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The Insolvency and Bankruptcy Board of India (IBBI) has received a report from its committee formed to frame sector-specific insolvency guidelines for the real estate sector following directions issued by the Supreme Court in September 2025. The committee examined challenges linked to stalled housing projects, homebuyer protection and delays in insolvency resolution processes, recommending a shift towards a project-centric and completion-driven framework. According to the report, the panel reviewed 55 major issues and proposed 155 recommendations aimed at improving coordination between insolvency proceedings and the Real Estate (Regulation and Development) Act, 2016, while strengthening safeguards for homebuyers and project completion timelines.
The Insolvency and Bankruptcy Board of India (IBBI) has received a report from a committee constituted to frame sector-specific insolvency guidelines for the real estate sector, following directions issued by the Supreme Court in September last year regarding resolution mechanisms for stalled housing projects and protection of homebuyers. Advertisement
According to the press release issued by IBBI on 8 April 2026, the committee submitted its report to IBBI Chairperson Ravi Mital on 7 April after conducting consultations with financial institutions, homebuyer associations, insolvency professionals, industry representatives and regulatory authorities.
The committee had been constituted pursuant to the Supreme Court’s judgment dated 12 September 2025 in the matter of Mansi Brar Fernandes v. Shubha Sharma & Ors., in which the court directed IBBI, in consultation with Real Estate Regulatory Authorities (RERAs), to formulate guidelines for insolvency proceedings in the real estate sector. The court had specifically sought recommendations relating to project-wise corporate insolvency resolution processes and safeguards for homebuyers.
The panel was chaired by Jayanti Prasad, Whole Time Member, IBBI, and included representatives from the Ministry of Corporate Affairs, Ministry of Housing and Urban Affairs, RERA Uttar Pradesh, RERA Haryana (Gurugram), the All India Forum of RERAs and Haryana Shahri Vikas Pradhikaran.
According to the report, the committee examined operational and legal challenges associated with real estate insolvency proceedings, particularly in cases involving incomplete housing projects and delayed possession timelines. The panel noted that real estate insolvency differs from conventional corporate insolvency because homebuyers primarily seek project completion and possession of homes rather than financial recovery alone.
The committee recommended transitioning from an entity-centric recovery framework towards a project-centric and completion-driven approach while improving coordination between the Insolvency and Bankruptcy Code (IBC) and the Real Estate (Regulation and Development) Act, 2016.
According to the release, the panel reviewed 55 key issues affecting real estate insolvency and proposed 155 recommendations covering structural, procedural and institutional aspects of the insolvency framework. The recommendations are intended to improve efficiency in resolution processes, strengthen stakeholder confidence and support timely completion of housing projects.
The committee also undertook analysis of judicial precedents, empirical data and practical experiences from past insolvency cases while preparing the framework. Extensive consultations were conducted with successful resolution applicants, former adjudicating authority members and domain experts associated with the real estate and insolvency ecosystem.
The proposed framework comes amid continuing concerns regarding stalled housing projects, delayed delivery timelines and recovery challenges faced by homebuyers across multiple insolvency proceedings involving real estate developers in India.
Source- IBBI Government
5th Jun, 2025
25th May, 2023
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