India Insolvency and Bankruptcy Code developments

In August 2026, a conclave titled ‘IBC @ Crossroads: A Decade of Evolution, The Road Ahead’ was held in Kolkata to review ten years of the Insolvency and Bankruptcy Code (IBC). Organized with support from the Insolvency and Bankruptcy Board of India (IBBI), the event brought together legal practitioners, regulators, and bankers to discuss the future direction of the insolvency ecosystem.

By September 2026, the IBBI issued warnings regarding the misuse of the IBC framework. The regulator noted that certain entities have exploited the code to mitigate tax liabilities, evade investigations, or facilitate mergers without scrutiny. The IBBI identified red flags such as processes initiated by single non-institutional creditors who then dominate creditor panels.

Additionally, the IBBI took enforcement action by suspending insolvency professional Anurag Jain for two years. The disciplinary committee found that Jain improperly raised interim finance from an entity where he served as a director without obtaining necessary approval from the Committee of Creditors, using the funds to cover his own professional and legal fees.