Realty insolvency reforms to push for streamlined solutions for homebuyers, lenders
Insolvency and Bankruptcy Board of India’s (IBBI) proposed reforms to streamline the insolvency process for real estate companies. With the proposed changes, the biggest pain point for homebuyers—delayed possession—is slated to be taken care of.
The amendments, aimed at addressing long-standing challenges under the Insolvency and Bankruptcy Code (IBC), promise timely possession, fairer claim valuation and increased transparency.
One of the key proposals empowers the insolvency professionals to transfer possession or ownership of units to homebuyers who have met their financial commitments, provided the committee of creditors (CoC) approves the same.
This could resolve delays that have left numerous buyers stranded in incomplete projects in key property markets of the country.
“The proposed reforms are a balanced attempt to address systemic inefficiencies in the real estate insolvency framework,” said Sudip Mullick, partner, Economic Laws Practice. “By aligning the interests of homebuyers, creditors and developers, these measures lay the groundwork for a more robust, transparent and equitable real estate sector. With effective implementation, these changes could not only provide immediate relief to affected stakeholders but also reinforce long-term confidence in India's real estate market.”
Finance
Startup Fundraising: Essential Tactics for Securing Capital
By — Dr. Anu Khanchandani, Startup Coach with more than 25 years of experience
Web Development
Advanced Java Mastery: Object-Oriented Programming Techniques
By
