# Parliament panel backs IBC steps, seeks action on fund diversion 2026-08-13T11:58:39+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet A Parliamentary Standing Committee on Finance has backed government steps to strengthen recovery under the Insolvency and Bankruptcy Code (IBC), but has called for urgent action against fund diversion. The committee noted that 1,326 avoidance transaction applications valued at Rs 3.76 lakh crore yielded only about Rs 7,500 crore in recovery, exposing a serious drain on assets meant for lenders. The panel wants the Ministry of Corporate Affairs and the Insolvency and Bankruptcy Board of India (IBBI) to give Resolution Professionals greater powers to investigate diversions and expedite claw-backs. Average resolution time has risen to 853 days against the mandated 330 days, with 30,600 cases pending before 30 NCLT benches. The government cited steps such as a November 2025 IBBI circular on restitution of assets attached under the Prevention of Money Laundering Act. ## Coverage - economictimes.indiatimes.com Tags: fund diversion, IBC, insolvency, NCLT, Parliamentary panel, recovery Canonical: https://indianopinion.org/parliament-panel-backs-ibc-steps-seeks-action-on-fund-diversion/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/parliament-panel-backs-ibc-steps-seeks-action-on-fund-diversion/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.