India limits insolvency proceedings to specific housing projects
Claims must be confined to defaulting project only
Change
India’s NCLAT ruled insolvency proceedings must be restricted to the specific defaulting housing project rather than the entire developer.
Why it matters
Assets and liabilities cannot be pooled across projects, requiring project-level claim validation and resolution.
Implications
- — Recovery limited to project assets — creditor risk increases
- — Resolution processes become project-specific — complexity rises
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