The government would probably change the insolvency law to permit “customised resolutions” of insolvent residential real estate projects to assure prompt delivery of flats to homebuyers in troubled housing projects, according to a media report by the Economic Times (ET).
The proposed revisions to the Insolvency and Bankruptcy Code (IBC) would permit resolution depending on the nature of the projects rather than imposing a rigid framework on the whole real estate sector, people familiar with the matter said to ET.
According to them, the action will aid in halting the value erosion of distressed housing projects. It is one of a number of adjustments the government is preparing to strengthen the corporate insolvency resolution procedur…
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