'IBC to remain sector-agnostic'
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Sep 9, 2025 | Page No.: 2 | Position: Middle Right | Source: Gireesh Chandra Prasad | Sq Cm: 194 | AVE: 126352 | PR Value: 631760
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IBC to remain sector-agnostic Gireesh Chandra Prasad gireesh p Iivemint com NEW DELHI India s insolvency resolution framework will remain sec- tor-agnostic as the govern- ment has assessed it is not prac- tical to offer special dispensa- tions to specific sectors like real estate according to two per- sons informed about the gov- ernment discussions Contrary to expectations the amendments to the Insolvency and Bankruptcy Code IBC introduced in Parliament by The government has assessed it is not practical to offer special the government in the mon- dispensations to specific sectors like real estate MINT soon session currently before a House panel did not include a While more ring-fencing of ring-fencing is both legally project-specific insolvency specific projects could be done sound and practically sensible regime for real estate In 2023 under Rem project-wise debt as Rera already mandates sepa- an expert committee set up by resolution will not be pursued rate bank accounts for each the housing and urban affairs under IBC IBC is not a sector project offers regulatory over- ministry to look into stalled real specific law Making carve outs sight on project completion estate projects suggested that for specific sectors can make and fund utilization and pro- the registration requirement of the statute more complex Giv- tects homebuyers without individual projects with Real ing a specific dispensation for amending the IBC Estate Regulatory Authorities real estate is not the best thing Rera complements IBC by must be strictly implemented to do said one of the two per- protecting project-level inter- as it will help in project-wise sons quoted above Besides it ests without requiring IBC to debt resolution will give rise to similar deviate from its corporate debt- The committee led by demands from other sectors or-focused framework said India s former G20 Sherpa Experts pointed out that reli- Yogendra Aldak executive Amitabh Kant also emphasised ance on the Real Estate Regula- partner at Lakshmikumaran the maintenance of project- tion and Development Act of and Sridharan attorneys wise escrow accounts which 2016 Rera as the primary For an extended version of the will help in this regard framework for project-level story go to livemint com