NEW DELHI: There is a need for legal and administrative reforms to ensure more efficiency in resolving real estate cases under the insolvency law, according to a study.
In its study, the Indian Institute of Insolvency Professionals of ICAI (IIIPI) has suggested the focus should be on the completion of projects and allotment to home buyers, wherever possible, and added that procedural and co-ordinational issues should not be allowed as a hindrance.
The Insolvency and Bankruptcy Code (IBC) provides for a market-linked and time-bound resolution of stressed assets.
The IIIPI’s study group on ‘Improving Real Estate Resolutions under IBC and Coordination with RERA‘ has flagged some critical gaps in legal as well as practical aspects under IBC and the Real Estate (Regulation and Development) Act (RERA).
In a release, the institute said there is a need for legal and administrative reforms needed for greater efficacy in resolving real estate cases under the IBC.
Among various recommendations, the study has proposed amendments in IBC and regulations to relax the conditions for participation in the Corporate Insolvency Resolution Process (CIRP) by a registered association of allottees.
