IBBI amends rules, creditors may get power to remove liquidator under IBC

IBBI wants liquidation timeline reduced

The Insolvency and Bankruptcy Board of India (IBBI) has proposed a slew of changes to the liquidation regulations to iron out the inconsistencies and make the liquidator more accountable under the Insolvency and Bankruptcy Code (IBC).

Under the proposed changes, a committee of creditors (CoC) may act as a stakeholders’ consultation committee (SCC), which is typically set up within 60 days from the date of commencement of liquidation, to monitor the process from the beginning. It is also proposed that creditors can now replace the liquidator, by a majority vote, in case his conduct is not satisfactory.

The SCC works as a