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IBC resolution plans
Real Estate, manufacturing and construction account for 71% of IBC resolution plans: ASSOCHAM-PWC report
The IBBI discussion paper has proposed keeping parcels that are in the possession of homebuyers from the dimension of liquidation. It has also proposed mandatorily registering systems under the Real Estate Regulatory Authority.
Real Estate, manufacturing and construction reckoned for 71 percent of the Commercial Bankruptcy Resolution Processes( CIRPs) admitted under the Insolvency and Bankruptcy Code till June, 2023, an ASSOCHAM- PWC report has noted.
Cases in these three sectors appertained under the IBC, all the crucial stakeholders concentrate on putting together material enabling laws and acclimatized judgments to help them. The reanimation plans for the companies from these sectors were to the extent of 73 percent of the references under the IBC.
“ Manufacturing, real estate and construction continue to bear the burden of bankruptcy procedures, as is clear from data published by the IBBI( Bankruptcy and Bankruptcy Board of India). Up until June 2023, these three sectors reckoned for 71 percent of the CIRPs that were admitted, ” the report said.
ASSOCHAM Secretary General Deepak Sood said,'' The launch of the creditor-friendly model of IBC has greatly accelerated the growth of the private credit sector in India by laying a solid platform for credit enforcement. ” To give relief to homebuyers whose systems are wedged, the IBBI discussion paper has proposed keeping parcels that are in the possession of homebuyers from the dimension of liquidation. It has also proposed mandatorily registering systems under the Real Estate Regulatory Authority.
The other three proffers include operating a separate bank account for each real estate design, executing enrollment / sublease deeds with the blessing of the Committee of Creditors( CoC) during the resolution process, and allowing the CoC to examine and invite separate plans for each design.
