new delhi four years ago kanupriya was among the 20000 homebuyers in jaypee infratechs project in noida who was hoping that an early resolution will help her take possession of the apartment she had booked in 2012 she is still waiting as the resolution process monitored directly by the supreme court seems to have entered the final legjaypee may be the most highprofile case where the hunt for a resolution applicant continues but there are several other real estate projects across the country where homebuyers continue to face uncertaintyfive years after the insolvency bankruptcy code ibc was notified only eight resolution plans for real estate sector have been approved although some 205 cases had been admitted until march 2021 insolvency bankruptcy board of india data showedthat translates into a success rate of under 4 making it the worstperforming sector barring computer and related activity see chartthis is despite the stakes being much higher unlike other sectors where it is banks and operational creditors such as suppliers who drag companies to the national company law tribunal nclt in realty there is the additional challenge of protecting the interests of homebuyers who invest their lifetime savingsno wonder this is the only area where even the government made an exception in bumping up homebuyers from the category of operational creditors to financial creditors giving them an equal say in deciding the new resolution applicantunlike in other sectors there are more complexities in real estate its not just ibc which usually has institutional creditors and suppliers rera which means protecting buyers who may have a bank loan is another case in point moreover the rules keep evolving which makes it difficult to comply with newer guidelines when a developer looks to take over a project basically these regulations and guidelines are still work in progress and need to evolve further that said they are still major upgrades over the previous lack of regulation and redressal mechanisms said shobhit agarwal md ceo at anarock capitalfor banks the primary focus of the resolution exercise is to minimise the hit that they have to take on their loans and maximise the gains in contrast homebuyers want a more stable company to take over the company even if it means that lenders have to take a haircutwhat has complicated matters is a fall in real estate prices making the project unviable for resolution applicants projects normally wont be commercially viable if the cost of construction is more than receivables and financial creditors consist of financial institutions and homebuyers in many cases funds have been diverted and the corporate debtor company doesnt have sufficient money to construct the units in such cases projects are in a limbo besides the market doesnt have adequate liquidity to support real estate cases says chandra prakash a resolution professional dealing with three real estate projectsthere are other complications when land is owned by more than one entity and it needs to be combined in such cases project