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IBBI mandates inclusion of all allottees in insolvency data
26 Feb
Summary
- IBBI now requires all allottees to be detailed in company insolvency information.
- Resolution plans must address treatment for all listed allottees.
- Valuation framework reforms aim to include all tangible/intangible assets.
The Insolvency and Bankruptcy Board of India (IBBI) has introduced significant reforms to ensure fair treatment of homebuyers. A mandatory inclusion of all allottees, even those who haven't filed claims, in the information memorandum for companies undergoing insolvency is now required. This ensures that all homebuyers are accounted for and their interests are considered.
Resolution plans must now explicitly address the treatment of these allottees, promoting transparency and reducing potential disputes during implementation. This directive applies to allottees whose names are recorded in company books or by the Real Estate Regulatory Authority.
Furthermore, the IBBI has overhauled its valuation framework under the Insolvency and Bankruptcy Code (IBC). This reform aims to enhance transparency and credibility by ensuring fair value includes tangible, intangible assets, and their synergies. Standardized valuation reports and documentation are also being implemented to improve consistency and auditability.
