Business
Government To Close Insolvency And Bankruptcy Law Loopholes? New Rules Coming Soon, BIG Change Expected In Blood Relation Clause
New Delhi: The government is gearing up to make some of the biggest changes yet to the Insolvency and Bankruptcy Code (IBC) in the upcoming winter session of Parliament. While the law has seen several amendments since it was first introduced in 2016, the proposed IBC Amendment Bill 2025 is expected to be the most impactful.
Experts, as quoted by ZeeBiz, say that this move could strengthen the real purpose of “Ease of Doing Business”, especially since it may revise Section 29A, which currently prevents a company’s promoters and their blood relatives from taking part in the insolvency resolution process.
What is Section 29A of the IBC?
Section 29A of the Insolvency and Bankruptcy Code (IBC) is an important provision that defines who can and who cannot participate in the resolution process of an insolvent company. Under this section, the company’s promoter and their blood relatives are restricted from taking part in the bidding or resolution process of that same company.
The government’s intention behind this rule was to ensure that the promoters of a bankrupt company, or people closely associated with them, do not regain control of the same company. However, industry experts argue that this provision is “extremely broad”. They say it ends up restricting even those individuals who may not have any direct business connection with the company — but are only related to the promoter by family ties.
“Time to Amend Section 29A”
Many industry bodies and corporate law experts believe that the time has come to amend this section, as per ZeeBiz. They argue that if a relative has no financial or managerial involvement with the company, then they should not be barred from participating in the IBC process just because they are a “blood relative” of the promoter.
Industry’s View Presented Before the Select Committee
The proposal to amend the IBC is currently being reviewed by a Select Committee chaired by Baijayant Panda. Various stakeholders have been presenting their views and recommendations before the committee.
One of the key suggestions placed before the committee is to redefine the “blood relation” clause under Section 29A. Industry representatives argue that the definition of a “related party” should be limited only to business relationships, not personal family ties.
They suggest that a person’s bid should be restricted only if the source of their investment is directly linked to the company promoter’s funds, rather than just because they are a family relative.
What Will Change If the Amendment Is Approved?
If this amendment goes through, many large corporate groups in the country will be allowed to participate in IBC cases involving companies linked to their blood relatives. This could speed up the insolvency resolution process, as it would increase the number of potential bidders and create more competition.
Experts believe that this move could not only improve the success rate of IBC cases but also strengthen the true intent of “Ease of Doing Business” in India.
Six Major Amendments Have Already Been Made to the IBC
Since its introduction in 2016, the Insolvency and Bankruptcy Code has undergone six major amendments, each aimed at making the insolvency process faster, more transparent, and more investor-friendly. However, experts say that provisions like Section 29A no longer fit well with the current business environment, and updating it has now become necessary.
MUMBAI: Navi Mumbai International Airport (NMIA) opens to commercial operations on Thursday after years of missed deadlines, opening a second gateway for air travel in the Mumbai region. The day will see four airlines operating about 30 domestic flights at India’s newest greenfield airport. The first scheduled arrival will be an IndiGo flight from Bengaluru, touching down at 8 am, while the first departure will also be operated by IndiGo, a morning service from Navi Mumbai to Hyderabad, scheduled to take off at 8.40 am. The terminal building will open to departure passengers around 6.40 am, said an NMIA spokesperson.“On Day One, domestic services will be operated by IndiGo, Air India Express, Akasa Air and Star Air connecting NMIA to nine destinations across India. The airport will handle 15 scheduled departures on the first day,” said an NMIA spokesperson.“During the initial phase, NMIA will operate between 8 am and 8 pm, with up to 24 scheduled daily departures to 13 destinations and the capability to manage up to 10 aircraft movements per hour. From Feb 2026, operations are planned to progressively scale up to round-the-clock services,” the spokesperson added. “Passenger services from day one will be supported by Digi Yatra-enabled contactless processing at designated touchpoints, along with trained terminal staff across kerbside, check-in, security and boarding areas,” the spokesperson said. Conventional check-in counters too will be available for passengers not opting for Digiyatra. Retail and food and beverage offerings have been curated with a focus on affordability and local preferences, the airport said.In its initial phase, NMIA opens with terminal 1 and one operational runway; the terminal building has a capacity to handle 20 million passengers annually, but it is expected to touch that number before mid-2026. The terminal building can accommodate about 2-3 million passengers beyond its declared capacity. The new airport is 45-50 km from North Mumbai, 35-40 km from South Mumbai and 35-45 km from the eastern suburbs.
Business
Logistics IPO: Yatayat Corporation files Sebi papers to raise funds; growth surge puts road freight firm in focus – The Times of India
Logistics and transportation services provider Yatayat Corporation India Ltd has filed draft papers with markets regulator Sebi to raise funds through an initial public offering, as the road freight segment continues to see strong demand, PTI reported.According to the draft red herring prospectus (DRHP), the proposed IPO will comprise a fresh issue of up to 77 lakh equity shares along with an offer for sale (OFS) of up to 56 lakh equity shares by a promoter, taking the total offer size to as many as 1.33 crore shares.The company said proceeds from the fresh issue will be used primarily to meet working capital requirements and for general corporate purposes.Yatayat Corporation operates in the road logistics space, with a focus on Full Truck Load (FTL) transportation, offering point-to-point freight movement across major logistics corridors in the country. Its operations are supported by a network of 34 branches and one warehouse spread across 12 states.The company services a diversified client base spanning agriculture and agri-inputs, building materials and construction, chemicals and allied industries, energy and power, engineering and industrial manufacturing, IT and technology solutions, metals and mining, textiles and apparel, as well as other industrial and consumer segments.On the financial front, Yatayat Corporation reported revenue from operations of Rs 448.13 crore in FY25, up from Rs 348.34 crore in FY24. Profit after tax rose to Rs 30 crore in FY25, compared with Rs 15 crore in the previous financial year.Unistone Capital has been appointed as the sole book-running lead manager to the issue, the draft papers showed.
WH Smith is to claw back around £1.5 million in overpaid bonuses from former bosses following an accounting blunder at the retail firm’s US arm.
The travel retail specialist confirmed last week it is being investigated by the UK’s financial watchdog after it overstated profits for its North American business by as much as £50 million due to issues with its audit process.
Carl Cowling resigned as WH Smith’s chief executive last month after a report by Deloitte confirmed the accounting problems.
The company said on Wednesday in its annual report that annual bonus payments for Mr Cowling and former finance chief Robert Moorhead have been recalculated for 2023 and 2024.
It has also recalculated the payment of long-term share bonuses from a 2021 scheme for executives.
WH Smith said it overpaid Mr Cowling £516,000 in cash and 60,182 deferred shares worth £374,933 based on the latest closing price for the firm.
It overpaid Mr Moorhead by £372,000 in cash and £272,493 worth of shares.
It said it would now seek to “claw back” both of these payments from the former bosses.
WH Smith also confirmed that it did not pay annual or long-term bonuses to Mr Cowling for the past financial year.
As a result, his total pay deal tumbled to £724,000 for the year to August 2025, from £2.71 million for the same period a year earlier.
The retailer told investors last week that it had kickstarted a remediation plan, which aims to strengthen its governance and controls, ensure processes are aligned across the group, and enact cultural change involving training and monitoring.
Its board is currently searching for a permanent group chief executive.
WH Smith is now focused solely on its 1,300 shops in global travel locations, including at airports and train stations, after selling its high street chain of about 480 shops to Hobbycraft owner Modella Capital in June.
As part of the deal, the WH Smith name is disappearing from British high streets and being replaced by brand TGJones.
The slimmed-down business reported a pre-tax profit of £108 million for the year to the end of August, excluding what it deems one-off costs.
Navi Mumbai airport opens today with 30 domestic flights – The Times of India
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