The IBBI regulations said that the resolution professional will undertake a project-wise technical and cost-to-complete assessment before inviting expressions of interest for such projects. (Representational/File)In a step to address the concerns of homebuyers, the Insolvency and Bankruptcy Board of India (IBBI) has mandated that, where a company has multiple real estate projects, the resolution professional shall place the project-wise completion status before the Committee of Creditors (CoC) so that a decision can be made on whether any project can be kept out of the corporate insolvency resolution process (CIRP).The board said that the project-wise information should include RERA registration details, stage of completion, status of possession and occupancy, and details of completed and incomplete units. “Based on this information, the Committee of Creditors (CoCs) may, with at least 66% voting share, recommend to the Adjudicating Authority the exclusion of any real estate project from CIRP, along with recorded reasons,” said the Board in its new regulations issued on Friday.This enables project-wise treatment of real estate insolvencies, minimising disruption to completed and occupied projects and focusing resolution efforts on projects that genuinely require intervention, said the IBBI.Under the Insolvency and Bankruptcy Code (IBC) framework, which came into effect in 2016, homebuyers have been identified as financial creditors and can initiate insolvency proceedings against defaulting real estate developers. However, over the years, it has also been observed — especially in Delhi-NCR projects — that once a holding company goes into insolvency, it affects even those real estate projects that are nearing completion.The IBBI regulations said that the resolution professional will undertake a project-wise technical and cost-to-complete assessment before inviting expressions of interest for such projects. “The assessment shall cover the physical status of construction, regulatory approvals, sold and unsold inventory, estimated completion costs, funding requirements, timelines and risks affecting completion. The assessment shall form part of the Information Memorandum and be made available to prospective resolution applicants,” said the board.The regulation said that minutes of CoC meetings shall record the views, concerns and opinions expressed by the representatives of homebuyers. It also said that the monitoring committee constituted for implementation of the resolution plan shall include homebuyers representative, RERA and competent authority.“Participation of homebuyers and regulatory authorities will help identify and address issues relating to approvals, compliance and construction milestones in time, reducing implementation delays and disputes,” said the insolvency board.Story continues below this adThe project-wise, phase-wise or tower-wise timelines for completion and delivery of possession, as applicable, and periodic progress reporting to the monitoring committee shall be specified, said the board.The new regulations also provide flexibility to the CoC in approving requests from homebuyers for handover of possession of their plots, apartments or buildings and facilitation of registration. The CoC may either approve each request individually or grant an in-principle approval authorising the resolution professional to process all such requests, as and when received, during CIRP. This avoids the need to seek CoC approval afresh for each request and is expected to enable faster delivery of homes to eligible homebuyers.Dheeraj Mishra is a Principal Correspondent with the Business Bureau of The Indian Express. He plays... Read More Tags:Insolvency