FCC

Expert panel suggests changes in insolvency law

2023-08-23

A team of experts made many recommendations to the Center for reviving dormant real estate projects in the nation, including changes to the insolvency law and the creation of a program giving subsidized interest rates.

On Monday, the report of the committee was delivered to Union Housing and Urban Affairs Minister Hardeep Singh Puri by the 14-member group, which was chaired by former NITI Aayog chief Amitabh Kant.

A program offering subsidized interest rates, similar to MSME, is advised to encourage financial institutions to support stalled projects, according to the Report of the Committee to Examine the Issues Relating to Legacy Stalled Real Estate Projects.

"Such a plan would lessen perceived risk, encourage monetary support, and help projects get finished. A guarantee fund like to MSME may also be taken into consideration by the Central Government. In this regard, a comprehensive plan would be created by the MoHUA (Ministry of Housing and Urban Affairs) and sent to the Ministry of Finance, according to the article.