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Allotted Flat Won't Be Part Of Liquidation Process: IBBI Most real estate projects have not faced that situation yet. 🔖NEW DELHI: New rules of Insolvency & Bankruptcy Board of India (IBBI) provide for exemption of allotted property from liquidation process, providing much-needed relief to thousands of home buyers, whose real estate projects are caught in the insolvency resolution process for years with fear of liquidation dangling over their head. 🔖"Wherever the corporate debtor has given possession to an allottee in a real estate project, such asset shall not form a part of the liquidation estate of the corporate debtor," IBBI said. 🔖This means that homebuyers, who have got possession of their flats, can stay in them even if the project goes into liquidation as their property will be outside the ambit of the exercise. Most real estate projects have not faced that situation yet. 🔖The change in rule will mean that the liquidator can reduce the reserve price by up to 25% for assets, with existing valuation of the corporate insolvency resolution process (CIRP) once, provided it is approved by the Stakeholders' Consultation Committee (SCC). For assets where fresh valuation is conducted during liquidation, the reserve price can be cut by up to 10% in subsequent auctions, with SCC's approval. 🔖Besides, liquidators have been given the power to sell assets of a company through private sale but through prior consultation with SCC. The steps are part of an exercise by IBBI to improve the liquidation process. Separately, on Wednesday, an expert panel recommended phased introduction of a voluntary mediation as a dispute resolution mechanism under the Insolvency & Bankruptcy Code. 🔖The committee has proposed the establishment of a dedicated and specialised NCLT-annexed insolvency mediation cell with an independent secretariat to administer, oversee, and manage the conduct of insolvency mediations under the law. artcile credit-times of india #cs #csexecutive #csprofessional #ca #caintermediate #cafinalist #cafinal #cma #cmainter #icsi #icai #insolvencyandbankruptcy

Home buyers appeal insolvency plea against Ansal Hi-tech get Rejected NEW DELHI: On Monday, NCLAT rejected a plea for insolvency against Ansal Hi-tech Township Ltd by homebuyers of a Greater Noida project. The appellate tribunal upheld their January 2023 decision, stating that the allottees, from different projects, weren't eligible to file the case. The NCLT's order was contested before the NCLAT, as the buyers contended that the contract was signed well in advance of the Real Estate Regulation and Development Act (RERA) and referred to Sushant Megapolis" as a single, comprehensive Project. They also added information about the structure, build, and location of the project. NCLAT emphasized that according to the RERA Act, all real estate projects must register with the Real Estate Regulatory Authority. Additionally, if a project is developed in stages, each stage requires a separate registration. Here are the agreements from Ansal Hi-tech Township: 1. Plot Allottee Agreement 2. Builtup Unit Allottee Agreement 3. Apartment Allottee Agreement NCLAT stated that to file for bankruptcy under the Insolvency & Bankruptcy Code for a real estate project, flat allottees (financial creditors) must jointly file a plea with either 100 other allottees from the same project or 10% of all allottees, whichever is fewer. Additionally, the township has real estate projects of various characters. Their Building Sanctioned Plans are different, and they have independent terms. Source: http://surl.li/slocm Follow: AAA Groups #aaagroups #insolvency #legal #valuation #fraud #nclt #ncalt #lawyer #bankruptcy

The recent notification by the Insolvency & Bankruptcy Board of India (IBBI) is primarily intended to facilitate the resolution of real estate projects. Out of the total CIRPs initiated to date, the real estate sector has 21% of the share in the pool and further study of data would indicate that the proportion of real estate companies heading for liquidation(18%) is proportionately more than what could be resolved(15%) under the Code. This signified the utter need to bring synchronization of the IBC process with the real estate sector Our Partner - Insolvency & Restructuring Practice, Anjali Jain shares her views with businessline : https://lnkd.in/ga9cC-s2 #realestate #thehindu #insolvency #bankruptcy #insolvencyandbankruptcy #areness #arenesslaw #legaladvice #legalinsights #ibbi #realestatecompany #companylaw #regulatorycompliance #transparency #finance 

Home buyers appeal insolvency plea against Ansal Hi-tech get Rejected NEW DELHI: On Monday, NCLAT rejected a plea for insolvency against Ansal Hi-tech Township Ltd by homebuyers of a Greater Noida project. The appellate tribunal upheld their January 2023 decision, stating that the allottees, from different projects, weren't eligible to file the case. The NCLT's order was contested before the NCLAT, as the buyers contended that the contract was signed well in advance of the Real Estate Regulation and Development Act (RERA) and referred to Sushant Megapolis" as a single, comprehensive Project. They also added information about the structure, build, and location of the project. NCLAT emphasized that according to the RERA Act, all real estate projects must register with the Real Estate Regulatory Authority. Additionally, if a project is developed in stages, each stage requires a separate registration. Here are the agreements from Ansal Hi-tech Township: 1. Plot Allottee Agreement 2. Builtup Unit Allottee Agreement 3. Apartment Allottee Agreement NCLAT stated that to file for bankruptcy under the Insolvency & Bankruptcy Code for a real estate project, flat allottees (financial creditors) must jointly file a plea with either 100 other allottees from the same project or 10% of all allottees, whichever is fewer. Additionally, the township has real estate projects of various characters. Their Building Sanctioned Plans are different, and they have independent terms. Source: http://surl.li/slocm Follow: AAA Insolvency Professionals LLP #aaainsolvency #insolvency #legal #valuation #fraud #nclt #ncalt #lawyers #bankruptcy 

Home buyers appeal insolvency plea against Ansal Hi-tech get Rejected NEW DELHI: On Monday, NCLAT rejected a plea for insolvency against Ansal Hi-tech Township Ltd by homebuyers of a Greater Noida project. The appellate tribunal upheld their January 2023 decision, stating that the allottees, from different projects, weren't eligible to file the case. The NCLT's order was contested before the NCLAT, as the buyers contended that the contract was signed well in advance of the Real Estate Regulation and Development Act (RERA) and referred to Sushant Megapolis" as a single, comprehensive Project. They also added information about the structure, build, and location of the project. NCLAT emphasized that according to the RERA Act, all real estate projects must register with the Real Estate Regulatory Authority. Additionally, if a project is developed in stages, each stage requires a separate registration. Here are the agreements from Ansal Hi-tech Township: 1. Plot Allottee Agreement 2. Builtup Unit Allottee Agreement 3. Apartment Allottee Agreement NCLAT stated that to file for bankruptcy under the Insolvency & Bankruptcy Code for a real estate project, flat allottees (financial creditors) must jointly file a plea with either 100 other allottees from the same project or 10% of all allottees, whichever is fewer. Additionally, the township has real estate projects of various characters. Their Building Sanctioned Plans are different, and they have independent terms. Source: http://surl.li/slocm Follow: AAA Legal #aaalegal #insolvency #legal #valuation #fraud #nclt #ncalt #lawyer #bankruptcy 

𝐄𝐧𝐡𝐚𝐧𝐜𝐢𝐧𝐠 𝐂𝐫𝐞𝐝𝐢𝐭𝐨𝐫 𝐑𝐞𝐩𝐫𝐞𝐬𝐞𝐧𝐭𝐚𝐭𝐢𝐨𝐧: 𝐈𝐁𝐁𝐈 𝐀𝐦𝐞𝐧𝐝𝐬 𝐈𝐧𝐬𝐨𝐥𝐯𝐞𝐧𝐜𝐲 𝐑𝐮𝐥𝐞𝐬 The Insolvency and Bankruptcy Board of India (IBBI) introduced significant amendments to the Insolvency Resolution Process for Corporate Persons, aiming to strengthen creditor representation in insolvency proceedings. o  The regulations allow for the appointment of an interim representative for a class of creditors while the application for a permanent authorized representative is pending approval from the adjudicating authority. o  The interim representative will possess the same rights and responsibilities as an authorized representative, particularly in committee of creditors meetings. o  This amendment is particularly beneficial for large groups of creditors, such as homebuyers, who often encounter delays and complexities during insolvency processes. 𝐖𝐡𝐲 𝐈𝐭 𝐌𝐚𝐭𝐭𝐞𝐫𝐬: ·        By ensuring that creditor groups have representation even during the interim period, the amendment enhances their voice in the decision-making process. ·        This change is designed to prevent delays and complications in the insolvency resolution process, promoting greater efficiency. ·        Ensuring that large classes of creditors are represented helps maintain the integrity of the insolvency framework and promotes equitable outcomes. ·        These proactive measures by the IBBI reinforce the effectiveness of the Insolvency and Bankruptcy Code, making it more responsive to the needs of all stakeholders. Let’s discuss how these changes may affect your approach to insolvency matters! #IBBI #Insolvency #Bankruptcy #CorporateLaw #CreditorRights #LegalUpdate #India #WithLaw #WithLawPeople #learnWithLaw #WLConsultech https://lnkd.in/dX-usJsf Disclaimer: The Content in this post is for informational purposes only derived from references and does not constitute any professional advice. We do not claim ownership of any data or Information referenced.

Real Estate Developers Applaud IBBI Amendments, Anticipate Faster Resolutions 🏗 🏙 Recent amendments to the insolvency law by the Insolvency and Bankruptcy Board of India (IBBI) have garnered praise from real estate developers. The regulatory changes allow for a project-wise insolvency and liquidation process in the real estate sector, aiming to expedite resolutions and offer relief to various stakeholders. #bankruptcy To read the full article please follow the link👇 https://lnkd.in/g5UsP_6B For more updates please follow KaroStartup

IBBI Releases Discussion Paper On Real Estate Issues, Suggests Inclusion Of Land Authorities In CoC Meetings On 7th November 2024, the Insolvency and Bankruptcy Board of India (IBBI) has released a discussion paper on the issues related with the Real Estate with seven proposals. This discussion paper is based on findings and recommendations from a recent study group by the Indian Institute of Insolvency Professionals of ICAI (IIIPI) that focused on improving real estate resolutions under IBC and coordination with RERA. It also includes issues and concerns raised during recent consultations with resolution applicants, Insolvency Professionals and other key stakeholders in the insolvency process. Proposed Inclusion of Land Authorities in Committee of Creditors (CoC) Meetings In corporate insolvency resolution processes (CIRP) involving real estate companies land authorities are crucial but currently they not represented in the Committee of Creditors (CoC). Financial creditors are included in the CoC but land authorities who are usually operational creditors are not. To address this IBBI has proposed inclusion of competent authorities as invitees to CoC meetings for real estate companies without voting rights The proposal suggests adding a sub-regulation to Regulation 18 requiring the resolution professional to invite competent authorities as defined in the Real Estate Regulation Act, 2016 to attend CoC meetings as special invitees without voting rights.

In a recent amendment done by Insolvency & Bankruptcy Board of India (IBBI), Our Partner - Insolvency & Restructuring Practice, Anjali Jain shares her insights with the Financial Express (India) in a story, "Requirement of separate bank account for each project would help in facilitation of project wise resolution and to supplement this, the RP is further empowered to invite resolution plan for each real estate project as resolution of individual projects would pave the way for better price discovery, competitive bidding and early resolution in comparison to group project resolution. Various projects of the same corporate debtor have different stages of completion and even have varied requirements of funds and the existing rules were insufficient to accommodate the diversity of such project specific needs": https://lnkd.in/g6qamrDv #realestate #thehindu #insolvency #bankruptcy #insolvencyandbankruptcy #areness #arenesslaw #legaladvice #legalinsights #ibbi #realestatecompany #companylaw #regulatorycompliance #transparency #finance

IBBI Releases Discussion Paper On Real Estate Issues, Suggests Inclusion Of Land Authorities In CoC Meetings On 7th November 2024, the Insolvency and Bankruptcy Board of India (IBBI) has released a discussion paper on the issues related with the Real Estate with seven proposals. This discussion paper is based on findings and recommendations from a recent study group by the Indian Institute of Insolvency Professionals of ICAI (IIIPI) that focused on improving real estate resolutions under IBC and coordination with RERA. It also includes issues and concerns raised during recent consultations with resolution applicants, Insolvency Professionals and other key stakeholders in the insolvency process. Proposed Inclusion of Land Authorities in Committee of Creditors (CoC) Meetings In corporate insolvency resolution processes (CIRP) involving real estate companies land authorities are crucial but currently they not represented in the Committee of Creditors (CoC). Financial creditors are included in the CoC but land authorities who are usually operational creditors are not. To address this IBBI has proposed inclusion of competent authorities as invitees to CoC meetings for real estate companies without voting rights The proposal suggests adding a sub-regulation to Regulation 18 requiring the resolution professional to invite competent authorities as defined in the Real Estate Regulation Act, 2016 to attend CoC meetings as special invitees without voting rights.