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The IBC (Amendment) Act, 2026: Cosmetic Speed or Deepening the Crony Heist?

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  The IBC (Amendment) Act, 2026: Cosmetic Speed or Deepening the Crony Heist? Posted on 17th April, 2026 (GMT 03:55 hrs) ABSTRACT This report by Once in a Blue Moon Academia indicts the IBC (Amendment) Act, 2026 as a high-speed polish on a structurally flawed regime. While promising faster resolutions and marginal creditor safeguards, it leaves untouched the core contradictions — especially the tension between Section 66 (fraud recovery for creditors) and Section 32A (clean-slate immunity) — that enabled the DHFL heist, where retail depositors lost 75–80% while fraud upside flowed to Piramal. The amendment accelerates crony capture rather than correcting it, turning bankruptcy into a profitable tool for the superrich at the expense of the common people. I. Introduction: A High-Speed Polish on a Structurally Flawed Engine? In the wake of India’s most sweeping overhaul of the Insolvency and Bankruptcy Code since its 2016 inception— the IBC (Amendment) Act, 2026 —whistleblowers l...
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Bankruptcy as Profitable “Bijness”: India’s Grand IBC Heist!

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  Bankruptcy as Profitable “Bijness”: India’s Grand IBC Heist! Posted on 15th April, 2026 (GMT 12:31 hrs) ABSTRACT India’s insolvency regime, culminating in the Insolvency and Bankruptcy Code (IBC, 2016), represents not a rupture but a refinement of a long-standing political economy that protects and reproduces elite accumulation. While the pre-2014 framework (BIFR/SICA/DRT/SARFAESI) enabled overt promoter impunity through delay and fragmentation, the post-2016 IBC has professionalised and sanitised this asymmetry into a time-bound, creditor-driven architecture that systematically socialises losses and privatises gains. Empirical trends—~8,800+ CIRP admissions, ~31–33% recovery rates, ~67% average haircuts, ₹4+ lakh crore realised against far larger claims, and a surge in wilful defaulters to ₹3.83 lakh crore by 2025—reveal a system where public-sector banks, workers, SMEs, and retail investors absorb the bulk of distress while politically connected acquirers consolidate asset...
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