New Delhi, Oct. 1 -- The government is set to decide how two overlapping laws can work harmoniously so that homebuyers aren't adversely affected when a real estate developer slips into bankruptcy and also faces regulatory action for financial crimes, two people familiar with the development said.

The ministry of corporate affairs, the Insolvency and Bankruptcy Board of India (IBBI) and the Directorate of Enforcement (ED) have held several meetings on aligning the two laws-the Prevention of Money Laundering Act (PMLA) and the Insolvency and Bankruptcy Code (IBC)-and now the government has to take a view on the matter, one person said.

The ED has prepared a new protocol to guide resolution professionals running bankrupt companies on how t...