Context:
The Insolvency and Bankruptcy Board of India (IBBI) has amended corporate insolvency regulations.
- Now allows RERA authorities to participate in Committee of Creditors (CoC) meetings during resolution of stressed real estate assets.
- This move acknowledges RERA’s key role, but the involvement remains purely consultative.
Need for Structural Reforms
Proposed Solutions
- Statutory mechanisms are needed for regulatory coordination in sectoral insolvencies.
- Sector-specific authorities must:
- Institute claim-processing systems
- Attend CoC meetings as stakeholders
- Provide timely approvals for resolution plan implementation
Current Amendment Is Inadequate
- The IBBI’s amendment is a symbolic gesture, not a structural reform.
- Legislative clarity and integrated frameworks are essential to resolve real sector insolvency effectively.
BS
