IBBI Allows RERA Role in CoC Meetings: Reform Gaps
Why in the news
A regulatory tweak now lets real estate regulators sit in creditor meetings during resolution of stressed projects, but critics say it falls short.
Key facts
- Body: Insolvency and Bankruptcy Board of India (IBBI).
- Change: RERA authorities may take part in Committee of Creditors (CoC) meetings for stressed real estate assets.
- Limit: participation is purely consultative, with no decision-making power.
Why it is seen as inadequate
- The amendment is described as a symbolic gesture, not structural reform.
- Legislative clarity and integrated frameworks are needed to resolve sector insolvencies.
Proposed solutions
- Statutory mechanisms for coordination between regulators in sector-specific insolvencies.
- Sector authorities should set up claim-processing systems.
- They should attend CoC meetings as stakeholders.
- They should give timely approvals so resolution plans can be implemented.
Exam angle
- Full forms: IBBI, RERA, CoC.
- Nature of RERA’s role: consultative.
- Domain: insolvency of real estate projects.