A panel set up by the insolvency regulator has suggested that the bankruptcy proceeding be restricted to only stressed projects of a real estate developer instead of the current practice of extending it to the entire realty company.
Such a move, the panel reckoned, would allow solvent or unrelated realty projects of the same developer to continue operating under existing arrangements. This would benefit a large number of homebuyers in the solvent projects while expediting resolutions of stressed ones.
The proceedings under the Insolvency and Bankruptcy Code (IBC) in real estate should “ordinarily be admitted on a project-wise basis, treating each project as an independent economic unit”, said the panel, set up by the Insolvency and…