Homebuyers ko relief, stressed projects ka fast resolution.

IBBI Panel Pushes Project-Wise Insolvency for Real Estate Sector.

A panel set up by the Insolvency and Bankruptcy Board of India (IBBI) has recommended a major shift in how real estate insolvency cases are handled. Instead of dragging an entire real estate company into bankruptcy, insolvency proceedings should ordinarily be limited to only the stressed project, treating each project as an independent economic unit. This move aims to protect homebuyers in solvent projects and speed up the resolution of troubled ones. The recommendation aligns with observations made by the Supreme Court of India, which stressed that project completion and homebuyers’ right to shelter must be prioritised. The panel has also suggested raising the minimum default threshold for initiating insolvency from ₹1 crore to ₹5 crore to avoid premature cases. The proposals could significantly impact developers such as Jaypee and Unitech, who are already under insolvency proceedings.