Real Estate

Real Estate Transactions

Developers to get 75% of arbitration awards in govt projects even if verdict is challenged

Business Line  

In a move aimed at providing liquidity relief to the construction sector and cushioning banks' exposure to disputed government projects, the government has framed new rules to pay out 75% of arbitration awards secured by developers even if the department overseeing the project has challenged the outcome of the arbitration. A new rule — 227A — has been inserted in the General Financial Rules, 2017 for the purpose.