In a significant move aimed at protecting homebuyers, the Insolvency and Bankruptcy Board of India (IBBI) has proposed a major change that would automatically include all allottees in a real estate project in the resolution process, even if they fail to file their claims formally.
This proposal is part of a broader discussion paper titled “Strengthening safeguards and transparency in the CIRP,” released today, which outlines four key reforms to plug procedural gaps in the Corporate Insolvency Resolution Process (CIRP).
Homebuyers to get automatic recognition
Under the current framework, only homebuyers who formally submit their claims to the resolution professional are considered in the Information Memorandum (IM)…