Even as the Insolvency and Bankruptcy Board of India (IBBI) is overseeing project-wise insolvency process in the real-estate sector, a facility not available to other sectors, experts say that there is a need for a detailed framework, with statutory backing, to make it more effective.
The Insolvency and Bankruptcy Code (IBC), 2016 would require to be amended for this pupose, they feel.
The government is likely to table the IBC-amendment Bill in Parliament during the winter session, but it may not feature any provision related to project-wise insolvency. Official sources say that since IBBI has already introduced such provisions, through tweaking clause 36A(1) of the CIRP Regulations, there is no requirement as such to bring in an…
