Dedicated locality research platform
Enter your email address and you will receive
a link to reset your password
The central government has proposed several amendments to the current insolvency law regime in a bid to strengthen and quicken the entire process. The Insolvency and Bankruptcy Code (IBC) came into effect in 2016 and has since then been amended numerous times to accommodate the changing needs. It provides for a market-linked and time-bound resolution of stressed assets. Some of the suggestions include expanding the existing framework and developing an electronic platform to reduce the need for human intervention.
A notice was released by the ministry of corporate affairs discussing the changes suggested by the government. Amendments forwarded pertain to the admission of corporate insolvency resolution process (CIRP) applications, streamlining processes, and the role of service providers under the Code. A suggestion has been made to create an e-platform to undertake tasks such as filing of applications with the Adjudicating Authority (AA), delivery of notices, storge of records of the corporate debtors (CD), etc. The ministry has also proposed changes to the fast-track corporate insolvency resolution process (FIRP) to allow financial creditors to allow informal or out-of-court resolution plans and involve the Adjudicating Authority only for its final approval or moratorium if needed.
The ministry of corporate affairs also made suggestions pertaining to corporate debtors who are promoters of real estate projects. For applications filed to initiate the CRIP process of a CD who is a promoter of a real estate project and who’s defaults pertain to one or more of its real estate projects, a suggestion has been made the AA shall at its own discretion admit the case but apply the CIRP provisions only to those real estate projects which have defaulted. Thus, allowing unconcerned real estate projects to continue as per status quo.
Other suggestions made in this regard are to enable the Resolution Professional (RP) to transfer ownership and possession of the plot, apartment or building to the allottees with the consent of the Committee of Creditors (CoC) and to allow allottees of a completed unit to request for ownership and possession of a completed unit during a CIRP or a project-specific resolution process. Further, they have recommended that the CD can propose that an IRP be changed in which case a new IRP should be appointed by the AA on the recommendation of the IBBI.
With these recommendations, the government hopes to take the fast-track CIRP outside the judicial process and quicken the disposal of the CIRP. By ensuring the AA plays a limited role in approving the final plan, the government believes the interests of the stakeholders and others are duly protected.
Propscience is India’s dedicated property news portal. We cover the latest events, news, trends, deals, new launches and more.
All our services and tools are completely free of cost and available 24X7!
We use cookies to give you the best possible service while using our website, please click accept and carry on browsing if you're happy with this. For more information see our Privacy Policy.
Okay, Got it!This disclaimer ("Disclaimer") is applicable to the entire Site. Upon entering the Site it is recommended that you immediately read the Terms and Conditions and Privacy Policy listed therein. Your continued usage of this Site will indicate your unconditional acceptance of the said Terms and Conditions and Privacy Policy. You hereby agree that Propscience reserves the right to modify at any time, the Terms and Conditions and Privacy Policy governing this Site without prior notification. Your usage of the Site implies that you will be bound by any such modification. You agree and acknowledge that it is your responsibility to periodically visit the Site and stay updated with the Terms and Conditions and Privacy Policy of the Website.
The information contained in this Site has been provided by Propscience for information purposes only. This information does not constitute legal, professional or commercial advice. Communication, content and material within the Site may include photographs and conceptual representations of projects under development. All computer-generated images shown on the Site are only indicative of actual designs and are sourced from third party sites.
The information on this Site may contain certain technical inaccuracies and typographical errors. Any errors or omissions brought to the attention of Propscience will be corrected as soon as possible. The content of this Site is being constantly modified to meet the terms, stipulations and recommendations of the Real Estate Regulation Act, 2016 ("RERA") and rules made thereunder and may vary from the content available as of date. All content may be updated from time to time and may at times be out of date. Propscience accepts no responsibility for keeping the information in this website up to date or any liability whatsoever for any failure to do so.
While every care has been taken to ensure that the content is useful, reliable and accurate, all content and information on the Site is provided on an "as is" and "as available" basis. Propscience does not accept any responsibility or liability with regard to the content, accuracy, legality and reliability of the information provided herein, or, for any loss or damage caused arising directly or indirectly in connection with reliance on the use of such information. No information given under this Site creates a warranty or expands the scope of any warranty that cannot be disclaimed under applicable law.
This Site provides links to other websites owned by third parties. Any reference or mention to third party websites, projects or services is for purely informational purposes only. This information does not constitute either an endorsement or a recommendation. Propscience accepts no responsibility for the content, reliability and information provided on these third-party websites. Propscience will not be held liable for any personal information of data collected by these third parties or for any virus or destructive properties that may be present on these third-party sites.
Your use of the Site is solely at your own risk. You agree and acknowledge that you are solely responsible for any action you take based upon this content and that Propscience is not liable for the same. All details regarding a project/property provided on this Site are updated on the basis of information available from the respective developers/owners/promoters. All such information will not be construed as an advertisement. To find out more about a project / development, please register/contact us to visit the site you are interested in. All decisions taken by you in this regard will be taken independently and Propscience will not be liable for any such loss in connection with the same. This Site is for guidance only. Your use of this Site - including any suggestions set out in the Site and or any use of the resources available on this Site, do not create any professional - client relationship between you and Propscience. Propscience cannot accept you as a client until certain formalities and requirements are met.
We use cookies to give you the best possible service while using our website, please accept it and continue browsing if you're happy with this. For more information see our Privacy Policy