IBBI Launches Revised LIQ Forms for Liquidation Process [Read Circular]

The Insolvency and Bankruptcy Board of India ( IBBI ) has launched revised LIQ forms for the liquidation process, aiming to make compliance easier for Insolvency Professionals (IPs).

The new forms were notified through a circular dated 5 January 2026. These changes follow recent amendments to the IBBI (Liquidation Process) Regulations, 2016. Under the amended rules, IPs are now required to file liquidation-related information only through electronic forms prescribed by IBBI.

According to the regulator, the revised forms are designed to reduce duplicate reporting, simplify data entry, and save time for liquidators. Many details will now be auto-filled from earlier filings available on the IBBI portal.

Four forms for entire liquidation process

IBBI has introduced four revised forms, covering the liquidation process from start to finish.

• LIQ-1 will capture details from liquidation commencement till public announcement
• LIQ-2 is a quarterly progress report covering valuation, asset sale, receipts and payments, PUFE matters, and SCC meetings
• LIQ-3 applies when the liquidator files application for dissolution or closure
• LIQ-4 is to be filed after the Adjudicating Authority passes the dissolution or closure order

Each form has a clear timeline, mostly linked to the 10th day of the following month.

Old forms discontinued from January 2026

IBBI has clarified that all earlier liquidation forms stand discontinued from 1 January 2026. From this date onwards, only the revised LIQ forms can be used.

Most forms are already available on the IBBI website but LIQ-2 will be enabled from 1 February 2026, as it applies to quarterly filings.

No penalty in initial quarter

To help IPs adjust to the new system, the Board has announced that no penalty will be levied for delayed filing during January to March 2026. This is a transition period for learning and resolving technical issues.

IBBI has also introduced a form modification facility, allowing IPs to correct mistakes in already filed forms using OTP-based verification.

Digital filing made mandatory

All forms must be filed on the IBBI electronic platform using DSC or e-sign. The liquidator who is in office as on the relevant date will be responsible for filing.

IBBI has warned that failure to file forms or submission of incorrect information may attract regulatory action under the Insolvency and Bankruptcy Code.

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