually central to the ABC method’s effectiveness. 
  • The approach aims to stabilise stray populations by ensuring sterilised dogs occupy their territories, preventing unsterilised ones from moving in and breeding, thereby gradually reducing overall numbers.

Importance of Returning Sterilised Dogs to the Streets

  • In sterilisation-based population control, females are the primary targets, as unsterilised males can still impregnate all fertile females, undermining the effort. 
  • Spaying females directly curbs reproduction, while neutering males can also reduce aggression — lowering human-dog conflicts. 
  • Effective Animal Birth Control (ABC) programmes target both sexes, aiming to sterilise at least two-thirds (ideally 70%) of the dog population within a year. 
  • Since sterilisation cannot happen all at once, returning sterilised dogs to their original territories prevents unsterilised newcomers from moving in and breeding. 
  • This territorial stability is crucial for ensuring the programme’s long-term success.

Keeping Streets ‘Unproductive’ for Stray Dog Breeding

  • If sterilised dogs from certain streets are removed and not returned, those areas become vacant, attracting unsterilised dogs from nearby streets. 
  • With easy access to resources like garbage dumps, these newcomers breed quickly, undoing sterilisation efforts. 
  • Returning sterilised dogs ensures that these territories remain occupied by animals that cannot reproduce, preventing fertile dogs from moving in. 
  • This practice also preserves the local dogs’ social structure, reducing conflicts. 
  • Most importantly, in the early stages of an ABC drive, it helps secure each area’s progress step-by-step, making population control more sustainable.

Crisis of Capacity in Implementing SC’s Stray Dog Shelter Order

  • The Supreme Court’s directive to build shelters and house 5,000–6,000 stray dogs within six to eight weeks has caught Delhi’s civic authorities unprepared. 
  • With no government-owned shelters and only around two dozen NGO-run facilities accommodating fewer than 3,000 dogs, capacity is a major hurdle. 
  • Housing thousands of unrelated dogs together also raises welfare concerns — stress, anxiety, and aggression can result despite standard protocols like individual cages with barriers. 
  • Moreover, dogs are inherently social, forming packs and hierarchies in open environments, making large-scale captivity unsuitable for their behavioural well-being.

Inadequacies in Delhi’s ABC Drive

  • Delhi’s lack of holding capacity to meet the Supreme Court’s directive also exposes the severe shortcomings of its Animal Birth Control (ABC) program. 
  • With an estimated 8 lakh street dogs, effective control requires sterilising 70% — around 5.5 lakh — within a year. 
  • Spread over 300 working days, this means operating on 1,800 dogs daily.
  • Given that each dog needs to be housed for pre- and post-operative care for four days, Delhi would require kennel space for 7,200 dogs at a time. 
  • In reality, the city’s total holding capacity is under 3,000, meaning the ABC program operates at only about 40% of the required scale. 
  • This gross shortfall explains why the drive has failed to stabilise the stray dog population.

Irresponsible Pet Ownership and its Impact on ABC

  • A weak ABC drive in India is further undermined by irresponsible pet ownership. 
  • Without a national law mandating dog registration, and with only a few cities having poorly enforced rules, there is no systemic accountability for pet owners. 
  • Sterilisation and vaccination of pets are also not mandatory.
  • As a result, hundreds of unwanted dogs and pups are abandoned daily, while many pet dogs are allowed to roam freely or escape, breeding with street strays. 
  • This constant influx fuels the stray dog population, making the so-called “Indian street dog” predominantly a mix of crossbreeds.
  • Experts recommend that ABC programs should also target pedigreed pets with high breeding rates. 
  • Governments could encourage compliance by offering incentives for registration and sterilisation, and by imposing steep taxes on breeding pets to curb irresponsible ownership.

Feeding Strays: A Trigger for Aggression

  • In urban areas, many residents feed stray dogs outside homes or workplaces, inadvertently making them territorial and aggressive. 
  • According to experts, true stray dogs form stable packs, are cautious of people, and are mostly active at night. In contrast, abandoned or loosely supervised pets tend to stay near human activity and have smaller roaming areas. 
  • These “proxy pets” are more likely to show aggression towards people who neither feed nor pet them, creating a recipe for conflict in shared public spaces.

Source: IE | ToI

Returning Sterilised Dogs FAQs

Q1: What is the main goal of the Animal Birth Control (ABC) programme?

Ans: To reduce stray dog populations through targeted sterilisation, primarily focusing on both male and female dogs for effective results.

Q2: Why is returning sterilised dogs to streets essential in ABC?

Ans: It prevents unsterilised dogs from occupying the area, maintaining an ‘unproductive’ population and reducing chances of repopulation.

Q3: What percentage of street dogs must be sterilised annually for ABC to be effective?

Ans: At least 70% of the population should be sterilised within one year for meaningful impact.

Q4: How does pet abandonment affect ABC success?

Ans: Abandoned pets and pups increase stray populations, undermining sterilisation efforts and leading to more crossbred street dogs.

Q5: What measures can improve ABC outcomes besides sterilisation?

Ans: Pet registration, mandatory sterilisation, incentives for compliance, and taxes on breeding pets can help control stray numbers.

Trumponomics: Why the Predicted US Economic Crash Hasn’t Happened Yet

Trumponomics

Trumponomics Latest News

  • Six months after US President Donald Trump’s sweeping tariff hikes, the predicted economic collapse has not materialised. 
  • The S&P 500 is about 10% higher since “Liberation Day,” and the dollar, after dipping, has recently strengthened. 
  • Despite tariffs on almost all major trading partners, consumer prices in the US have not spiked significantly. 
  • The muted inflation response raises the key question: will tariffs trigger only a one-time price jump, or lead to prolonged inflationary pressure?
  • This article examines the unexpectedly modest short-term economic impact of “Trumponomics,” specifically the aggressive tariff strategy implemented by President Trump.

Tariff Magnitude and Global Reach

  • The US has increased tariffs significantly on virtually all trading partners — 15% on economies like the EU, Japan, and South Korea, and 35–50% on countries such as Canada, Switzerland, Brazil, and India. 
  • With January’s average tariff at 3%, current rates could average 15–20%, a shift that is inherently inflationary even if importers or retailers absorb some of the costs.

US Economy’s Current Resilience Amid High Tariffs

  • The US economy has retained stability despite higher import duties, largely because President Trump inherited a growing economy with over 2% GDP growth, near full employment, and low inflation. 
  • Stock markets have also been buoyed by the booming artificial intelligence sector, significantly boosting tech company earnings and market sentiment.
  • Importers accelerated shipments ahead of tariff enforcement, meaning many goods currently on shelves are not yet affected by higher duties. 
  • Additionally, Trump’s repeated waivers and deadline extensions have delayed the full impact of tariffs.
  • Warning Signs in the Labour Market
    • Despite overall resilience, labour market data shows weakness. 
    • In July, non-farm payrolls rose by only 73,000, with significant downward revisions for May and June.
  • Risks Ahead: Inflation and Job Losses
    • While inflation has not surged yet, higher import costs are expected to filter into prices, potentially denting consumer demand and slowing job creation. 
    • The Fall-Winter/Christmas season could reveal these strains, influencing voter sentiment ahead of midterm elections.

Signs of a Looming US Economic Slowdown

  • Inflationary effects are becoming evident, with major retailers like Costco and Walmart raising prices on appliances, furniture, tools, and children’s items. 
  • These increases indicate that higher import costs from tariffs are starting to filter through to consumers.
  • US GDP grew at an annualised 3% in Q2 2025, rebounding from a 0.5% contraction in Q1. 
  • However, this surge was largely due to strong consumer spending on goods imported in advance of tariffs. This temporary boost raises concerns about a sharp slowdown in the coming quarters.

Fiscal Concerns and Rising Treasury Yields

  • Trump’s tax bill has sparked worries about the US deficit
  • These concerns were reflected in the recent rise in Treasury yields following a weak $42 billion bond auction. 
  • The 10-year note yield rose to 4.22%, and the 30-year bond yield climbed to 4.813%, signalling investor apprehension.
  • The US Federal Reserve faces a dual challenge: balancing the need to contain inflation without exacerbating weaknesses in the job market
  • Keeping interest rates high could stabilise prices but also risk further employment slowdown. 
  • With inflation expected to rise and job creation likely to taper, the Fed’s policy decisions are under intense scrutiny.

High Tariffs Likely to Persist Beyond Trump

  • The latter half of 2025 is expected to be more volatile, with Trump’s unpredictable tariff policies beginning to influence long-term pricing decisions. 
  • In this new trade environment, companies will thrive not only through innovation or efficiency, but also by navigating the tariff framework skillfully and lobbying effectively for government concessions. 
  • The resulting heavy spending on lobbying will make it politically and economically challenging to dismantle these tariffs, even if a future administration desires to do so. 
  • Consequently, the US is likely to maintain a high-tariff trade stance well beyond Trump’s tenure.

Source: IE | TAP

Trumponomics FAQs

Q1: What was the predicted impact of Trump’s tariff hikes?

Ans: Economists feared a sharp economic slowdown, rising inflation, and market instability, but these have not materialised yet.

Q2: Why has the US economy remained resilient so far?

Ans: Strong pre-existing growth, stock market gains from AI, and front-loaded imports have delayed tariff impacts.

Q3: What warning signs are emerging in the US economy?

Ans: Slowing job growth, inflation in retail goods, and signs of weakening consumer demand point to possible slowdown ahead.

Q4: Why might high tariffs persist beyond Trump’s presidency?

Ans: Businesses investing in lobbying and adapting to the tariff regime make reversal politically and economically difficult.

Q5: How is the Federal Reserve positioned in this scenario?

Ans: It faces a dual challenge — controlling inflation while avoiding further harm to an already weakening job market.

Expansion of SC/ST Scholarships

SC/ST Scholarships

SC/ST Scholarships Latest News

  • The Centre is considering raising parental income limits for SC/ST scholarships from FY 2026-27 to widen access amid declining beneficiary numbers.

Introduction

  • The Union government is considering significant changes to the eligibility criteria for pre-matric and post-matric scholarships for Scheduled Castes (SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs), and Denotified Tribes (DNTs).
  • One key proposal under discussion is the upward revision of the parental income limit, aimed at expanding access to these schemes from the financial cycle 2026-27 to 2030-31.
  • The move comes amid declining beneficiary numbers and calls from Parliamentary committees to make the income criteria more inclusive.

About SC/ST Scholarships

  • These scholarships are centrally sponsored schemes jointly funded by the Union and State governments in a 60:40 ratio (90:10 for the Northeastern states).
  • They provide financial assistance to students from marginalised communities to support their education:
    • Pre-Matric Scholarships: Typically cover Classes IX and X. For SCs, they are available from Classes I to X for children of parents engaged in “unclean or hazardous” occupations.
    • Post-Matric Scholarships: Cover education beyond Class X.
    • Current Eligibility: The annual parental income must not exceed Rs. 2.5 lakh.

Proposed Revisions to Income Limits

  • For STs: The Ministry of Tribal Affairs is considering increasing the limit to Rs. 4.5 lakh for both pre-matric and post-matric scholarships.
  • For SCs, OBCs, and DNTs: The Social Justice Ministry is discussing similar revisions.
  • Parliamentary panels have suggested doubling the income ceiling for OBC scholarships and introducing pre-matric scholarships from Class V onwards for OBCs.

Budgetary Allocation and Importance

  • For FY 2025-26:
    • Centrally sponsored scholarships for SCs, OBCs, EBCs, and DNTs account for 66.7% of the Social Justice Ministry’s Rs. 13,611 crore budget.
    • For STs, such scholarships make up 18.6% of the Tribal Affairs Ministry’s Rs. 14,925.81 crore allocation.
  • These figures underline the schemes’ central role in enabling education for disadvantaged communities.

Declining Beneficiary Trends

  • Government data reveals a worrying decline in scholarship beneficiaries:
    • SCs: Pre-matric beneficiaries fell by 30.63% (2020-21 to 2024-25); post-matric by 4.22%.
    • OBCs, EBCs, DNTs: Pre-matric beneficiaries dropped from 58.62 lakh (2021-22) to 20.25 lakh (2023-24); post-matric fell from 43.34 lakh to 38.42 lakh.
    • STs: Pre-matric numbers fell by 4.63 lakh; post-matric by 3.52 lakh in the same period.

Recommendations from Parliamentary Committees

  • Two key Parliamentary panels have flagged the need for reforms:
  • OBC Welfare Committee:
    • Urged doubling the income limit for OBC pre- and post-matric scholarships.
    • Recommended expanding pre-matric coverage to start from Class V.
  • Panel on Tribal Affairs and Social Justice:
    • Suggested revising parental income limits for ST scholarships.
    • Emphasised that current limits exclude many families in need.
  • Both committees stressed that scholarships are vital tools for social mobility, and overly restrictive criteria undermine their purpose.

Socio-Economic Impact of Raising Income Limits

  • Raising the parental income ceiling could:
    • Expand Coverage: Include more lower-middle-income families who still face financial barriers.
    • Reduce Dropouts: Enable continued education beyond primary levels.
    • Bridge Inequality: Help disadvantaged communities access higher education and competitive careers.
  • However, it will also require higher budgetary allocations and robust monitoring to ensure genuine beneficiaries receive aid.

Future Outlook

  • If approved, the revised limits will take effect in FY 2026-27, coinciding with the start of a new five-year financial planning cycle.
  • The government’s challenge will be to balance inclusivity with fiscal sustainability, while ensuring the scholarships reach intended recipients without leakages.

SC/ST Scholarships FAQs

Q1: What is the current parental income limit for SC/ST scholarships?

Ans: The limit is ₹2.5 lakh annually for both pre-matric and post-matric scholarships.

Q2: What change is the government considering?

Ans: Raising the limit to ₹4.5 lakh for ST scholarships, with similar revisions for SC, OBC, and DNT categories.

Q3: Why is the change being proposed?

Ans: To expand coverage as current limits exclude many needy families and beneficiary numbers are declining.

Q4: How are these scholarships funded?

Ans: They are centrally sponsored schemes funded jointly by the Union and State governments in a 60:40 ratio (90:10 for Northeastern states).

Q5: What did Parliamentary panels recommend?

Ans: They urged a substantial increase in income limits and expanded coverage, including starting OBC pre-matric scholarships from Class V.

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