Stressbusting in Real Estate!
The Indian real-estate sector was endeavouring to accept and adjust to the changes ushered in by the structural reforms of demonetisation, GST and the Real Estate (Regulation and Development) Act (RERA), initiated periodically from 2016. The NBFC catastrophe in the second half of 2018, leading to a severe liquidity crisis for the developers, added to their woes. The non-availability of the refinance window caused many real-estate projects under construction to be stalled.
The Insolvency and Bankruptcy Code 2016 (IBC) has been a mature step towards setting up a legal framework to adjudicate matters of financial failure and insolvency. The code attempts to end the regime of debtors who co