NEW DELHI: Finance Minister Nirmala Sitharaman on Wednesday said that the Insolvency and Bankruptcy Code (IBC) enables project-wise resolution in real estate cases and allow homebuyers to receive possession even while insolvency proceedings are underway.
While replying to the discussion on the IBC Bill in Rajya Sabha, Sitharaman said: “The RP (resolution professional), after obtaining approval of the CoC (Committee of Creditors) and upon fulfilment of all obligations by the homebuyers, can now hand over possession of plots, apartments or buildings to the homebuyers while the CIRP is still ongoing. It'll be a really big relief for the middle-class.”
Addressing concerns over delays in real estate insolvencies, Sitharaman said the Committee of Creditors (CoC) can now direct the RP to invite separate resolution plans for different projects within a company, such as individual towers in a housing complex to fast-track resolutions in cases where projects vary in completion status.
She clarified that CoC can now invite relevant land authorities such as NOIDA and HUDA to their meetings for inputs and perspectives on regulatory and land development related matters.
Upon meeting certain conditions and with CoC approval, possession of flats, plots or buildings can be handed over to the buyers during the corporate insolvency resolution process (CIRP), without waiting for its conclusion. Alongside, the properties that have already been handed over to allottees will not be treated as part of the liquidation estate of the developer.
As per the data presented at the Parliament, 1.62 lakh homebuyers have got relief through 111 resolved real estate cases so far, while around 90,000 are part of 210 ongoing cases. Of these, 87 cases are awaiting approval of resolution plans before the National Company Law Tribunal (NCLT) and are expected to be cleared in the coming months, potentially benefiting about 50,000 homebuyers.
The Rajya Sabha passed the Insolvency and Bankruptcy Code (Amendment) Bill, 2026 on Wednesday.