IBBI sets project-wise accounts, exclusion of projects and plan contents for real estate insolvencies
TaxByKK · Compliance News · taxbykk.com30 Oct 2026
In short
The Insolvency and Bankruptcy Board of India has notified the Fifth Amendment to its CIRP Regulations, 2016, with new rules for the insolvency of companies that have real estate projects. They came into force on publication in the Gazette on 30 October 2026, and sit alongside IBBI's circulars of the same day on homebuyers' claim forms and RERA compliance.
- Authority
- Insolvency and Bankruptcy Board of India (IBBI)
- Notification
- No. IBBI/2026-27/GN/REG155 dated 30 October 2026; Gazette of India Extraordinary, Part III Section 4, No. 644
- Type
- Regulations
- Effective from
- 30 October 2026 (date of publication)
- Law
- Insolvency and Bankruptcy Code, 2016, section 196(1)(aa) and (t) read with section 240
- Amends
- IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016; last amended on 8 June 2026
What changed
| Item | Before | Now |
|---|---|---|
| Regulation 4D: money for each project | — | A separate bank account for each real estate project, project-wise receipts and payments placed before the committee, and RERA fund-use rules followed |
| Regulation 4E: allottees' requests | — | The committee may approve each allottee's request, or give one in-principle approval for the RP to process all of them |
| Regulation 4F: excluding a project | — | With several projects, the RP gives project-wise details at the first committee meeting; a vote of at least 66% can recommend excluding a project, which the RP then takes to the Adjudicating Authority |
| Regulation 4G: cost to complete | — | Independent professionals assess each project's construction status, approvals, inventory, cost, funding and timelines before the expression of interest is issued |
| Regulation 38: monitoring committee | — | Must also include a representative of the allottees and, if they agree, a representative of RERA and of the competent authority |
| Regulation 38A: contents of a resolution plan | — | Project-wise units, treatment of allottees' claims, timelines by project, phase or tower, and periodic progress reports |
Other changes in the same regulations: creditors in a class are offered a choice of three insolvency professionals as authorised representative (regulation 6); the authorised representative's minutes go to the RP and the next committee meeting, and meeting minutes record the representative's views (regulations 16A and 24); the RP keeps working until the Adjudicating Authority decides a section 12A withdrawal application (regulation 30A); valuation reports go with the fair and liquidation values (regulation 35); and the information memorandum must carry project-wise details such as units, stage of completion, approvals, encumbrances and litigation (regulation 36). The cost-to-complete assessment goes into the information memorandum, and its cost counts as insolvency resolution process cost. The regulations follow IBBI's committee on insolvency in the real estate sector (April 2026).
Who it applies to
- Insolvency professionals acting as IRP or RP in real estate cases
- Committees of creditors, including homebuyer representatives
- Resolution applicants and developers
- RERA authorities, homebuyers' lawyers and CAs advising them
What to do
- Open a separate bank account for each real estate project of the corporate debtor and report project-wise to the committee.
- At the first committee meeting, place project-wise RERA registration, stage of completion, possession status and unit counts before the committee.
- Appoint independent professionals for the cost-to-complete assessment before issuing the expression of interest.
- Draft resolution plans with project-wise units, allottee treatment and tower-wise timelines, and set up a monitoring committee with allottee and RERA members.
Reference
IBBI notification No. IBBI/2026-27/GN/REG155, 30 October 2026, Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2026; Gazette of India Extraordinary, Part III Section 4, No. 644. Published in Hindi and English; the summary above follows the English text.
Read the official PDF: IBBI regulationsWritten by TaxByKK from the official notification. Check the official text before you act on it.
Frequently asked questions
What do the CIRP Fifth Amendment Regulations 2026 change?
They add rules for companies with real estate projects: project-wise bank accounts, exclusion of a project by a 66% creditor vote, cost-to-complete assessments, a monitoring committee with allottee and RERA members, and project-wise contents in resolution plans.
From when do they apply?
From 30 October 2026, the date of publication in the Gazette.
Can one project be taken out of the insolvency process?
Yes. A vote of at least 66% of the committee can recommend excluding a real estate project, and the RP applies to the Adjudicating Authority with the committee's reasons.
Who sits on the monitoring committee for a real estate case?
Besides the usual members, a representative of the allottees (or creditors in a class) and, if they agree, a representative of the RERA and of the competent authority.