Empowering Homebuyers: India's Bold Move in Insolvency Proceedings

India's Insolvency and Bankruptcy Board has amended rules to let distressed homebuyers take possession of properties during ongoing resolution processes. The changes include the introduction of facilitators, land authority involvement, and better monitoring, aimed at improving efficiency and easing delays in real estate insolvency cases.


Devdiscourse News Desk | New Delhi | Updated: 05-02-2025 22:21 IST | Created: 05-02-2025 22:21 IST
Empowering Homebuyers: India's Bold Move in Insolvency Proceedings
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The Insolvency and Bankruptcy Board of India (IBBI) has made significant amendments to its corporate insolvency resolution process rules. These changes now empower distressed homebuyers to take possession of their properties before insolvency processes are fully resolved, thus addressing a major concern in real estate insolvency cases.

The newly notified amendments, effective immediately, were detailed in an official release. They aim to improve the efficiency of real estate project resolutions by appointing facilitators, involving land authorities, and ensuring comprehensive plan monitoring. These steps are expected to significantly reduce delays for homebuyers awaiting stalled project resolutions.

The amendments also introduce a monitoring committee to ensure accountability in the execution of approved plans. This committee, along with facilitating larger creditor classes and easing conditions for homebuyer participation, is expected to bring confidence and clarity to insolvency proceedings.

(With inputs from agencies.)

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