IBBI – Real Estate – CIRP & Liquidation – Discussion Paper of 6.11.2023 on proposed key changes to ease the process
IBBI – Real Estate – CIRF & Liquidation – Discussion Paper of 6.11.2023 on proposed key changes to ease the resolution process –
It is said that more than 20% of IR cases in NCLT relate to real estate sector and the resolution is of 15% cases.
It is heartening to know that the IBBI has taken salutary decision to make changes in insolvency resolution process for real estate sector so as to ensure dream of common man to have their own shelter is fulfilled at the earliest and without additional burden.
The discussion paper invites suggestions on four important issues.
Mandatory registration under RERA, Operation of separate bank account for each real estate project, Execution of registration / sub-lease deeds during the CIRP with the approval of Committee of the Creditors and exclusion of property in possession of homebuyers from the liquidation estate.
To my mind, the RP will be able to invite separate RP for each project to simply the process and all the suggestions will avoid delay.
Secondly, exclusion of property in possession of home buyers from liquidation estate will give huge relief since they would have paid full amount and occupied flats pending transfer of rights.
