In a move to provide relief to large creditor classes like homebuyers, the Insolvency and Bankruptcy Board of India (IBBI) has announced key amendments to the Insolvency Resolution Process for Corporate Persons Regulations, 2016. Effective from September 24, 2024, these changes aim to strengthen the representation of significant creditor groups in corporate insolvency proceedings.
Under the new regulations, an interim representative can be appointed to advocate on behalf of creditor classes such as homebuyers while awaiting the Adjudicating Authority’s approval of a permanent authorised representative. This interim representative will hold the same rights and responsibilities as a fully authorised representative during meetings of the creditors’ committee, ensuring that these groups have a strong voice throughout the process.
These amendments are expected to streamline insolvency proceedings and offer homebuyers a more equitable opportunity to express their concerns, addressing the difficulties they typically encounter during such cases.
