A regulatory authority has proposed reforms to simplify the insolvency process for real estate companies and strengthen protection for stakeholders. The suggested changes aim to make real estate insolvency proceedings more efficient and effective.

According to a recent discussion paper, one key proposal is to include land authorities as invitees — without voting rights — in creditor committee meetings. In insolvency cases involving real estate companies, land authorities play an essential role, yet they currently do not have mandatory representation in these meetings. Their participation is expected to improve clarity on regulatory compliance and enhance the practicality of resolution plans.

The paper also raised concerns about cancelled land allotments during insolvency proceedings. It suggested that professionals handling the process should report such cancellations to the creditor committee, enabling stakeholders to decide whether to continue with the resolution process or opt for liquidation.

The regulator has invited feedback on these proposals by the specified deadline. After reviewing the responses, it plans to frame the necessary rules under the relevant provisions of the insolvency framework.

https://www.livehomes.in/news_letter