The Insolvency and Bankruptcy Board of India (IBBI) on November 06, 2023, issued a notification regarding a discussion paper on Real-Estate Related Proposals- CIRP & Liquidation.
The following has been stated: -
•The discussion paper deals with the following issues being faced in the insolvency processes of real-estate projects:
A. Mandatory registration and extension of projects under Real Estate Regulatory Authority (RERA)- Proposal: To expressly state that IRP/ RP must comply with the provision of the RERA Act and regulations framed thereunder. It is proposed to mandate the IRP/ RP to register all real estate projects under RERA or to extend the registration of the real estate project under RERA, wherein the registration is expired or about to expire.
B.Operating a separate bank account for each real estate project and the Proposal made is that in line with the RERA provision for maintaining separate accounts for each project and to ensure transparency in the process, it is proposed that IRP/ RP should operate a separate bank account for each project undergoing CIRP.
C. Execution of registration/sublease deeds with approval of the committee of the creditors (CoC) during the corporate insolvency resolution process (CIRP).
D.CoC to examine and invite separate plans for each project; and
E. Exclusion of property in possession of homebuyers from the liquidation estate.
The detailed notification is given in the document attached below.
