New Rules Shield Healthy Real Estate Projects From Insolvency
The Insolvency and Bankruptcy Board of India has notified new rules that let lenders ask for exemption for financially sound real estate projects from bankruptcy proceedings. The aim is to protect healthy projects when a developer runs into trouble elsewhere in its portfolio. That could mean fewer construction delays and registration problems for homebuyers.
Context
Context: Many homebuyers have waited years for flats when a builder defaulted on loans and stalled work. Under India's insolvency law, a developer's failure can freeze all its projects, so the new rules offer a narrower route for sound ones.
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