Govt mulls quicker resolution of builders’ insolvency
Real Estate

Govt mulls quicker resolution of builders’ insolvency

According to those with knowledge of the situation, India intends to implement new regulations for managing bankruptcy cases involving real estate that will benefit homebuyers even while their builders shut down.

The persons, who asked to remain anonymous since the material is private, stated that the planned amendment to the country's Insolvency and Bankruptcy Code will allow resolution of the cases on a project-by-project basis. According to them, this will allow finished flats to be delivered to homebuyers even as the developer's bankruptcy procedure is ongoing.

The corporate affairs ministry's spokesperson declined to comment.
Inderjit Singh Rao, the minister of state for corporate affairs, had informed the MPs in August that as of June this year, 436 of the 1,999 cases of corporate insolvency still outstanding were in the real estate industry. A unique framework is required to address the intricacies of the real estate sector because the IBC had little success in timely resolving such issues.

They added that the government also intended to streamline pre-packaged resolution plans, create flexible strategies for treating operational and non-viable assets independently, and develop a central platform for case registration in order to speed up resolutions.

According to those with knowledge of the situation, India intends to implement new regulations for managing bankruptcy cases involving real estate that will benefit homebuyers even while their builders shut down. The persons, who asked to remain anonymous since the material is private, stated that the planned amendment to the country's Insolvency and Bankruptcy Code will allow resolution of the cases on a project-by-project basis. According to them, this will allow finished flats to be delivered to homebuyers even as the developer's bankruptcy procedure is ongoing. The corporate affairs ministry's spokesperson declined to comment. Inderjit Singh Rao, the minister of state for corporate affairs, had informed the MPs in August that as of June this year, 436 of the 1,999 cases of corporate insolvency still outstanding were in the real estate industry. A unique framework is required to address the intricacies of the real estate sector because the IBC had little success in timely resolving such issues. They added that the government also intended to streamline pre-packaged resolution plans, create flexible strategies for treating operational and non-viable assets independently, and develop a central platform for case registration in order to speed up resolutions.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Vedanta Metal Bazaar Expands to Global Markets

Vedanta Aluminium has expanded its digital e-commerce platform, Vedanta Metal Bazaar, to international markets, enabling overseas customers to order and purchase aluminium products online.The platform will now be available to buyers across Asia, Europe, Africa and the Americas, providing a digital gateway for export transactions with 24x7 access.In FY26, Vedanta Metal Bazaar processed transactions worth nearly $4.1 billion, or over Rs 380 billion, and fulfilled more than 23,000 orders. The platform is also used regularly by more than 550 MSMEs in India alongside large OEM customers.The export ..

Next Story
Infrastructure Urban

Ramky Infrastructure Q1 FY27 Revenue Rises 24.3%

Ramky Infrastructure Limited reported a 24.3% year-on-year increase in consolidated revenue from operations to Rs 471.2 crore for Q1 FY27, compared with Rs 3.79 billion in the corresponding quarter of FY26.Standalone revenue from operations rose 27.5% YoY to Rs 4.51 billion from Rs 3.54 billion, while total standalone income increased 35% to Rs 5.32 billion.Consolidated profit before tax stood at Rs 540.9 million during the quarter. The company highlighted a sharp sequential improvement compared with a pre-exceptional loss of Rs 190.1 million in Q4 FY26.Two of the three projects awarded during..

Next Story
Technology

LTTS Launches AgenticIQ AI Platform for Engineering

L&T Technology Services (LTTS) has launched AgenticIQ, an end-to-end agentic AI platform designed for engineering and manufacturing organisations.The platform is aimed at helping enterprises move beyond isolated AI pilots by enabling autonomous, multi-agent workflows across engineering, product development, manufacturing, industrial operations and customer experience.AgenticIQ is built on LTTS’ Engineering Intelligence portfolio and converts existing engineering capabilities into specialised, reusable AI agents. Its planning-first architecture is embedded into engineering and production ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement