New Delhi, Jan. 12 -- The central government has accepted all recommendations, barring one, of a Parliamentary select committee of the Lok Sabha led by MP Baijayant Panda on proposed changes to India's bankruptcy law, according to two people aware of the development.

This paves the way for the Insolvency and Bankruptcy Code (Amendments) Bill, 2025-which was introduced in Parliament in the monsoon session by finance and corporate affairs minister Nirmala Sitharaman-to be passed in the upcoming budget session of Parliament, starting 28 January, the people cited above said on condition of anonymity.

The Centre has backed a wide-ranging set of reforms aimed at speeding up resolutions, reducing litigation, and improving outcomes for creditor...