IBC amendments: Govt reviews proposed changes in real estate insolvencies

Bill likely to be tabled in Monsoon session, MCA in talks with RERA to ensure no misuse

The Ministry of Corporate Affairs (MCA) is likely to table the Insolvency and Bankruptcy Code (Amendment) Bill in the monsoon session of Parliament. MCA is in talks with the Real Estate Regulatory Authority (RERA) over the proposed changes in the law over real estate insolvencies. “We want to ensure that there is no misuse of the law,” said a senior government official who did not wish to be named. 

MCA has proposed that if the insolvency is initiated against a promoter of a real estate project, then CIRP (Corporate Insolvency Resolution Process) provisions would apply only to projects that have