IBBI Changes Real Estate Insolvency Rules

India's insolvency regulator has amended rules for developers with multiple projects, allowing creditors to recommend that an individual project be excluded from corporate insolvency proceedings.

The Insolvency and Bankruptcy Board of India notified its fifth amendment to the corporate insolvency resolution regulations on 30 October 2026. The change introduces project-level information and a route to recommend exclusion; it does not automatically remove completed projects from the process.

The resolution professional must put project-wise details before the committee of creditors, including registration with the relevant Real Estate Regulatory Authority, stage of completion, possession and occupancy, and the number of completed and unfinished units. The committee can recommend exclusion with at least 66 percent of its voting share and recorded reasons. The adjudicating authority must then consider the application.

The Indian Express explains the new process and its potential implications for homebuyers -> Insolvency board's new rules seek to keep completed real estate projects out of resolution process.

The amendment also calls for a project-wise technical and cost-to-complete assessment before expressions of interest are invited. This should cover construction progress, approvals, inventory, funding needs and risks, according to the reporting. The rules provide for homebuyer representation in the monitoring committee and for more flexible consideration of eligible requests for possession and registration.

These measures distinguish between projects within one distressed company, but an exclusion still depends on the facts, creditor decision and authority's consideration. They do not guarantee a completion date, possession or recovery of money. Existing proceedings and the applicable order require individual review.

What to Check

• Check the developer and project in the IBBI public announcement register and identify the resolution professional and any claim deadlines.
• Compare the project's registration and progress information on the relevant state RERA portal with the project's insolvency notices and any adjudicating authority order.
• Ask the authorised representative or resolution professional whether a project-specific exclusion has actually been recommended or ordered. A proposal is not a final decision.

Sources

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• Insolvency board's new rules seek to keep completed real estate projects out of resolution process, The Indian Express, 31 October 2026.
• Public Announcement, Insolvency and Bankruptcy Board of India, accessed 1 November 2026.

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