IBBI Directs Insolvency Professionals To Display CIRP Notices At Real Estate Project Sites

The Insolvency and Bankruptcy Board of India (IBBI) has directed insolvency professionals handling the Corporate Insolvency Resolution Process (CIRP) of companies with one or more real estate projects to display notices announcing the insolvency proceedings at each project site and the company's offices within seven days of their appointment.

The notices must inform stakeholders that the company is undergoing CIRP and provide the name and contact details of the appointed insolvency professional.

The circular dated October 30, 2026, also requires insolvency professionals to ensure compliance with the Real Estate (Regulation and Development) Act, 2016 (RERA) during CIRP. They must obtain project-related information from the concerned RERA portals, wherever available.

The circular provides, “The IRP or RP, as the case may be, shall ensure compliance with the applicable provisions of the RERA Act and the rules and regulations made thereunder during CIRP.”

Issued under Section 196 of the Insolvency and Bankruptcy Code, 2016 (IBC), the circular applies to corporate debtors having one or more real estate projects undergoing CIRP.

It places these responsibilities on Interim Resolution Professionals (IRPs) and Resolution Professionals (RPs).

IBBI noted that information such as sanctioned plans, statutory approvals, designated bank accounts and construction progress may not be readily available to insolvency professionals from the records of companies undergoing insolvency. Even where available, these records may be incomplete or inconsistent.

Access to RERA records would help insolvency professionals prepare more complete information memoranda and assist prospective resolution applicants in formulating viable resolution plans, the Board observed.

“Access to the regulatory record maintained by the RERA on its website enables the insolvency professional to prepare a more complete information memorandum, assists prospective resolution applicants in formulating viable resolution plans, and thereby enhances value in the resolution of real estate projects”, it said.

Under the circular, insolvency professionals must obtain the following information for each real estate project of the corporate debtor, wherever available on the concerned RERA portal:

(a) Project registration details;

(b) Sanctioned plans and approved project configurations;

(c) Status of project registration and extensions;

(d) Allottee records available with the authority;

(e) Status of the separate bank account maintained under RERA;

(f) Approvals, permissions and compliances relating to the project; and

(g) Any other information relevant to the discharge of duties under the IBC.

The information may be used to prepare the information memorandum, verify claims and assess the project's status.

Where company records are incomplete, unavailable or inconsistent, insolvency professionals may rely on RERA records as an important source of information, subject to due verification and reconciliation.

The circular also allows Resolution Professionals (RPs) to invite the concerned RERA authority to submit its views in writing on the regulatory compliance, feasibility and implementation of resolution plans being considered by the Committee of Creditors (CoC).

Seeking these views is optional. However, if RERA furnishes its views, the RP must place them before the CoC and make them available to prospective resolution applicants.

For displaying the insolvency notices, conspicuous signboards must be placed at the main entrance or another prominent location at each real estate project site.

Notice boards must also be displayed at the company's registered office, corporate office, site office, sales office and any other office accessible to stakeholders.

The signboards and notice boards must state that the company is undergoing CIRP and provide the name and contact details of the appointed IRP or RP.

They must be displayed within seven days of the insolvency professional's appointment and remain in place until the conclusion of CIRP. Any change in the appointed IRP or RP must be reflected on the signboards and notice boards forthwith.

IBBI said the disclosures would put stakeholders dealing with the company on notice of the insolvency proceedings. They would also facilitate timely submission of claims, help preserve the value of the corporate debtor and its assets, and promote transparency during CIRP.

The circular further allows insolvency professionals to display additional project-specific information, having regard to the facts and circumstances of the project.

These directions come alongside the fifth amendment to the CIRP regulations. The amendment introduces project-wise mechanisms for resolving insolvency involving real estate companies, including separate bank accounts for individual projects, independent project assessments, and greater representation for homebuyers in the resolution process