INDUSTRY
IBBI rolls out changes to real estate insolvency process to speed up resolution
- IBJ Bureau
- Nov 01, 2026
The Insolvency and Bankruptcy Board of India (IBBI) has notified amendments to real estate insolvency regulations, providing project-wise treatment, enhanced disclosures, stronger participation of homebuyers and detailed cost-assessment of projects.
These amendments are designed to expedite the resolution of real estate insolvencies.
The insolvency regulator IBBI is the key institution in implementing the Insolvency and Bankruptcy Code (IBC), which provides the framework for resolution of stressed assets in a market-linked and time-bound manner.
The amendments mandate a separate bank account for each real estate project of the corporate debtor undergoing insolvency.
The Resolution Professional (RP) or the Interim Resolution Professional (IRP) must place financial information about each project before the Committee of Creditors (CoC).
This will ensure that funds contributed for a project are utilised for that project, bringing greater financial discipline and building the confidence of homebuyers and creditors in the use of project funds.
The RP should place all project-wise information, including the stage of completion and status of possession and occupancy, before the CoC in its first meeting.
It will enable project-wise treatment of real estate insolvencies, minimising disruption to completed and occupied projects and focusing the efforts of resolution on projects that genuinely require intervention.
According to the changes, the authorised representatives of homebuyers should submit minutes of their meeting with creditors to the RP, who will subsequently place it before the CoC.
It aims to enhance transparency and ensure that the concerns of homebuyers and other class of creditors are placed before the CoC.
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