In a recent press release, Union Minister Arun Jaitley said that the latest amendment to the Insolvency and Bankruptcy Code (IBC)would further formalize the real estate sector by curbing the entry of unreliable operators. The amendment, which has raised the status of home buyers to financial creditors, has given home buyers the authority to initiate insolvency proceedings against wayward developers.

According to Jaitley, as a result of these amendments, liquidations will be unlikely to take place in an asset-owning company since resolution will become the natural course; some other developer would probably acquire interest for completing the project. "The inevitable consequence of this would be that the market itself will discover solutions," said Jaitley.