Relief for Smaller Developers in 5th Relief Tranche
- Prashant Thakur -
In a big relief for struggling SMEs and MSMEs from going under insolvency in the present uncertain times, the FM announced that any debt incurred during Covid-19 for a company will be excluded from the default category under IBC. Additionally, she announced that no fresh insolvency will be initiated for one year so impacted businesses can focus on survival and recovery for this period.
This measure, along with previously announced sops such as extension of loan moratoriums and extension of RERA deadlines can come to the rescue of smaller local developers who are particularly impacted by the funding crunch and low sales.
About the Author
Prashant ThakurAuthor & Entrepreneur
Prashant Thakur, Head – Research, Anarock Property Consultants
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