+
Study urges legal reforms for efficient real estate IBC cases
Real Estate

Study urges legal reforms for efficient real estate IBC cases

A recent study emphasises the urgent need for legal reforms to improve the efficiency of resolving real estate cases under the Insolvency and Bankruptcy Code (IBC). The current legal framework, according to the study, falls short in addressing the complexities unique to the real estate sector, leading to prolonged litigation and delayed resolutions.

The study points out that real estate projects typically involve a multitude of stakeholders, such as homebuyers, lenders, and developers, each with different and often conflicting interests. This complexity makes the resolution process under the IBC particularly challenging, resulting in lengthy legal proceedings and project delays. To address these issues, the study suggests specific legal reforms.

Among the key recommendations are the creation of specialised tribunals dedicated to handling real estate insolvency cases and amendments to the IBC that prioritise the interests of homebuyers. Enhanced dispute resolution mechanisms are also proposed to make the process more transparent and efficient. These changes aim to ensure fair and timely resolutions that protect the interests of all parties involved.

The study also highlights the importance of recognizing homebuyers as financial creditors under the IBC. This recognition would expedite project completions and safeguard the investments of individual buyers. Additionally, the study calls for better coordination between regulatory bodies and the judiciary to avoid jurisdictional conflicts and streamline case management.

In summary, the study underscores the critical need for targeted legal reforms tailored to the real estate sector within the insolvency framework. Implementing these measures could significantly enhance the resolution of real estate insolvency cases, benefiting stakeholders and contributing to the sector's stability and growth.

A recent study emphasises the urgent need for legal reforms to improve the efficiency of resolving real estate cases under the Insolvency and Bankruptcy Code (IBC). The current legal framework, according to the study, falls short in addressing the complexities unique to the real estate sector, leading to prolonged litigation and delayed resolutions. The study points out that real estate projects typically involve a multitude of stakeholders, such as homebuyers, lenders, and developers, each with different and often conflicting interests. This complexity makes the resolution process under the IBC particularly challenging, resulting in lengthy legal proceedings and project delays. To address these issues, the study suggests specific legal reforms. Among the key recommendations are the creation of specialised tribunals dedicated to handling real estate insolvency cases and amendments to the IBC that prioritise the interests of homebuyers. Enhanced dispute resolution mechanisms are also proposed to make the process more transparent and efficient. These changes aim to ensure fair and timely resolutions that protect the interests of all parties involved. The study also highlights the importance of recognizing homebuyers as financial creditors under the IBC. This recognition would expedite project completions and safeguard the investments of individual buyers. Additionally, the study calls for better coordination between regulatory bodies and the judiciary to avoid jurisdictional conflicts and streamline case management. In summary, the study underscores the critical need for targeted legal reforms tailored to the real estate sector within the insolvency framework. Implementing these measures could significantly enhance the resolution of real estate insolvency cases, benefiting stakeholders and contributing to the sector's stability and growth.

Next Story
Real Estate

MoHUA Sanctions 1.47 Lakh Additional Houses Under PMAY-U 2.0

In a major push towards the Government’s Housing for All mission, the Ministry of Housing and Urban Affairs (MoHUA) has approved 1,46,582 additional pucca houses under Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0) for 14 States/UTs, bringing total sanctions under the revamped scheme to 8.56 lakh.The decision came during the fourth meeting of the Central Sanctioning and Monitoring Committee (CSMC), chaired by Srinivas Katikithala, Secretary, MoHUA, at the Ministry’s Kasturba Gandhi Marg office. Senior officials, State Principal Secretaries, and PMAY-U Mission Directors participated ..

Next Story
Real Estate

Piyush Goyal Inaugurates Expanded ISA Building at Intellectual Property Office

Union Minister of Commerce and Industry, Piyush Goyal, today inaugurated the newly expanded International Searching Authority (ISA) building at the Intellectual Property Office (IPO) in Dwarka, New Delhi, marking a major step forward in India’s intellectual property ecosystem.Addressing the gathering, Goyal highlighted that innovation has been central to India’s heritage for centuries, citing the engineering brilliance of the Konark Temple as a historic example. He emphasised that innovation is not just intellectual property but a symbol of sovereignty, and a key driver in India’s journe..

Next Story
Real Estate

SIEGER Boosts Automation in Mumbai Realty

SIEGER, a leading automation solutions provider, is expanding its advanced manufacturing capabilities to meet the surging demand for precision, high-speed automation in Mumbai’s rapidly growing real estate sector.Operating from a 21,000 m² advanced production hub in Coimbatore—part of a 40,000 m² integrated campus—SIEGER offers complete solutions from design and prototyping to manufacturing and deployment. The fully digitalised facility features CNC machining, QR-coded component tracking, conveyorized powder coating, and a Government of India–certified R&D centre, ensuring unmatc..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?