The press release announces the notification of the amendment regulations; exclusion of a project is only a recommendation by the committee of creditors — the Adjudicating Authority decides. The release does not address how the amendments apply to cases admitted before 30 October 2026.
- Issuer
- Insolvency and Bankruptcy Board of India
- Act
- Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2026
- Status
- notified
- Outcome
- Insolvency and Bankruptcy Board of India notification of the (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2026, on 30 October 2026, announced by press release on 31 October 2026.
Project-wise insolvency for real-estate developers
The Insolvency and Bankruptcy Board of India has notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2026, on 30 October 2026. The regulator announced the amendments in a press release dated 31 October 2026.
The amendments aim to facilitate more informed and viable resolution of real estate projects, enhance transparency and accountability, and strengthen the interests of homebuyers and other stakeholders in the insolvency resolution process.
One bank account per project; RERA fund discipline
It has been mandated that a separate bank account shall be operated for each real estate project of the corporate debtor. The resolution professional shall also place project-wise statements of receipts and payments and other financial information before the Committee of Creditors, at such intervals as considered appropriate by the Committee.
Compliance with fund utilisation requirements under the Real Estate (Regulation and Development) Act, 2016 (RERA) shall be ensured during the corporate insolvency resolution process. The press release states that this keeps each project's funds on that project, bringing greater financial discipline and building the confidence of homebuyers and creditors.
A project can be excluded — on a 66% vote and a tribunal's say
Where a corporate debtor has multiple real estate projects, the resolution professional shall place project-wise information — including RERA registration details, stage of completion, status of possession and occupancy, and details of completed and incomplete units — before the Committee of Creditors in its first meeting.
Based on this information, the Committee of Creditors may, with at least 66% voting share, recommend to the Adjudicating Authority the exclusion of any real estate project from the corporate insolvency resolution process, along with recorded reasons. Pursuant to such a recommendation, the resolution professional shall file an application before the Adjudicating Authority along with the reasons recorded by the Committee. The press release states that this minimises disruption to completed and occupied projects and focuses resolution efforts on projects that genuinely require intervention.
Independent cost-to-complete assessment before bids are invited
The resolution professional, with prior approval of the Committee of Creditors, shall appoint one or more suitably qualified and independent professionals to undertake a project-wise technical and cost-to-complete assessment before inviting expressions of interest. The assessment shall cover the physical status of construction, regulatory approvals, sold and unsold inventory, estimated completion costs, funding requirements, timelines and risks affecting completion.
The assessment shall form part of the Information Memorandum and be made available to prospective resolution applicants. The costs incurred for conducting the assessment shall form part of the insolvency resolution process costs. The press release states that this gives all stakeholders a common, credible baseline on completion cost and time, reducing information asymmetry and enabling more realistic bids.
What the Information Memorandum must now disclose
The Information Memorandum shall contain comprehensive project-wise information, including details of sanctioned, completed and under-construction units; sold and unsold inventory; construction progress, including the stage of completion of common areas, common facilities and amenities; statutory approvals and permissions; permissible development area; encumbrances and lender-wise details of charges; pending litigations and statutory dues; regulatory status, including pending regulatory proceedings, penalties and complaints; and the balance in the designated RERA bank account. It shall also include details of allottees whose claims are reflected in the books of accounts of the corporate debtor or RERA records but who have not submitted claims to the resolution professional, and project-wise details of allottees seeking possession, refund, conveyance or other relief, along with the number of allottees who have not indicated any preference.
Homebuyers get a louder voice — and a seat at implementation
The amendments provide for greater participation of authorised representatives of creditors in a class such as homebuyers. The choice of authorised representatives offered to a class of creditors shall be accompanied by their brief profiles and information regarding their roles and duties. Authorised representatives shall submit minutes of their meetings with creditors to the resolution professional, who shall place them before the Committee of Creditors in its next meeting, and the minutes of Committee meetings shall also record the views, concerns and opinions expressed by authorised representatives on behalf of creditors in a class.
Where the corporate debtor has real estate projects, the monitoring committee constituted for implementation of the resolution plan shall include the authorised representative of creditors in a class or another representative of allottees chosen by majority vote. It shall also include representatives of the concerned RERA and the competent authority, wherever applicable, subject to their agreement. Every resolution plan in respect of a corporate debtor having real estate projects shall provide project-wise details of sanctioned, constructed and under-construction units, with segregation of sold and unsold units, and specify the treatment of allottees' claims — including through possession, execution of conveyance deeds, registration or transfer of title, refund or other appropriate means — as well as project-wise, phase-wise or tower-wise timelines for completion and delivery of possession and periodic progress reporting to the monitoring committee. The plan shall also provide for the treatment of allottees who have not submitted claims but whose details are included in the Information Memorandum.
The amendments also give the Committee of Creditors flexibility in approving requests from homebuyers for handover of possession of their plots, apartments or buildings and facilitation of registration under Regulation 4E: the Committee may either approve each request individually or grant an in-principle approval authorising the resolution professional to process all such requests, as and when received, during the insolvency process.
BANTHRY ANALYSISWhy project-wise treatment changes the homebuyer's position
Under the old all-or-nothing frame, one troubled project could freeze every project of a developer, including completed and occupied ones. The amendment breaks the insolvency into project-sized pieces at three points: money stays project-wise through separate bank accounts, information is project-wise through the assessment and the Information Memorandum, and exit is project-wise through the 66% exclusion recommendation.
Two limits keep the change honest. First, exclusion is a recommendation, not a right: the Adjudicating Authority decides, so a committee cannot quietly hive off the good project and leave creditors with the bad one. Second, the release says nothing about cases admitted before 30 October 2026, so whether a developer already in insolvency can use the new route will turn on the notification's own terms and, eventually, on tribunal decisions.
BANTHRY ANALYSISFor law students
This amendment is a study in how the IBC and RERA now work together rather than in parallel: RERA supplies the project-level discipline — separate accounts, fund utilisation, registration details — while the IBC supplies the collective process — the committee vote, the resolution professional, the tribunal's approval. Note how a dispersed class of homebuyers converts individual grievances into a recorded committee position: through the authorised representative mechanism, whose minutes must now reach the committee. The resolution professional also continues in office until the Adjudicating Authority decides a withdrawal application under section 12A of the Code, and the valuation confidentiality obligation now covers valuation reports as well as fair value and liquidation value.
READING PROMPTSQuestions for a closer reading
- What voting threshold must the committee of creditors reach to recommend excluding a real-estate project from insolvency, and who makes the final decision?
- What must the resolution professional do before inviting expressions of interest, and what does that assessment cover?
- How do the amendments strengthen homebuyers' participation in the insolvency process?
