NRIs Get Extra Protection on Property Investments in India
Non-Resident Indians (NRIs) investing in Indian real estate now have stronger safeguards, thanks to the latest changes in the country’s insolvency laws.
Earlier, homebuyers who had fully paid for their property often faced long delays in taking possession if the developer entered insolvency proceedings. They had to wait until a resolution was finalized, which created uncertainty and financial stress.
Under the new insolvency amendments, resolution professionals— with creditor approval—can hand over completed property units to buyers even while insolvency cases are still pending. This means NRIs no longer have to wait indefinitely to secure possession of finished homes.
Industry experts say this is a major step forward in investor protection, complementing earlier reforms such as the Real Estate Regulation and Development Act (RERA). Buyers also gain more transparency, equal treatment in creditor rights, and fair handling of claims.
For unfinished projects, the new rules allow the Committee of Creditors, which includes homebuyers, to prioritize completion. Solutions may involve bringing in new developers or hybrid models to ensure delivery.
The amendments also strengthen creditor confidence. A new “group insolvency” approach allows multiple companies in the same group to undergo a coordinated resolution, saving both time and value.
Importantly, foreign creditors now benefit from a global framework that improves transparency and predictability in cross-border insolvency cases—an assurance for banks and investors in the UAE with exposure to Indian businesses.
Overall, the changes give NRIs and global investors greater confidence and security when investing in Indian real estate.
