In a relief to homebuyers, assets in a real estate project that have been handed over to the allottee would be kept out of the liquidation process of the company, the latest amendment to the rules by the Insolvency and Bankruptcy Board of India (IBBI) has said.
The notification dated February 12 said: For the purposes of clause (e) of sub-section (4) of section 36, wherever the corporate debtor has given possession to an allottee in a real estate project, such asset shall not form a part of the liquidation estate of the corporate debtor.
Real estate experts call it a pragmatic approach by the regulator. However, there are many cases where possession has not been given because the property is stuck in insolvency.
This discussion paper, inviting comments from stakeholders, seeks to implement the recommendations made by the committee on stalled real estate projects chaired by Amitabh Kant. This stems from the logistical impediments and shortcomings of the statutory framework faced by the insolvency processes of real estate companies, said legal experts.
India Business News: Real estate sector on a reported basis accounted for more than 50% of the total realizations under IBC. However subsequent to release of data by IBBI,
Share of real estate in recoveries under IBC rises to 18 8%: Report financialexpress.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from financialexpress.com Daily Mail and Mail on Sunday newspapers.
Real Estate Builders Insolvency: With a view to further streamline the corporate insolvency resolution (CIR) process, the Ministry of Corporate Affairs has invited comments on changes being considered to the Insolvency & Bankruptcy Code, 2016.