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IBBI seeks notes on bidders' compliance with insolvency law's Section 29A

20 Nov 2025 Evaluate

With aim to ensure the integrity of a resolution process, the Insolvency and Bankruptcy Board of India (IBBI) has asked resolution professionals to submit detailed notes on bidders' compliance with the insolvency law's Section 29A that bars unscrupulous entities from participating in the process. The detailed notes have to be provided to the Committee of Creditors (CoC) when the resolution plans are considered.

The IBBI has been working on ways to boost the ecosystem under the Insolvency and Bankruptcy Code (IBC) that provides for a market-linked and time-bound resolution of stressed assets. Further, it has emphasized the importance of due diligence with respect to section 29A compliance in order to safeguards the integrity of the process. This ensures that only credible resolution applicants participate in the process and also reduces the risk of legal challenges post-approval of resolution plan.

Section 29A lays down the ineligibility criteria for resolution applicants, including barring promoters of companies undergoing resolution process from the bidding process. The resolution professionals and prospective resolution applications are required to comply with various requirements under the IBC to ensure a credible process. Among other requirements, an applicant should submit an undertaking with the Expression of Interest confirming they are not ineligible for bidding.

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