What is the IBC?India’s Insolvency and Bankruptcy Code (IBC), passed in 2016, is the legal framework governing what happens when a company, including a real estate developer, is unable to pay its debts. The law is administered by the Insolvency and Bankruptcy Board of India (IBBI), and cases are adjudicated by the National Company Law Tribunal (NCLT).In 2018, the government amended the IBC to extend an important protection to homebuyers: anyone who had paid money to book a flat was formally recognized as a “financial creditor.” This meant the builder legally owed that money in the same manner as a bank loan. As a result, homebuyers gained the right to approach the NCLT and initiate insolvency proceedings against a defaulting…
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