The bankruptcy watchdog on Tuesday proposed a raft of steps, including the exclusion of completed or unaffected housing projects from the rescue process with financial creditors’ approval, as it sought to streamline regulations and expedite insolvency resolution in the real estate sector.
In a discussion paper, the Insolvency and Bankruptcy Board of India (IBBI) also sought to ring-fence project-wise cash flows to curb diversion or misuse of funds. It wants to mandate resolution professionals to keep project-wise books of accounts and ensure all receipts and payments relating to a project are routed through the designated bank account.
It has also proposed to streamline regulations relating to the handing over of possession to home…