While real estate experts in Bengaluru applauded handing over possession of common areas to the association, they flagged several issues affecting homebuyers.
In a relief to homebuyers, assets in a real estate project that have been handed over to the allottee would be kept out of the liquidation process of the company, the latest amendment to the rules by the Insolvency and Bankruptcy Board of India (IBBI) has said.
The notification dated February 12 said: For the purposes of clause (e) of sub-section (4) of section 36, wherever the corporate debtor has given possession to an allottee in a real estate project, such asset shall not form a part of the liquidation estate of the corporate debtor.
Real estate experts call it a pragmatic approach by the regulator. However, there are many cases where possession has not been given because the property is stuck in insolvency.
The order has brought to light several ambiguities in the city s real estate sector and the state government needs to make it clear who is in charge of awarding OC in places that are not governed by any development authority