MCA Plans IBC Change To Ease Insolvency Bid Rules

The Ministry of Corporate Affairs is expected to amend the Insolvency and Bankruptcy Code (IBC) to clarify that bidders are not required to seek prior approval from the Competition Commission of India (CCI) before submitting resolution plans.

This move follows the Supreme Court’s rejection of AGI Greenpac’s winning bid for Hindustan National Glass in January due to the absence of CCI clearance before Committee of Creditors (CoC) approval. The amendment may target Section 31(4) of the IBC, which currently mandates prior CCI nod for combinations under the Competition Act, 2002. Experts believe this change will reduce procedural delays. Government officials indicated the proposal is likely to be tabled in the upcoming Parliament session as part of broader reforms to the insolvency framework.