INSOLVENCY AND BANKRUPTCY BOARD OF INDIA (Syllabus: GS Paper 3 – Economy)

Context: Recently, the Insolvency and Bankruptcy Board of India (IBBI) amended rules to exclude assets in a real estate project handed over to the allottee from the company's liquidation process, offering relief to homebuyers.

 Insolvency and Bankruptcy Board of India (IBBI)

• Establishment: On 1st October 2016 under the provisions of the Insolvency and Bankruptcy Code (IBC), 2016.
• Implementation: It plays a pivotal role in the implementation of the IBC, amending and consolidating laws related to insolvency resolution across individuals, partnership firms, and corporate entities in a time-bound manner.
• Functions: The IBBI regulates professionals and processes associated with insolvency.
• It exercises regulatory oversight over insolvency professional agencies, insolvency professional entities, insolvency professionals, and information utilities.
• Enforcement and Rulemaking: The board enforces rules governing corporate insolvency resolution, individual insolvency resolution, corporate liquidation, and individual bankruptcy under the IBC.
• Records and Information Dissemination: The IBBI collects and maintains records related to insolvency and bankruptcy cases. It also plays a role in disseminating information concerning such cases.
• Constitution and Membership: The board's constitution involves members appointed by the Central Government, including a Chairperson, three members from among officers of the Central Government representing the Ministry of Finance, Ministry of Corporate Affairs, and Ministry of Law (ex-officio), 

oone member nominated by the RBI (Reserve Bank of India) (ex-officio), and five other members nominated by the Central Government, with at least three being whole-time members.

• Term of Office: The office for the Chairperson and members (excluding ex-officio members) is five years or until they reach the age of sixty-five, whichever is earlier, and they are eligible for reappointment.