Credit rating agency ICRA has termed the proposed amendments to the Insolvency and Bankruptcy Code (IBC) encouraging, saying they could help improve recovery rates and reduce resolution timelines. However, it cautioned that long-standing structural challenges in the real estate sector remain largely unaddressed.
ICRA noted that the real estate and construction sector continues to account for the second-highest share of cases under the Corporate Insolvency Resolution Process (CIRP). Despite policy measures aimed at protecting homebuyers and resolving stalled housing projects, the proposed amendments do not include sector-specific reforms. As a result, the agency said the benefits of the changes are likely to accrue mainly to non-real…