Allow registration in insolvency cases if OC issued: IBBI | India News – Times of India

NEW DELHI: The Insolvency & Bankruptcy Board of India has proposed that authorities allow registration of properties owned by real estate companies facing insolvency measures – a move that will benefit a large number of homebuyers who have taken possession of apartments or houses for which occupancy or completion certificates have been issued. issued.
It has cited two judgments – one of the Supreme Court and another of NCLAT (National Company Law Appellate Tribunal) – to make a case for transfer of ownership during the resolution process, provided the dues are cleared and the committee of creditors have approved it.
Furthermore, it has suggested in a consultation paper that units to which ownership has been transferred should be kept out of insolvency proceedings, apart from transferring ownership on an “as is where is” basis.

Bidding on foreclosure-affected real estate units could become easier
In several housing projects, authorities have been reluctant to register properties, creating uncertainty among home buyers, who are investing their lifelong savings.
In addition, the discussion paper supports homebuyers wishing to bid on insolvency-affected real estate projects to waive eligibility criteria, earnest money deposit and performance assurance requirements for associations or groups representing 10% or 100 allottees (whichever is higher). The clause has been proposed to remove any ambiguity regarding the powers of the creditors’ committee to relax eligibility standards.
“The suggestions have been made to ease the process,” an IBBI official said.
In the same vein, the Insolvency & Bankruptcy Board of India has proposed regulatory changes that would allow land-owning authorities to participate in creditors’ committee meetings – but without voting rights.
The idea is to ensure that the agency’s concerns are raised at the meeting and that the creditors’ committee, which includes homebuyers in the case of real estate, can raise them or the government agency addresses them instead of raising them with the insolvency tribunal. delaying resolution for years, as has been the experience in several cases.