IBBI likely to bring out discussion paper on real estate insolvency

Increased involvement of the Real Estate Regulatory Authority, or RERA, could also be proposed in the upcoming discussion paper

The Insolvency and Bankruptcy Board of India (IBBI) is expected to bring out a comprehensive scheme of insolvency resolution in the real estate sector for public discussion soon, according to sources. 

The proposed changes in consideration under the Insolvency and Bankruptcy Code (IBC) includes a carve out for houses, which have already been handed over to homeowners, to be kept outside the purview of the resolution process, another official source said. 

This can be done through an existing provision in the law. Section 18 of the IBC, which deals with duties of the insolvency professional, gives powers to the government to exclude