Insolvency rules change likely to strengthen Bankruptcy Board of India

An amendment in the IBC will clear any ambiguity regar­ding the rules on punitive action that can be taken by the regulator after an NCLT approval, sources said

The ministry of corporate affairs (MCA) is planning to give more powers to the Insolvency and Bankruptcy Board of India (IBBI) by empowering it to look into irregularities in transactions even after an insolvency case has been approved by the National Company Law Tribunal (NCLT).
 
Rules under the Insolvency and Bankruptcy Code (IBC) may be amended for this purpose, sources in the MCA said. “IBBI may be empowered to take the complaint to its logical conclusion,” the sources said. 
 
If the complaint is proven correct, the IBBI would be able to punish the offender. 
 
At present, IBBI