PROJECT FINANCE

Real estate story of insolvency, bankruptcy escape resolution

The insolvency regulator, Insolvency and Bankruptcy Board of India (IBBI), in June 2022 invited public suggestions for effective and expeditious resolution of real-estate projects. However, the power struggle between homebuyers and lending institutions for dominant control over the corporate insolvency resolution process (CIRP) of real-estate developers has only intensified post the July 2022 IDBI Trusteeship Services Limited v. Abhinav Mukherji judgment of the National Company Law Appellate Tribunal (NCLAT), which confirmed the power of homebuyers to challenge lending institutions from qualifying as Financial Creditors (on a case-to-case basis) and finding a place on the Committee of Creditors (COC) […]