INSOLVENCY LAW CHANGES BENEFITS REAL ESTATE
Recent amendments to India's insolvency law allow project-wise resolution in real estate, benefiting stakeholders including developers and homebuyers. The Insolvency and Bankruptcy Board of India's (IBBI) changes enable separate resolution plans for each project, aligning with Real Estate Regulatory Authority (RERA) guidelines. This tailored approach aims for faster resolutions, minimizing value erosion in stressed projects. Mandates include separate bank accounts per project for transparency and CoC oversight. Monthly CoC meetings and cost approval aim for efficient resource use. India's insolvency law changes will enable real estate project resolutions, benefiting stakeholders. The amendments include a significant proposal which enables separate resolution plan for each project within the company. This may necessitate segregation of projects into different companies, either through demerger or business transfer etc. Some of these restructuring may lead to tax impact in the hands of the original company, which will have to be factored in while considering the resolution plan.
Tags : Real Estate Regulatory Authority RERA guidelines value erosion project resolutions business transfer Insolvency and Bankruptcy Board of India