The Insolvency and Bankruptcy Board of India (IBBI), on April 8, 2026, through Press Release announced that the Committee on Framing Guidelines for Insolvency Proceedings in the Real Estate Sector has submitted its report to the Chairperson, Ravi Mital, on April 7, 2026. The Committee was constituted pursuant to directions of the Supreme Court of India in the case of Mansi Brar Fernandes v. Shubha Sharma & Ors., mandating the development of sector-specific insolvency guidelines in consultation with Real Estate Regulatory Authorities (RERAs).
Chaired by Jayanti Prasad, the Committee included representatives from key institutions such as the Ministry of Corporate Affairs, Ministry of Housing and Urban Affairs, and various RERAs. It adopted a consultative approach involving financial institutions, homebuyer associations, insolvency professionals, and industry stakeholders, along with analysis of judicial precedents and real-world insolvency cases.
The report highlights the unique nature of real estate insolvency, emphasizing that homebuyers primarily seek completion and possession of homes rather than financial recovery. Accordingly, it recommends a shift from an entity-centric to a project-centric, completion-driven approach, along with stronger alignment between the Insolvency and Bankruptcy Code and the Real Estate (Regulation and Development) Act, 2016. The Committee examined 55 issues and made 155 recommendations aimed at improving timelines, enhancing stakeholder confidence, and ensuring efficient resolution of real estate projects.
[Press Release No. IBBI/PR/2026/7]
