IBBI Panel Recommends Project-Based Insolvency for Real Estate
A panel formed by the insolvency regulator has recommended that bankruptcy proceedings focus solely on distressed projects of a real estate developer, rather than encompassing the entire company. This approach aims to allow solvent or unrelated ventures within the same developer to continue operating, benefiting many homebuyers involved in stable projects while hastening the resolution process for stressed ones. The panel stated that proceedings under the Insolvency and Bankruptcy Code (IBC) should typically be initiated on a project-by-project basis, treating each as an independent economic unit. This recommendation comes from the panel established by the Insolvency and Bankruptcy Board of…