Now, the scrutiny window is being expanded to cover two years of pre-bankruptcy transactions leading up to the filing before the NCLT.
If something looks shady, the NCLT can cancel those transactions and recover assets.
Plus, anyone filing bogus insolvency claims could face fines from ₹1 lakh up to ₹1 crore.
These moves are meant to cut delays, reduce pointless lawsuits, and make sure creditors aren't left hanging.
As Sitharaman put it, the changes should make the whole process more efficient while still holding former promoters accountable even after a company is saved.