Connect with us

Business

Government To Close Insolvency And Bankruptcy Law Loopholes? New Rules Coming Soon, BIG Change Expected In Blood Relation Clause

Published

on

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?

Add Zee News as a Preferred Source


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.



Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Piyush Goyal Dismisses Rahul Gandhi’s Farmer Meet Video, Rebuts ‘Fake Narrative’ On India-US Trade Deal

Published

on

Piyush Goyal Dismisses Rahul Gandhi’s Farmer Meet Video, Rebuts ‘Fake Narrative’ On India-US Trade Deal


Last Updated:

The minister offered a detailed reality check to counter what he termed ‘Rahul ji’s fakery’

Goyal reiterated that Prime Minister Narendra Modi’s policies are intrinsically linked to farmer welfare. (File Photo: PTI)

Goyal reiterated that Prime Minister Narendra Modi’s policies are intrinsically linked to farmer welfare. (File Photo: PTI)

Union Commerce Minister Piyush Goyal has accused Congress leader Rahul Gandhi of orchestrating a “fake narrative” aimed at provoking India’s farming community. Responding to a video released on social media by the Leader of the Opposition on Friday, Goyal dismissed the interaction as a stage-managed performance featuring Congress activists masquerading as genuine farmer leaders. He asserted that the dialogue followed a predetermined script designed to mislead the public regarding the safeguards in the recent India-US trade deal.

Rahul Gandhi has alleged that “any trade deal that takes away the livelihood of farmers or weakens the food security of the country is anti-farmer”. He was pointing to the recently concluded India-US framework agreement for bilateral trade, which is expected to be signed after tweaks by the end of March.

Piyush Goyal offered a detailed reality check to counter what he termed “Rahul ji’s fakery”, placing on record that the Narendra Modi government has fully protected the interests of annadatas, fishermen, MSMEs, and artisans. The minister categorically clarified that sensitive crops like soyameal and maize have been granted no concessions whatsoever in the agreement, ensuring that domestic farmers remain shielded from competitive pressure. He criticised the opposition for repeating “baseless allegations” in an attempt to instill unnecessary fear among the rural population.

Addressing specific claims regarding apple and walnut imports, the minister provided a technical breakdown of the protectionist measures in place. He noted that while India already imports approximately 550,000 tonnes of apples annually due to high domestic demand, the new US deal does not allow unlimited entry. Instead, a strict quota has been established, far below current import levels, and subject to a Minimum Import Price (MIP) of Rs 80 per kg. With an additional duty of Rs 25, the landed cost of US apples will be roughly Rs 105 per kg—significantly higher than the current average landed cost of Rs 75 per kg from other nations—thereby ensuring Indian growers are not undercut. Similarly, for walnuts, the US has been offered a modest quota of 13,000 metric tonnes against India’s total annual import requirement of 60,000 metric tonnes, making it impossible for the deal to harm local producers.

Goyal also took a swipe at the historical record of the Congress party, pointing out the irony of its current stance. He reminded the public that during the Congress-led UPA era, India imported nearly $20 billion worth of agricultural products, including dairy items, which the current administration has strictly excluded from the US pact. He challenged Rahul Gandhi to explain his “betrayal of farmers” and questioned how much longer the opposition intended to peddle fabricated stories.

Concluding with the slogan “Kisan Surakshit Desh Viksit”, Goyal reiterated that Prime Minister Narendra Modi’s policies are intrinsically linked to farmer welfare. He maintained that the India-US agreement is a balanced framework that opens new markets for Indian exports like basmati rice and spices while keeping the nation’s agricultural backbone secure.

News politics Piyush Goyal Dismisses Rahul Gandhi’s Farmer Meet Video, Rebuts ‘Fake Narrative’ On India-US Trade Deal
Disclaimer: Comments reflect users’ views, not News18’s. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.

Read More



Source link

Continue Reading

Business

Without Rera data, real estate reform risks losing credibility: Homebuyers’ body – The Times of India

Published

on

Without Rera data, real estate reform risks losing credibility: Homebuyers’ body – The Times of India


New Delhi: More than 75% of state real estate regulators, Reras, have either never published annual reports, discontinued their publication or not updated them despite statutory obligation and directions from the housing and urban affairs ministry, claimed homebuyers’ body FPCE on Friday. It released status report of 21 Reras as of Feb 13.The availability of updated annual reports is crucial as these contain details of data on performance of Reras, including project completion status categorised by timely completion, completion with extensions, and incomplete projects. The ministry’s format for publishing these reports also specifies providing details such as actual execution status of refund, possession and compensation orders as well as recovery warrant execution details with values and list of defaulting builders.FPCE said annual report data is not only vital for homebuyers to assess system credibility, but is equally necessary for both state and central govts to frame effective policies, design incentivisation schemes, and develop tax policy frameworks.“Unless we have credible data proving that after Rera the real estate sector has improved in terms of delivery, fairness, and keeping its promises, we are merely firing in the air,” said FPCE president Abhay Upadhyay, who is also a member of the govt’s Central Advisory Council on Rera.As per details shared by the entity, seven states — Karnataka, Tamil Nadu, West Bengal, Andhra Pradesh, Himachal Pradesh and Goa — have never published a single annual report since Rera’s implementation, and nine states, including Maharashtra, Uttar Pradesh and Telangana, which initially published reports, have discontinued the practice.Upadhyay said when regulators themselves don’t follow the law, they lose the legal right to demand compliance from other stakeholders. “Their failure emboldens builders and weakens the very system they are meant to safeguard,” he said.



Source link

Continue Reading

Business

Infosys Rolls Out 85% Average Performance Bonus In Q3FY26, Best In Over 3 Years

Published

on

Infosys Rolls Out 85% Average Performance Bonus In Q3FY26, Best In Over 3 Years


Last Updated:

Over recent quarters, payouts had gradually improved from roughly 65 percent to 80 percent and now to an average of about 85 percent in Q3FY26.

Infosys logo is seen.

Infosys logo is seen.

IT major Infosys rolled out performance bonus payouts averaging around 85 percent for the quarter ended December 31, 2025 (Q3FY26), marking the strongest variable pay outcome for eligible employees in at least the past three-and-a-half years, Moneycontrol reported citing people in the know.

The bonus payout for mid- to junior-level employees ranges between 75 percent and 100 percent, with most employees clustering around the organisation-wide average of 85 percent, the report said. The development signals a steady recovery in variable compensation at the Bengaluru-headquartered IT services firm. Over recent quarters, payouts had gradually improved from roughly 65 percent to 80 percent and now to an average of about 85 percent in Q3FY26.

Employees are expected to receive their bonus letters over the next few days, with the payout scheduled to be credited along with their February salary.

One employee told the outlet that it is the strongest bonus outcome seen in recent years. The payout is also among the rare instances since the Covid-19 period when variable pay has approached the upper end of the eligible range.

Infosys last paid out 100 percent variable compensation during the pandemic. In the quarters that followed, payouts were lower amid macroeconomic uncertainty and a broader slowdown in client spending across global markets.

The higher payout comes at a time when global IT stocks have faced renewed pressure, driven by concerns over rapid advances in artificial intelligence and their potential impact on traditional IT services models.

Shares of global IT firms have seen sharp sell-offs in recent weeks amid heightened investor focus on AI leaders such as Anthropic. Investors fear that generative AI tools could compress pricing, automate routine services work and reduce demand for legacy outsourcing models.

Against that backdrop, the improved bonus payout at Infosys is being viewed as a signal of operational resilience and near-term performance strength, even as sentiment around the broader IT sector remains cautious.

Click here to add News18 as your preferred news source on Google.

Follow News18 on Google. Join the fun, play games on News18. Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. To Get in-depth analysis, expert opinions, and real-time updates. Also Download the News18 App to stay updated.
News business markets Infosys Rolls Out 85% Average Performance Bonus In Q3FY26, Best In Over 3 Years
Disclaimer: Comments reflect users’ views, not News18’s. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.

Read More



Source link

Continue Reading

Trending