Homebuyers can now rejoice as they are allowed to take possession of their houses even while the resolution process is still ongoing.
Previously, they had to wait until the process was fully completed, leading to long delays and uncertainties.
This new development follows the revised rules introduced by the Insolvency and Bankruptcy Board of India (IBBI), effective February 3.
Faster Possession of Homes
The revised rules aim to provide relief to millions of homebuyers. Earlier, buyers could only get possession after the entire insolvency process of real estate companies was completed—a process that often dragged on for years, causing frustration.
With the new rules, buyers can now take possession during the resolution process itself.
This change addresses a key issue in the real estate sector and is expected to speed up the handover of homes.
Key Changes to the Resolution Process
IBBI has made important amendments to the corporate insolvency resolution process.
Resolution professionals can now hand over possession of plots, apartments, or buildings during the process, provided that all formalities are completed and approval is obtained from the Committee of Creditors (CoC).
This step is expected to significantly shorten the time taken for resolving real estate projects and ensure buyers receive their properties sooner.
Enhanced Support for Home Buyers
To further support homebuyers, IBBI has introduced facilitators to act as intermediaries between authorized representatives and creditors.
These facilitators will ensure that buyers actively participate in the resolution process and stay informed about the progress of insolvency proceedings.
Additionally, the CoC can now invite land authorities like NOIDA and HUDA to participate in resolution meetings.
Their expertise in regulatory and land development matters will help streamline the process and build trust among stakeholders, especially homebuyers.
Expert Views on the Changes
Real estate experts believe these changes will bring more transparency and trust to the resolution process.
They expect the revised rules to resolve long-standing issues in the real estate sector while giving homebuyers greater confidence and quicker access to their homes.
