Home buyers now have a reason to celebrate. They can take possession of their houses even while the resolution process is ongoing. Previously, they had to wait until the process was completed, which often caused significant delays and uncertainties.
This change comes after the Insolvency and Bankruptcy Board of India (IBBI) revised the rules, effective immediately from February 3.
Relief for Lakhs of Home Buyers
The revised rules will bring much-needed relief to millions of home buyers. Earlier, possession was granted only after the insolvency process for real estate companies was completed—a procedure that could take an extended period.
This delay caused frustration and uncertainty for buyers. With the new rules, buyers can now take possession during the process, addressing a major concern for the real estate sector.
Possession Allowed for Plots and Apartments
IBBI has introduced significant changes to the corporate insolvency resolution process.
A key amendment empowers resolution professionals to hand over possession of plots, apartments, or buildings to buyers even while the resolution is ongoing.
However, this requires completing all formalities and obtaining approval from the Committee of Creditors (CoC). This step is expected to expedite the resolution process in real estate projects, which traditionally take a long time.
Increased Participation of Home Buyers
To further support home buyers, IBBI has introduced facilitators who will act as intermediaries between authorized representatives and creditors.
These facilitators will ensure better participation of home buyers in the resolution process and provide them with detailed updates on the insolvency proceedings.
Collaboration with Land Authorities
The Committee of Creditors can now invite land authorities, such as NOIDA and HUDA, to participate in meetings to make the resolution process more effective.
These authorities will share their expertise on regulatory and land development issues, building trust among all stakeholders, including home buyers.
Expert Opinions
Real estate experts believe these changes by IBBI will bring transparency and confidence to the resolution process, benefiting home buyers immensely and addressing long-standing challenges in the real estate sector.
