India has made a big change in its insolvency law. The Insolvency and Bankruptcy Code (Amendment) Act, 2026 got approval from the President on 6 April 2026 and is now published in the Gazette of India. The law will start on dates decided by the Central Government, and different parts may start at different times.
The main change is a new process called the Creditor-Initiated Insolvency Resolution Process (CIIRP). A new Chapter IV-A is added in the IBC for this. In this process, some financial creditors can start insolvency cases against certain companies without waiting for the company to apply. This will apply to specific types of companies that the government will decide including those with smaller assets or income.
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