IBBI Amends CIRP Regulations To Provide For Project-Wise Resolution Of Real Estate Companies

The Insolvency and Bankruptcy Board of India has amended the Insolvency Resolution Process for Corporate Persons Regulations, 2016, introducing project-specific measures for corporate debtors undergoing insolvency proceedings and having real estate projects.

Under the Fifth Amendment Regulations, the Committee of Creditors (CoC) can recommend exclusion of an individual real estate project from the Corporate Insolvency Resolution Process (CIRP) with at least 66% of the voting share. Following such approval, the Resolution Professional (RP) must approach the Adjudicating Authority with reasons recorded by the CoC.

The amendment also requires the Interim Resolution Professional or RP to maintain separate bank accounts for each real estate project of the corporate debtor and periodically submit project-wise statements of receipts, payments and other financial information to the CoC. They must also ensure that funds are used in accordance with the Real Estate (Regulation and Development) Act, 2016.

It further requires the RP, with the CoC's approval, to appoint qualified independent professionals to assess each real estate project's construction progress, regulatory approvals, sold and unsold inventory, estimated completion costs, funding requirements, delivery timelines and project-related risks. The assessment must be completed before inviting resolution applicants and should be incorporated in the Information Memorandum.

It also gives homebuyers a greater role in the resolution process. The Monitoring Committee shall include a representative of homebuyers, either their authorised representative or another person chosen by a majority of allottees. Representatives of the concerned RERA and competent authority may also be included if they agree to participate.

Apart from this, the amendment requires resolution plans to clearly state how homebuyers' claims will be addressed, whether through handing over possession, refunding the money paid, or transferring ownership of the property. The plans must also prescribe project-wise, phase-wise or tower-wise timelines for completion and delivery of possession, wherever applicable, and provide for periodic progress reports to the Monitoring Committee.

The Fifth Amendment Regulations were notified on October 30, 2026, and came into force on the date of their publication in the Official Gazette.