IBC Under Scanner: Supreme Court Flags Asset Undervaluation and Insider Buybacks in Insolvency Process
The Insolvency and Bankruptcy Code, 2016 (IBC), once hailed as a transformative reform for resolving corporate distress in India, has come under sharp judicial scrutiny. During the hearing of a Public Interest Litigation (PIL) concerning alleged large-scale bank fraud by companies of the Anil Dhirubhai Ambani Group (ADAG), the Supreme Court raised serious concerns regarding the systemic misuse of the IBC framework, particularly in relation to asset undervaluation and insider-controlled resolution processes.
