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The Finance Minister highlighted that under the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, the Committee of Creditors (CoC) in real estate insolvency cases can invite land authorities to provide inputs on land and regulatory matters. The law also sets stricter timelines for case admission and resolution plan approvals before tribunals. Of the 565 cases admitted so far, 111 affecting roughly 162,320 homebuyers have been resolved. Another 210 cases are under resolution, with 87 plans awaiting tribunal approval, while some cases are in liquidation or withdrawn.
The Finance Minister informed that a key change in the insolvency process allows the Committee of Creditors (CoC) to include land authorities in discussions regarding real estate insolvency cases. This provision is intended to provide expert guidance on land documentation, compliance, and regulatory issues, helping creditors make informed decisions about resolving stressed projects. The change comes under the Insolvency and Bankruptcy Code (Amendment) Bill, 2025, which was recently passed in Parliament. Advertisement
Sitharaman emphasized that the amendment introduces tighter timelines for admission of insolvency cases and approval of resolution plans before tribunals. Under the new rules, tribunals are expected to admit cases within 14 days of filing and approve resolution plans within 30 days, with reasons to be recorded for any delays. This change is aimed at improving efficiency and ensuring timely resolution of real estate cases.
The amendment allows land authorities to be consulted during CoC meetings. Their participation ensures that all land and regulatory aspects of projects under insolvency are thoroughly reviewed, which was often a missing link in earlier proceedings. This approach is expected to reduce delays in project resolutions and improve outcomes for homebuyers and stakeholders.
Out of the 565 real estate cases admitted so far under the IBC, 111 cases involving about 162,320 homebuyers have already been resolved. A further 210 cases are under resolution, with 87 plans pending tribunal approval. These approvals are expected in the near term, potentially benefiting around 50,000 homebuyers. Around 200 cases have been closed or withdrawn, while 44 cases are currently under liquidation.
Sitharaman also noted that the IBC framework is not designed solely for debt recovery. Its primary objective is to enable structured resolution of stressed real estate projects while resorting to liquidation only when no viable resolution is possible. With the involvement of land authorities, stricter timelines, and a clear procedural framework, the law seeks to accelerate the resolution process and reduce uncertainty for buyers and creditors.
The amendment builds on previous reforms in the real estate sector, including the Real Estate (Regulation and Development) Act (RERA), which brought transparency and accountability. The CoC's ability to involve land authorities complements these reforms by addressing regulatory bottlenecks that previously delayed project completions and settlements.
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