In a relief to creditor classes with large numbers such as homebuyers, the Insolvency and Bankruptcy Board of India (IBBI) announced significant amendments to the Insolvency Resolution Process for Corporate Persons Regulations, 2016 on Wednesday.

These amendments, effective from September 24, 2024, are designed to enhance the representation of significant classes of creditors during corporate insolvency proceedings.

The new regulations allow for the appointment of an interim representative who will advocate for a class of creditors, such as homebuyers, while waiting for the approval of a permanent authorised representative from the Adjudicating Authority.

This interim representative will have the same rights and responsibilities as a fully authorised representative during meetings of committees of creditors, ensuring that the interests of these stakeholders are adequately represented.

These amendments are expected to streamline the insolvency process and provide homebuyers with a fairer opportunity to voice their concerns, addressing the challenges they often face in such proceedings.

[Read Press Release]