India planning new rules for quicker resolution of builders' insolvency

India plans to introduce new rules for handling real estate bankruptcies, which would help homebuyers even as their builders wind down, people familiar with the matter said.
 

The proposed change to the nation’s Insolvency and Bankruptcy Code will permit resolution of the cases on a project-wise basis, the people said, asking not to be named, as the information is not public. That will allow handing over completed apartments to the home buyers even when the developer’s insolvency process is underway, they said.

A spokesperson for the corporate affairs ministry declined to comment.

Indian realty sector has seen many builders going