IBC to remain sector-agnostic

India's insolvency resolution framework will remain sector-agnostic as the government has assessed it is not practical to offer special dispensations to specific sectors like real estate, according to two persons informed about the government discussions.

- Gireesh Chandra Prasad

Contrary to expectations, the amendments to the Insolvency and Bankruptcy Code (IBC) introduced in Parliament by the government in the monsoon session, currently before a House panel, did not include a project-specific insolvency regime for real estate. In 2023, an expert committee set up by the housing and urban affairs ministry to look into stalled real estate projects suggested that the registration requirement of individual projects with Real Estate Regulatory Authorities must be strictly implemented, as it will help in project-wise debt reso