New IBBI regulations prioritise project completion & buyer protection.
India’s insolvency regulator mandates independent assessments to ensure homebuyers receive their properties on time.
India’s insolvency regulator recently updated real estate resolution rules. These changes prioritise project completion & home delivery for buyers. The Insolvency & Bankruptcy Board of India introduced these amendments on Friday. As a result, the regulator now requires independent assessments of construction status.
These experts must evaluate outstanding approvals & funding needs. They must also provide realistic timelines for finishing the projects. Creditors holding a 66% voting share may recommend excluding specific projects. Therefore, the resolution professional seeks the authority’s final approval.
The changes follow recommendations from the Jayanti Prasad committee. This panel proposed several measures to better protect homebuyers. Current data shows over 221 ongoing real estate insolvencies. However, these cases affect more than 100,000 homebuyers nationwide.
Resolution plans must now detail how they will handle buyer claims. They must also specify possession timelines for each tower. Creditors may now grant in-principle approval for property registrations. This simplifies the process by avoiding individual decisions for buyers.
Homebuyers will also gain representation on monitoring committees. This allows them to oversee the implementation of resolution plans. The regulator aims to improve transparency throughout the insolvency process. The rules also ensure compliance with RERA fund-utilisation standards.
(Source: ET Realty)
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