Insolvency and Bankruptcy Board of India (IBBI) issued the Voluntary Liquidation Process (Amendment) Regulations, 2025, effective from January 28, 2025. Key changes include the omission of Regulation 33 and revisions to Regulation 39, mandating the Board to maintain a Corporate Voluntary Liquidation Account with a scheduled bank. Additionally, Regulation 41A introduces electronic filing of forms (VL1 to VL4) for different stages of liquidation, with specified timelines. Liquidators must ensure accurate and timely submissions, with a penalty of ₹500 per form for delays. Non-compliance or inaccurate submissions may result in penalties, including the refusal to renew authorizations. The amendments also modify Form G in Schedule I to capture detailed information on stakeholders entitled to unclaimed dividends or undistributed proceeds, specifying their identification details and tax-related requirements. These changes aim to enhance transparency, accountability, and adherence to the Voluntary Liquidation Process.
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION
New Delhi, the 28th January, 2025
Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Amendment) Regulations, 2025.
F. No. IBBI/2024-25/GN/REG120.—In exercise of the powers conferred by clause (t) of sub-section (1) of section 196 read with section 240 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Insolvency and Bankruptcy Board of India hereby makes the following regulations to further amend the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017, namely: –
1. (1) These Regulations may be called the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Amendment) Regulations, 2025.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 (hereinafter referred to as ‘the principal regulations’), regulation 33 shall be omitted.
3. In the principal regulations, in regulation 39, for sub-regulation (1), the following sub-regulation shall be substituted, namely:-
“(1) The Board shall maintain and operate an account to be called the Corporate Voluntary Liquidation Account with a scheduled bank.”
4. In the principal regulations, after regulation 41, the following regulation shall be inserted, namely: – “41A. Filing of Forms.
(1) The liquidator shall file the Forms, along with the enclosures thereto, on an electronic platform of the Board, as per the timelines stipulated against each Form, in the table below: –
TABLE
| Form No. | Period Covered and Scope | Timeline |
| VL 1 | This includes details of the corporate person, details of the voluntary liquidation process, etc. | On or before the 10th day of the second month after the public announcement. |
| VL 2 | Details of the meetings of contributories with the reasons for delay in the process, details of replacement of liquidator (if any), etc. | On or before the 10th day of the subsequent month, after the meeting of contributories or replacement of liquidator. |
| VL 3 | Details of dissolution application, details of unclaimed proceeds, details of realisation and distribution made to stakeholders, details of pending litigations, detection of fraud or insolvency (if any), etc. |
On or before the 10th day of the subsequent month, after submission of the dissolution application of the corporate person or withdrawal/suspension application for the voluntary liquidation process, to the Adjudicating Authority. |
| VL 4 | Details of order for dissolution: This includes details of the distribution of proceeds, receipts and payments, etc. | On or before the 14th day of passing of the order for dissolution of the corporate person, or withdrawal / suspension of the voluntary liquidation process. |
(2) The liquidator shall ensure that the Forms and its enclosures filed under this regulation are accurate and complete.
(3) The filing of a Form under this regulation after the due date of submission, whether by correction, updation or otherwise, shall be accompanied by a fee of five hundred rupees per Form for each calendar month of delay after the date notified by the Board.
(4) The liquidator shall be liable to any action which the Board may take as deemed fit under the Code or any regulation made thereunder, including refusal to issue or renew Authorisation for Assignment, for –
(i) failure to file a Form along with requisite information and records;
(ii) inaccurate or incomplete information or records filed in or along with a Form;
(iii) delay in filing the Form.”
5. In the principal regulations, in Schedule I, in Form G, for table B, the following table shall be substituted, namely:-
“B. Details of Stakeholders entitled to Unclaimed Dividends or Undistributed Proceeds
Sl. No. |
Name of stakeholder entitled to
|
Address, phone number and email address of the stakeholder |
Identification Number of the stakeholder (PAN, CIN, etc.) (Please attach Identifi-cation proof.) |
Amount due to the stakeholder (Rs.) |
Nature of Amount due |
Applicable section of
|
Amount of tax to be deducted(Rs.) |
Reason for unclaimed dividends or undistributed proceeds |
Remarks |
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
(7) |
(8) |
(9) |
(10) |
1 |
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2 |
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3 |
RAVI MITAL, Chairperson
[ADVT.-III/4/Exty./938/2024-25]
Note: The Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 were published vide notification No. IBBI/2016-17/GN/REG010 on 31st March, 2017 in the Gazette of India, Extraordinary, Part III, Section 4, No. 130 dated 31st March, 2017 and were last amended by Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Amendment) Regulations, 2024 vide notification No. IBBI/2023-24/GN/REG109 dated the 31st January , 2024 in the Gazette of India, Extraordinary, Part III, Section 4, vide No. 73 on 31st January, 2024.
