The Insolvency and Bankruptcy Board of India (IBBI/Board) has notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Amendment) Regulations, 2025 (Amendment Regulations) on 3rd February 2025. The amendments, which come into immediate effect, seek to further streamline the corporate insolvency resolution process with a special focus on real estate projects. 

 Key highlights of the Amendment Regulations are as follows:

Handing Over Possession: The Resolution Professional, with CoC approval, can transfer possession of properties to homebuyers during the resolution process, reducing delays.

Appointment of Facilitators: Facilitators can be appointed to assist large creditor groups like homebuyers, ensuring effective participation in the resolution process.

Participation of Competent Authority in Real Estate Projects: CoC can invite land authorities (e.g., NOIDA, HUDA) for insights on regulatory and development matters, improving resolution plan feasibility.

Report on Real Estate Development Rights and Permissions: Resolution Professionals must submit a report on project approvals and permissions within 60 days of insolvency commencement for informed decision-making.

Relaxations for Real Estate Allottees: CoC can ease eligibility and financial conditions for homebuyer associations to participate as resolution applicants.

Monitoring Committee: CoC must consider forming a monitoring committee to oversee resolution plan implementation, ensuring accountability and timely execution.

MSME Registration Status: Resolution Professionals must disclose the corporate debtor’s MSME registration status, enabling eligible applicants to avail benefits under the Code.

Link – https://ibbi.gov.in/uploads/press/f56716ecf9231742a5a4e79c1f703502.pdf