IBBI

Regulators need discretion, but that discretion must be structured, transparent and predictable

IBBI amends insolvency rules for real estate developers to speed up home delivery, strengthen homebuyers' participation and improve transparency in resolution processes

To expedite real estate insolvencies, regulator IBBI has notified amendments to regulations providing for project-wise treatment, enhanced disclosures, stronger participation of homebuyers as well as detailed cost-assessment that will help attract more realistic bids. Against the backdrop of issues, challenges and delays being faced in the resolution of stressed real estate projects that are impacting homebuyers, the watchdog has amended the regulations pertaining to insolvency resolution process for corporate persons. IBBI is a key institution in implementing the Insolvency and Bankruptcy Code (IBC), which provides the framework for resolution of stressed assets in a market-linked and time-bound manner. "The amendments aim to facilitate more informed and viable resolution of real estate projects, enhance transparency and accountability, and strengthen the interests of homebuyers and other stakeholders in the insolvency resolution process," IBBI said in a release on Saturday. With

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The insolvency regulator has proposed mandatory beneficial ownership disclosures by bidders under the Insolvency and Bankruptcy Code to improve due diligence and prevent misuse of Section 32A immunity

IBBI removes sale of company as going concern in liquidation; now only asset sales allowed, shifting focus strictly to terminal liquidation process

IBC and PMLA have often clashed with each other in cases where the assets of an entity undergoing insolvency have been attached by the ED for money laundering activities

The Insolvency and Bankruptcy Board and the Enforcement Directorate have arrived at a solution to address the problem related to the interface between the insolvency law and the PMLA in resolving stressed assets. "I hope that in a month or two, we should be able to issue a circular as to how to go about it so as to solve the problem," Insolvency and Bankruptcy Board of India (IBBI) Chairperson Ravi Mital said on Wednesday. There have been issues in resolution of certain cases under the Insolvency and Bankruptcy Code (IBC) where there have been suspected assets involving black money. Under the Prevention of Money Laundering Act (PMLA), the Enforcement Directorate (ED) can attach such assets. The IBC provides a moratorium on assets of an entity undergoing insolvency resolution process. "There is a problem in the interface between the IBC and the PMLA. There is a case pending in the Supreme Court and we faced problems in some cases. So we have had discussions with ED and we have arrive