Thousands of long-awaiting homebuyers have received good news as they won’t have to wait much longer for their dream homes
The Insolvency and Bankruptcy Board of India (IBBI) has proposed significant changes to provide relief in a discussion paper.
Six crucial changes have been recommended for a more seamless property handover to homebuyers.
According to these changes, homebuyers can now receive their flats without waiting for the completion of the insolvency process, provided they meet all the necessary conditions. Additionally, they can have their properties registered.
The Real Estate Sector’s Share
Out of the cases stuck in the National Company Law Tribunal (NCLT), 21 percent are linked to the real estate sector.
However, their representation in the resolution process is only 15 percent. This includes many high-profile cases that have lingered for years, causing distress to numerous homebuyers nationwide.
IBBI, after consulting various stakeholders and taking recommendations from the Amitabh Kant Committee, has put forward solutions.
As per these recommendations, every resolution professional (RP) must register each project under the Real Estate Regulatory Authority (RERA)
and maintain a separate bank account for each project. RPs can provide possession to homebuyers with the approval of the Committee of Creditors.
Who Stands to Benefit
These suggestions bring significant relief, especially to homebuyers who have paid the full amount for their properties.
In cases where possession has already been granted, registration can proceed after receiving approval from the Committee of Creditors.
If a homebuyer has settled the full amount, the property can be handed over on an “as is, where is” basis.
Additionally, the property currently in the possession of the allottee will not be included in the liquidation estate.
The Insolvency Board also recommends that resolution professionals seek separate resolution plans for each project, as many companies facing insolvency have multiple projects.
