The government is mulling permitting registration of flats in finished projects even if the developer is going through insolvency resolution.
Given the difficulties in resolving bankruptcy in the housing sector, where homebuyers are also considered financial creditors under the Insolvency and Bankruptcy Code (IBC), it might also make it possible for the National Company Law Tribunal (NCLT) to consult the appropriate Real Estate Regulatory Authority (RERA).
The proposed action is anticipated to relieve thousands of homeowners who face the possibility of seeing their money disappear when builders fail.
Additionally, this can inspire homebuyers to complete their mortgages and gain ownership. Once a developer has filed for bankruptcy, buyers are frequently hesitant to finish payments.
More than 100 housing projects are reportedly blocked or delayed in the National Capital Region's Noida and Greater Noida sectors alone.