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Updated: September 7, 2025 19:46 IST

National Company Law Tribunal, NCLT, IBC, Nirmala Sitharaman

Fund transfer before personal insolvency now more difficult

The government’s IBC Amendment Bill 2025 introduces Section 164A, empowering resolution professionals to reverse fund transfers made before personal insolvency.…

By Manu Kaushik

Business

September 7, 2025 19:35 IST

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Fund transfer before personal insolvency now more difficult

Business28 min ago

The Insolvency and Bankruptcy Code (Amendments) Bill, 2025 introduces section 164A to prevent company promoters from diverting funds before filing for personal insolvency. This allows resolution professionals to bring back “avoidance transactions” and discourage personal guarantors from transferring assets. The section also aims to restore the pre-transfer position of the company.

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