IBBI notifies amendment of Regulatory Fee of Insolvency Resolution of Real Estate Project under CIRP Regulations [Read Notification]
IBBI notifies amendment of Regulatory Fee – IBBI notifies amendment – IBBI notifies – Regulatory Fee – IBBI – Insolvency Resolution of Real Estate Project – Real Estate Project – CIRP Regulations – CIRP – taxscan
IBBI notifies amendment of Regulatory Fee – IBBI notifies amendment – IBBI notifies – Regulatory Fee – IBBI – Insolvency Resolution of Real Estate Project – Real Estate Project – CIRP Regulations – CIRP – taxscan
The Insolvency and Bankruptcy Board of India (IBBI) vide notification No. IBBI/2023-24/GN/REG102 issued on 20th July 2023 has notified the amendment of regulatory fee of insolvency resolution of a real estate project under the IBBI (Insolvency Resolution Process for Corporate Persons) (Amendment) Regulations.
Pursuant to the authority granted by clause (e) of sub-section (13) of section 5, and clause (a) and (f) of sub-section (2) of section 30, and clauses (aa), (c), and (t) of sub-section (1) of section 196, along with section 240 of the Insolvency and Bankruptcy Code, 2016, the IBBI amended the existing Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
These regulations may be called the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Amendment) Regulations, 2023. It came into force on 20th July 2023.
IBBI has inserted an explanation to the Regulation 31A (1) of the CIRP Regulation. It explains that “For removal of doubts, it is hereby clarified that the regulatory fee under this sub-regulation, shall not be payable in cases where the approved resolution plan in respect of insolvency resolution of a real estate project is from an association or group of allottees in such real estate project.”
As per the explanation, there is no requirement to pay a regulatory fee if the approved resolution plan for the insolvency resolution of a real estate project is proposed by an association or group of allottees related to that particular real estate project.
In accordance with Regulation 31A (1), a regulatory fee amounting to 0.25 per cent of the realizable value to creditors under the resolution plan, as approved under section 31, must be remitted to the Board, but only if the realizable value exceeds the liquidation value. Additionally, it should be noted that this particular sub-regulation applies exclusively to resolution plans that have been approved under Section 31 on or after 1st October 2022.
A regulatory fee equivalent to one per cent of the expenses incurred in the insolvency resolution process, pertaining to the engagement of any professional or services by the interim resolution professional or resolution professional, will be due to the Board. This fee is payable to the Board as outlined in clause (cb) of sub-regulation (2) of regulation (7) of the IBBI (Insolvency Professionals) Regulations, 2016, states Regulation 31A(2).
To Read the full text of the Order CLICK HERE
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