IBBI Aims to Simplify Real Estate Insolvency for Homebuyers
The bankruptcy regulator proposed several measures on Tuesday to streamline regulations and expedite insolvency processes in the real estate sector. This includes allowing the exclusion of completed or unaffected housing projects from the rescue procedure, pending agreement from financial creditors. In its discussion paper, the Insolvency and Bankruptcy Board of India (IBBI) suggested safeguarding project-specific cash flows to prevent fund diversion. It aims to require resolution professionals to maintain project-specific financial records and ensure all transactions are conducted through designated bank accounts. Additional proposals include simplifying the handover process for homebuyers, creating a standardized claim form for real estate allottees,…