IBBI New Rules Seek to Keep Completed Real Estate Projects Out of Insolvency
· Business · Indian Express, LiveMint
The Insolvency and Bankruptcy Board of India has introduced new regulations allowing completed real estate projects to be excluded from corporate insolvency resolution proceedings. Under the rules, resolution professionals must conduct a project-wise technical and cost-to-complete assessment before inviting expressions of interest. Committees of creditors can then recommend excluding specific projects to the Adjudicating Authority with at least a 66% voting share. The board states that this project-wise approach minimises disruption to completed and occupied properties when a holding company faces insolvency. Homebuyers in Delhi-NCR and other regions have frequently seen nearly finished developments stalled due to parent-company bankruptcy proceedings.
Why it matters
Homebuyers in completed or near-completed real estate projects will no longer face unnecessary legal delays or possession hurdles when a developer's holding company undergoes insolvency proceedings.
Read the original report — Indian Express
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