Fixing the Gaps: Why India Needs a Group Insolvency Regime
India’s corporate ecosystem is built on interlinked holding companies, subsidiaries, and joint ventures. Yet, under the Insolvency and Bankruptcy Code (IBC), each entity is treated separately, leading to duplication, delays, and value erosion. The idea of Group Insolvency seeks to fix this by allowing coordinated resolutions across related companies. With high-profile collapses like IL&FS, Videocon, and Jet Airways exposing the gaps, the push for a structured group insolvency framework is gaining urgency. This article explores what group insolvency means, why it matters, and the challenges ahead.