IBBI Proposes Changes to Rules for Insolvency Resolution Process

The Insolvency and Bankruptcy Board of India (IBBI) has proposed five broad changes to the rules for the insolvency resolution process for real estate projects. These changes include mandatorily registering projects under the Real Estate Regulatory Authority (RERA), keeping properties in the possession of homebuyers out of the liquidation process, operating separate bank accounts for each project, executing registration/sublease deeds with approval of the Committee of Creditors (CoC), and allowing CoC to examine and invite separate plans for each project. The proposed amendments are expected to provide relief for homebuyers whose investments are stuck in stalled real estate projects. The public has been invited to submit comments on the proposed changes by November 28, 2023.