For years, the phrase Insolvency and Bankruptcy Code (IBC) has sent shivers down the spines of Indian homebuyers. Historically, if a real estate developer failed to pay back a loan or hit a financial dead end on a single project, the entire company could be dragged into bankruptcy court. This all-or-nothing approach often felt like burning down the whole forest just to get rid of one rotting tree.
However, a new set of recommendations from an Insolvency and Bankruptcy Board of India (IBBI) panel is set to change the narrative. The goal is simple: stop punishing buyers of successful projects for the mistakes made in failing ones.
The Scale of the Problem: Why This Intervention Was Necessary
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