A total of 344 corporate debtors (CDs) engaged in construction and real estate activities in Delhi have been admitted into Corporate Insolvency Resolution Process (CIRP) by the end of September 2022, the Parliament was told on Monday.
As per the data provided by the Insolvency and Bankruptcy Board of India (IBBI), out of this, 181 CIRPs have been closed and 163 are ongoing.
Of the closed CIRPs, 98 have been closed on appeal or review or settled, 34 have been withdrawn, and 20 cases have ended in approval of resolution plans and 29 have ended in orders for liquidation, Minister of State for Corporate Affairs, Rao Inderjit Singh told the Lok Sabha in a written reply.
The Insolvency and Bankruptcy Code, 2016 (Code) endeavours to close the various processes at the earliest. Further, the Code provides for treatment of home buyers as financial creditors enabling them to invoke section 7 of the Code against defaulting corporate debtors and to have representation in the Committee of Creditors (CoC) and participate effectively in the insolvency resolution process through an authorised representative, he added.
The Minister also said that to prevent the misuse of the provisions in triggering CIRP, the Code provides that where creditors belong to a class, the application shall be filed jointly by not less than 100 such creditors or 10 per cent of the number of creditors in such class, whichever is less.
In order to enable the NCLT in timely disposal of cases, the government is taking all the necessary steps from time to time including regular appointment of Members and provision of adequate physical infrastructure. The government has appointed 20 new Members in the NCLT in 2021, approved appointment of 15 new Members in 2022 and initiated the process to fill other vacancies, he said in the reply.
The Ministry of Housing and Urban Affairs has informed that in order to protect the interest of home buyers and to ensure the transparency and accountability in the Real Estate Sector, the Parliament has enacted the Real Estate (Regulation and Development) Act, 2016 (RERA).
Further, in order to give relief to homebuyers of stalled projects, a Special Window for Completion of Affordable and Mid-Income Housing (SWAMIH investment fund) has been created for funding stalled projects that are net-worth positive and registered under RERA, including those projects that have been declared as non-performing assets (NPAs) or are pending proceedings before the National Company Law Tribunal under the Insolvency and Bankruptcy Code, added the reply.