Based on recommendations of the Insolvency Law Committee, in the future there may be changes in the IBC,” Srinivas said. A large number of cases have been filed under the IBC, which provides for a market-determined and time-bound insolvency resolution process. “There are also apprehensions on whether this system (insolvency law) can be abused. Can somebody trigger this system for some sort of wrongful intent?” the secretary said. Among others, issues such as whether the insolvency process should be governed by liquidation value or enterprise value would also be looked into. “What are the rights of home buyers? What is the capacity of insolvency professionals? These are among the issues that has to be seen,” he said. In recent months, there have been concerns about incomplete realty projects and consequent hardships faced by home buyers. Some real estate firms are also facing insolvency proceedings.
There have also been suggestions from certain quarters about having provisions that would help provide relief to home buyers. Responding to a query about home buyers’ rights in the context of the insolvency law, Srinivas said, “whatever you do, it has to be calibrated in a way that public interest is not affected. You maximise benefits and minimise losses”. The panel members include Insolvency and Bankruptcy Board of India (IBBI) Chairperson M S Sahoo, RBI Executive Director Sudarshan Sen, former Lok Sabha Secretary General T K Viswanathan, Edelweiss Group Chairman and CEO Rashesh Shah, Shardul Amarchand Mangaldas and Co Executive Chairman Shardul Shroff and Xpro India Chairman Sidharth Birla.