Insolvency and Bankruptcy Board of India (IBBI) has introduced amendments to the Insolvency Resolution Process for Corporate Persons Regulations, 2016, effective from their publication date in the Official Gazette. Key changes include provisions for handing over possession in real estate projects, requiring resolution professionals to facilitate the transfer of properties upon approval by 66% of the creditors. A new regulation introduces facilitators to assist in large creditor groups, with specified roles, limits on appointments, and fee structures. The amendments also mandate that resolution professionals prepare reports on the status of real estate development rights and permissions, submitting them to the committee and the Adjudicating Authority within 60 days of insolvency commencement. Additionally, the committee overseeing a corporate debtor’s insolvency may now invite relevant real estate regulatory authorities to meetings for project-related inputs. Other significant modifications include the introduction of monitoring committees to supervise resolution plan implementation and quarterly reporting to the Adjudicating Authority. The regulations now also require details on corporate debtors’ registration under the MSME Act and allow committees to relax performance security requirements for real estate allottees. These amendments aim to enhance transparency, creditor representation, and operational efficiency in corporate insolvency cases.
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION
New Delhi, 3rd February, 2025
Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Amendment) Regulations, 2025.
F.No. IBBI/2024-25/GN/REG122.—In exercise of the powers conferred by clause (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) (Amendment) Regulations, 2025.
(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’), after regulation 4D, the following regulation shall be inserted, namely:-
“4E. Handing over the possession.
After obtaining the approval of the committee with not less than sixty-six percent of total votes, the resolution professional shall hand over the possession of the plot, apartment, or building or any instruments agreed to be transferred under the real estate project and facilitate registration, where the allottee has requested for the same and has performed his part under the agreement.”
3. In the principal regulations, after regulation 16B, the following regulations shall be inserted, namely:-
“16C. Appointment of facilitators.
(1) Where the number of creditors in a class exceeds one thousand, the committee may, direct the interim resolution professional or resolution professional, as the case may be, to appoint an insolvency professional other than the interim resolution professional, resolution professional and authorised representative, or any other person, as facilitator for a sub-class within the creditors in a class, subject to the following conditions :-
(a) the appointment of facilitator shall be considered only if, after the first meeting of the committee, a sub-class comprising of at least one hundred creditors out of the total number of creditors in a class, request for the inclusion of an agenda for such appointment along with the name of the proposed facilitator;
(b) the total number of facilitators shall not exceed five; and
(c) the fee for facilitator for each sub-class shall be twenty per cent. of the fees specified for the authorised representative and such fee shall be part of the insolvency resolution process cost.
(2) The committee may replace the facilitator on the recommendation of a majority of the members of the sub-class.
16D. Roles and responsibilities of the facilitator.
The roles and responsibilities of the facilitator(s) shall include the following:-
(a) facilitating communication between the authorised representative and the creditors of the sub-class;
(b) attending the meetings of the committee, as observers, to facilitate communication between creditors of the respective sub-class;
(c) providing information and clarifications to the creditors in a sub-class about the insolvency resolution process, as per advice of the authorised representative; and
(d) any other tasks assigned by the committee to improve representation and communication.”
4. In the principal regulations, in regulation 18, after sub-regulation (3), the following sub-regulation shall be inserted, namely:-
“(4) Where the corporate debtor has any real estate project, the committee may direct the resolution professional to invite the ‘competent authority’ as defined in clause (p) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016) related to such project to attend such meeting(s) of the committee, as the committee may decide, without voting rights, for providing inputs on matters associated with the development of such project.”
5. In the principal regulations, after regulation 30B, the following regulation shall be inserted, namely:-
“30C. Report on the status of development rights and permissions of real estate projects.
Where the corporate debtor has any real estate project, the resolution professional shall:
(a) prepare a report detailing the status of development rights and permissions required for development of such project;
(b) submit the report to the committee for its comments; and
(c) submit to the Adjudicating Authority, the report referred to in clause (a) along with the comments of the committee referred to in clause (b), on or before the sixtieth day from the insolvency commencement date.”
6. In the principal regulations, in regulation 31, after clause (ab), the following clause shall be inserted, namely:-
“(ac) fee payable to facilitator under clause (c) of sub-regulation (1) of regulation 16C.”
7. In the principal regulations, in regulation 36A, in sub-regulation (4),
(i) in clause (c), for the mark and word “; and”, the mark “;” shall be substituted.
(ii) in clause (d), for the mark and word “interest.”, the words and mark “interest; and” shall be substituted.
(iii) after clause (d), the following clause shall be inserted, namely: –
“(e) provide details of the corporate debtor’s registration status as a micro, small, or medium enterprise in accordance with the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006).”
(iv) after clause (e) so inserted, the following proviso shall be inserted, namely: –
“Provided that where the corporate debtor has any real estate project, the committee, for an association or group of allottees in such real estate project, representing not less than ten per cent. or one hundred creditors out of the total number of creditors in a class, whichever is lower, may relax the following:
(a) eligibility criteria for submission of expression of interest provided in clause (a) above; and
(b) conditions regarding the refundable deposit.”
8. In the principal regulations, in regulation 36B, in sub-regulation (4A),
(i) for the words and mark “implementation schedule.”, the words and mark “implementation schedule:”, shall be substituted.
(ii) the following proviso shall be inserted, namely:-
“Provided that where the corporate debtor has any real estate project, the committee may relax the requirement to provide for performance security for an association or group of allottees in such real estate project, representing not less than ten per cent. or one hundred creditors out of the total number of creditors in a class, whichever is lower.”
9. In the principal regulations, in regulation 38, for sub-regulations (4) and (5), the following sub-regulation shall be substituted, namely:-
“(4) (a) The committee shall consider setting up a monitoring committee for monitoring and supervising the implementation of the resolution plan.
(b) The monitoring committee may consist of the resolution professional or any other insolvency professional, or any other person, including representatives of the committee and representatives of resolution applicant(s), as its members:
Provided that where the resolution professional is proposed to be part of the monitoring committee, the monthly fee payable to him shall not exceed the monthly fee received by him during the corporate insolvency resolution process.
(c) The monitoring committee shall submit quarterly reports to the Adjudicating Authority regarding the status of implementation of resolution plan.”
10. In the principal regulations, in Schedule-I, in Form G, after row number 16, the following row shall be inserted, namely: –
“
| SL. | RELEVANT PARTICULARS |
| 17. | Details of the corporate debtor’s registration status as MSME. |
”
RAVI MITAL, Chairperson
[ADVT.-III/4/Exty./947/2024-25]
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) (Second Amendment) Regulations, 2024 published vide notification No. IBBI/2024-25/GN/REG116, dated the 24th September, 2024 in the Gazette of India, Extraordinary, Part III, Section 4, No. 752 on 24th September, 2024.
