INTERPLAY BETWEEN RERA AND INSOLVENCY AND BANKRUPTCY CODE IN REAL ESTATE INSOLVENCY: ANALYSIS OF POST 2025 RESOLUTIONS OF STALLED HOUSING PROJECTS
D Lokendra Reddy, 2nd semester LLM Corporate law (India)
Stagnated housing projects are also a major issue in the Indian real estate industry that has led to economic loss and long suffering of home buyers. Delays, absence of transparency, and absence of accountability among developers were some of the problems that were addressed by passing the Real Estate (Regulation and Development) Act, 2016 (RERA) an Act that is specific to the sector intended to safeguard the interests of the homebuyers. Simultaneously, a new law, Insolvency and Bankruptcy Code, 2016 (IBC) has been enacted to offer a time-limited approach that will address insolvency of corporate organizations, including real estate developers. The concomitant nature of the two laws has led to several legal and practical issues especially in situations where real estate developers have gone into bankruptcies and housing developments are still pending completion. This paper explores the relationship that exists between the RERA and the IBC when dealing with insolvency of a real estate project with reference to how stalled housing projects would be resolved in the post 2025 era. The research applies a doctrinal approach to examine statutory and judicial rulings to comprehend how courts and tribunals have tried to reconcile the goals of consumer protection under RERA with the goal of insolvency resolution under the IBC. The paper also measures the case of homebuyers as financial creditors and effects of insolvency moratorium on an action before the RERA bodies. The article concludes that the judicial trends of the years after 2025 indicate the increasing focus on the completion and revival of the projects and less on the liquidation of real estate developers. Nonetheless, common issues like overlapping jurisdiction and delays in the process, as well as the absence of explicit statutory coordination between RERA and IBC, remain to have an impact on the efficient resolution. The paper wraps up and recommends that legal directions should be made more explicit and that the coordination of institutions should be enhanced to make sure that unfinished housing projects can be completed in time and that the interests of the homebuyers are better safeguarded.
| 📄 Type | 🔍 Information |
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| Research Paper | LawFoyer International Journal of Doctrinal Legal Research (LIJDLR), Volume 4, Issue 1, Page 2184–2212. |
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