Real estate sector backs proposed IBC rule change for defaults

According to experts, defaults in the real estate sector often pertain to specific projects instead of the whole group

Homebuyers are likely to benefit from a government proposal to have individual project resolution in the real estate sector under the Insolvency and Bankruptcy Code (IBC) framework, experts said.

“Under the proposed framework related to corporates that are promoters of real estate projects, insolvency provisions would be applicable to projects where default has been reported. Thus, there would be minimal disruption to other projects of the same company,” said Anshuman Magazine, chairman and chief executive officer (CEO), India, South East Asia, Middle East & Africa, CBRE, a real estate consultancy firm.

The government proposes a special dispensation to initiate Corporate