Summary: The Insolvency and Bankruptcy Board of India (IBBI) has notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2026, on 30 October 2026. The amendment introduces significant changes to the corporate insolvency resolution process (CIRP), particularly for corporate debtors having real estate projects. It requires separate bank accounts for individual real estate projects, periodic project-wise statements of receipts and payments, and compliance with fund utilisation requirements under the Real Estate (Regulation and Development) Act, 2016. The amendments also provide a mechanism for recommending the exclusion of individual real estate projects from CIRP with the approval of at least 66% of the committee of creditors’ voting share. Resolution professionals must obtain independent technical and cost-to-complete assessments before inviting expressions of interest and incorporate those assessments into the information memorandum. Additional changes strengthen the representation of creditors in a class, require recording their authorised representatives’ views in committee meetings, clarify the resolution professional’s continuing responsibilities during withdrawal applications under section 12A, and expand disclosures in information memoranda. The amendment also prescribes additional requirements for monitoring committees and mandatory project-wise contents of resolution plans, including treatment of allottees’ claims, possession, conveyance, refunds and project completion timelines.
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION
New Delhi, the 30th October, 2026
Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2026.
No. IBBI/2026-27/GN/REG155.— In exercise of the powers conferred under clauses (aa) and (t) of sub-section (1) of section 196 read with section 240 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Insolvency and Bankruptcy Board of India hereby makes the following regulations to further amend the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, namely:-
1. (1) These regulations may be called the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2026.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (hereinafter referred to as ‘the principal regulations’), for regulation 4D, the following regulation shall be substituted, namely:-
“4D. Project-wise records and fund utilisation.
1. Where a corporate debtor has any real estate project, the interim resolution professional or the resolution professional, as the case may be, shall operate a separate bank account for each real estate project.
2. The interim resolution professional or the resolution professional, as the case may be, shall place before the committee, at such intervals as may be considered appropriate by the committee, a project-wise statement of receipts and payments, and such other financial information relating to such real estate project as may be required by the committee.
3. The interim resolution professional or the resolution professional, as the case may be, shall ensure that, in respect of every real estate project of the corporate debtor, the fund utilisation requirements provided under the Real Estate (Regulation and Development) Act, 2016 are complied with during the corporate insolvency resolution process.”
3. In the principal regulations, in regulation 4E, the following explanation shall be inserted as under:-
“Explanation – For the purposes of this regulation, the committee may either decide to grant approval in respect of each request made by an individual allottee, to the resolution professional, or grant an in-principle approval, authorising the resolution professional to process all such requests as and when they are received during the corporate insolvency resolution process.”
4. In the principal regulations, after regulation 4E, the following regulations shall be inserted, namely:-“4F. Identification and exclusion of real estate projects.
(1) Where the corporate debtor has more than one real estate project, the resolution professional shall place in the first meeting of the committee, following project-wise details of all real estate projects of the corporate debtor –
a. RERA registration details;
b. stage of completion;
c. status of possession and occupancy;
d. number of completed and incomplete units; and
e. such other information as considered necessary for assessment of such real estate project.
f. The committee may, after considering the information placed before it under sub-regulation (1), by a vote of not less than sixty-six per cent of voting share, recommend to the Adjudicating Authority along with the reasons to be recorded, for its consideration, the exclusion from the corporate insolvency resolution process of any real estate project.
g. Pursuant to approval of the committee under sub-regulation (2), the resolution professional shall make an application along with the reasons recorded by the committee before the Adjudicating Authority.
4G. Technical and cost-to-complete assessment of real estate projects.
(1) Where a corporate debtor has any real estate project, the resolution professional shall, with the prior approval of committee, appoint one or more suitably qualified and independent professionals, in accordance with sub-regulation (3) of regulation 27, to undertake a project-wise technical and cost-to-complete assessment of such project.
(2) The assessment referred to in sub-regulation (1) shall, to the extent applicable, include –
a. physical status of construction and percentage of completion of the project;
b. status of approvals, registrations, permissions and regulatory compliances relating to the project;
c. details of inventory, including sold and unsold units;
d. estimated cost required for completion of the project and its phases;
e. milestone-wise funding requirements;
f. realistic timelines for completion and delivery of the project;
g. material risks and constraints affecting completion of the project; and
h. such other information as considered necessary.
(3) The resolution professional shall obtain the assessment referred to in sub-regulation (1) before issuance of the invitation for expression of interest under regulation 36A.
(4) The assessment shall be incorporated in the information memorandum and made available to prospective resolution applicants.
(5) The costs incurred for conducting the assessment under this regulation shall form part of the insolvency resolution process costs.”
5. In the principal regulations, in regulation 6, in sub-regulation (2), for clause (bb), the following clause shall be substituted, namely:-
“(bb) offer choice of three insolvency professionals identified under regulation 4A to act as the authorised representatives of creditors in each class along with a link to the brief profile of the proposed authorised representatives as well as a brief about the role and duties of an authorised representative under the Code and these Regulations; and”.
6. In the principal regulations, in regulation 16A, after sub-regulation (11), the following sub-regulation shall be inserted, namely:-
“(11A) The authorised representative of creditors in a class shall submit the minutes referred to in clause (i) of sub-regulation (10) of regulation 16A to the resolution professional, and the resolution professional shall place the same before the committee in its next meeting.”
7. In the principal regulations, in regulation 24, after sub-regulation (6), the following sub-regulation shall be inserted, namely:-
“(6A) Where creditors in a class are represented through an authorised representative, the minutes of the meeting shall record the views, concerns and opinions expressed in the meeting by the authorised representative on behalf of such creditors in class.”
8. In the principal regulations, in regulation 30A, after sub-regulation (1), the following clarification shall be inserted, namely:-
“Clarification: It is clarified that the resolution professional shall continue to discharge his responsibilities under the corporate insolvency resolution process, till the application for withdrawal under section 12A is decided by the Adjudicating Authority.”
9. In the principal regulations, in regulation 35, in sub-regulation (3), for the words “fair value and the liquidation value”, the words and mark “fair value, the liquidation value and valuation reports” shall be substituted.
10. In the principal regulations, in regulation 36, in sub-regulation (2), –
(a) for clause (ja), the following clause shall be substituted, namely:-
“(ja) in case of a corporate debtor having a real estate project, project-wise details, including –
a. total number of units sanctioned in the project, with segregation of completed units and units under construction;
b. total number of units in the project, with details of sold and unsold units;
c. stage of completion of the project or its phases, including percentage of construction completed;
d. stage of completion of common areas, common facilities and other amenities in the project, as applicable;
e. details of statutory approvals, permissions and registrations applicable to the project, including those obtained, pending, expired or due for renewal;
f. the permissible development area of the project, where applicable;
g. project-wise encumbrances, and lender-wise details of charges created, on the project;
h. pending litigations and statutory dues in relation to the project;
i. the regulatory status of the project, including pending regulatory proceedings, penalties imposed, complaints filed, and the balance in the designated bank account maintained under the Real Estate (Regulation and Development) Act, 2016;
j. the technical and cost-to-complete assessment under regulation 4G;
k. details of all allottees, including their names, amounts due, and units allotted, whose claims though reflected in the books of accounts of the corporate debtor or in the records of the Real Estate Regulatory Authority as established under the Real Estate (Regulation and Development) Act, 2016 (16 of 2016), have not been submitted to the resolution professional; and
project-wise details of allottees including the number of allottees seeking –
a. possession of unit;
b. refund of amount;
c. execution of conveyance deed, registration or transfer of title;
d. any other relief, as indicated in the claim form, along with the number of allottees who have not indicated any preference;”
(b) in clause (k), after the words and mark “last available financial statements;”, the word “and” shall be inserted.
(c) clause (ka) along-with its proviso, shall be omitted.
11. In the principal regulations, in regulation 38, in sub-regulation (4), in clause (b), after the proviso, the following proviso shall be inserted, namely:-
“Provided further that, where a corporate debtor has any real estate project, the monitoring committee shall, in addition to the members referred to in this sub-regulation, include –
i. authorised representative of the creditors in a class or any other representative of the allottees chosen by their majority vote; and
ii. a representative of the concerned Real Estate Regulatory Authority established under the Real Estate (Regulation and Development) Act, 2016 (16 of 2016) and a representative of the ‘competent authority’ as defined in clause (p) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016), if applicable, subject to their agreement to be member of the monitoring committee.”
12. In the principal regulations, for regulation 38A, the following regulation shall be substituted, namely:-
“38A. Mandatory contents of resolution plan for a corporate debtor having any real estate project.
In respect of a corporate debtor having any real estate project, every resolution plan shall, in addition to the requirements under the Code and these Regulations, provide project-wise details including –
a. total number of units sanctioned, constructed and under construction, with segregation of sold and unsold units;
b. treatment of claims of allottees, by way of possession of units, execution of conveyance deed, registration or transfer of title in respect of unit already handed over or otherwise eligible for conveyance, refund of amount, or in any other manner;
c. where the information memorandum includes the details of the allottees who have not submitted their claims, the resolution plan shall provide for treatment of such allottees;
d. timelines for completion and delivery of possession to be specified project-wise, phase-wise or tower-wise, as applicable; and
e. periodic reporting including submission of progress reports to the Monitoring Committee.”
JAYANTI PRASAD, Chairperson
[ADVT.-III/4/Exty./413/2026-27]
Note: The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 were published vide notification No. IBBI/2016-17/GN/REG004, dated 30th November, 2016 in the Gazette of India, Extraordinary, Part III, Section 4, No. 432 on 30th November, 2016 and were last amended by the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2026 published vide notification No. IBBI/2026-27/GN/REG153, dated the 8th June, 2026 in the Gazette of India, Extraordinary, Part III, Section 4, No. 385 on 9th June, 2026.
