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IBC

Undervalued Transaction

A transaction where the corporate debtor transfers an asset for significantly less than its fair market value within 2 years (related party) or 1 year (others) before CIRP commencement. Reversible under Section 45 of IBC.

Last updated: 17 May 2026

Frequently Asked Questions

What is Undervalued Transaction?

A transaction where the corporate debtor transfers an asset for significantly less than its fair market value within 2 years (related party) or 1 year (others) before CIRP commencement. Reversible under Section 45 of IBC.

What is the significance of Undervalued Transaction under IBC?

Undervalued Transaction is significant under IBC because A transaction where the corporate debtor transfers an asset for significantly less than its fair market value within 2 years (related party) or 1 year (others) before CIRP commencement. Reversible under Section 45 of IBC.

Who does Undervalued Transaction apply to?

Undervalued Transaction under IBC applies to companies, professionals, and individuals involved in IBC-related compliance and regulatory matters in India. Specifically: A transaction where the corporate debtor transfers an asset for significantly less than its fair market value within 2 years (related party) or 1 year...

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