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IBC panel eases insolvency rules, treat home buyers as creditors

The Insolvency and Bankruptcy Code review panel called for sweeping changes in the law aimed at easing insolvency rules for small enterprises and providing relief to home buyers by treating them as financial creditors while deeming the amount raised from them for real estate projects as financial debt. The committee proposed that promoters of micro, small and medium enterprises (MSMEs) who are not wilful defaulters should be allowed to bid during the insolvency process, according to a copy of the report that ET has seen. If adopted, that would vastly improve the prospects of such companies being acquired and revived, thus saving jobs, instead of going into liquidation.

Source : ET Realty