(MENAFN- Live Mint)

New Delhi: The Insolvency and Bankruptcy Board of India (IBBI ) is working on the suggestions made in a recent case by the Supreme Court for improving the bankruptcy ecosystem, its chairperson Ravi Mital said on Wednesday.

Speaking at the ninth IBBI annual day event, Mital also said the regulator is currently revising its regulations after an intense review.

The apex court's suggestions cover a host of areas in the bankruptcy framework to be implemented by the IBBI, the ministry of corporate affairs, the ministry of housing and urban development, and the Real Estate Regulatory and Development Authorities (RERAs).

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The apex court's suggestions came on 12 September in the case of Mansi Brar Fernandes vs Shubha Sharma, in which the court ruled that the right to shelter is a fundamental right under Article 21. Ministry of corporate affairs secretary Deepti Gaur Mukerjee told Mint on the sidelines of the event that the ministry was also working on this.

Mint reported on 24 September that in light of the Supreme Court's suggestions, the government and IBBI were working on reforms to protect genuine homebuyers and restore credibility to the real estate sector.

The apex court's suggestions include early registration of property in a buyer's name after 20% payment, project-specific insolvency resolution so that only troubled projects-not entire developer groups-go into bankruptcy, stronger coordination between IBBI and state real estate regulatory authorities, and institutional reforms to ensure stalled projects are revived, Mint reported.

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"Recently, the SC has given two judgments related to real estate. We are very serious about it and have started working on those directions given by the SC. In the next two to three months, I hope that we should be able to implement those suggestions," Mital said at the event.

Ministry of corporate affairs secretary Mukerjee, who also spoke on the occasion, assured that any additional suggestions stakeholders may have for further amendments to IBC will be shared with the Parliament. The Lok Sabha speaker has appointed Baijayant Panda, a Bharatiya Janata Party parliamentarian, as the chairperson of the Select Committee on the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, which the government tabled in the monsoon session of Parliament.

The Select Committee is expected to give its report during the winter session of Parliament for taking up the Bill for passage.

Mital also explained that IBBI has so far made more than 125 amendments to its regulations, following elaborate consultations with all stakeholders.“We do an intensive review of our regulations every few years. We did an intense review of our regulations in 2024 and have implemented the committee's recommendations. This year again, we have done the same thing. We have received about 125 suggestions. Another committee that reviewed them has recommended what is to be done, and we will complete that process in the next three to four months," said Mital.

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He also said the regulator follows an intensive consultative mechanism for making regulations.

Mukerjee said that insolvency professionals and valuers have to be made future-ready as they are important pillars of the bankruptcy resolution ecosystem. The secretary highlighted the need for having more robust reports from professionals about the improper transactions executed by the management of defaulting companies, known as 'preferential, undervalued, fraudulent and extortionate (Pufe) transactions. Debt resolution professionals hired by creditors investigate such transactions and move tribunals for action against the perpetrators.

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