LKS Expert Insights’ Post

In a move involving the insolvency proceedings of real estate builders the Insolvency and Bankruptcy Board of India (IBBI) has suggested that the registration of real estate projects can be allowed in insolvency cases involving real estate builders if an Occupancy Certificate (OC) with respect to the said project has been issued by the competent authority. IBBI suggests that the mere initiation of insolvency proceedings should not hinder registration if the project is legally operational and meets compliance requirements. This suggestion aims at creating a balance between protecting creditors' rights on one hand and protecting the interests of the home buyers on the other hand who have invested in purchase of the home from the builder. https://lnkd.in/gRG5afvm #IBBI #Insolvencylaw #RealEstate #IBC #LegalUpdates #LegalInsights #Lawsquare 

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

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

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

In line with the commitment of maintaining a dynamic and responsive regulatory framework that is aligned with the evolving market realities and requirement of stakeholders, the Insolvency and Bankruptcy Board of India (IBBI) has released a discussion paper focused on improving real estate resolutions. The discussion paper by the IBBI highlights practical issues in real estate insolvency and proposes changes to create a more responsive and efficient framework that better addresses the needs of stakeholders in the real estate sector. Read more: https://bit.ly/3O4Jn4Q

Hey folks! 👋 Here are some key updates in the Insolvency and Bankruptcy Code (IBC) The Insolvency and Bankruptcy Board of India (IBBI) is introducing essential changes to enhance the IBC framework: 🔹 Mediation for Operational Creditors IBBI has proposed revised regulations allowing operational creditors to opt for voluntary mediation before starting insolvency proceedings. This aims to ease judicial burden and reduce delays. If mediation fails, a non-settlement report will accompany the insolvency application to expedite the process. Public comments on this proposal are invited until November 24. 🔹 Centralized Auction Platform Starting November 1, 2024, all assets in liquidation cases will be listed on a centralized platform, eBKray, managed by PSB Alliance. This platform addresses issues like information asymmetry and aims to boost recovery rates by providing a transparent, unified view of assets, including detailed asset information, photos, videos, and auction dates. This shift seeks to enhance transparency, increase bidder participation, and maximize returns. 🔹 Interim Representative for Creditors A new amendment to CIRP regulations introduces the concept of an “interim representative” for classes of creditors, such as homebuyers, while the appointment of an authorized representative is pending approval by the NCLT. The interim representative will have the same rights and duties, ensuring effective representation in creditor meetings from the outset of the insolvency process. This move aims to streamline proceedings, reduce delays, and prevent gaps in decision-making during critical stages. . . . . #finance #money #IBBI #IBC #Insolvency #Bankruptcy #CorporateLaw #India #CIRP #Homebuyers #Recovery

🚨The Insolvency & Bankruptcy Board of India (IBBI) proposes a groundbreaking change: buyers could soon gain ownership of properties caught in insolvency! 🏠 https://lnkd.in/g5Mfrauh

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 

Recently, the Insolvency and Bankruptcy Board of India (IBBI) tweaked its regulations to allow the Committee of Creditors (CoC) to invite separate resolution plans for each real-estate project, rather than dragging the whole firm into insolvency proceedings. The regulations further also enable the CoC to establish a monitoring committee for overseeing the implementation of the resolution plan. Discussing this, I shared my views on how these amended regulations could be beneficial for homebuyers and help in controlling unnecessary expenditures of the debtors. Read the full news story here - Financial Express (India) - https://shorturl.at/dgkq1 BW Businessworld - https://shorturl.at/kABFT #ibbi #realestate #realty #ibc #regulations #lawyer #legalinsights

The Insolvency and Bankruptcy Board of India’s (IBBI) discussion paper on real estate addresses key challenges in insolvency proceedings for real estate companies under the Insolvency and Bankruptcy Code (IBC). Proposed solutions include involving land authorities in CoC meetings, mandating IPs to report pre-insolvency land cancellations, allowing homebuyer associations to apply as resolution applicants, standardizing interest rates in claims, adding facilitators for creditor classes, improving transparency in CoC meetings, and enabling possession transfer to allottees during insolvency with CoC approval. Public comments are invited until November 27, 2024. In my view, these are positive steps in the right direction from the IBBI. However, based on experience, real estate insolvencies have been complex, and the real test lies in how these provisions are implemented. Additionally, the issue of securing additional funding for completing stalled projects still remains unresolved under the current insolvency framework. P.S. Thanks for the great response to my last post—so many interactions have helped me connect with a wider community of stressed asset professionals. I’ll continue sharing updates on insolvency and banking laws every Thursday. Follow and like for more insights! #ibbi #ibc #realestate #insolvency #bankruptcy #corporatelaw #india #legalinsights