1.62 Lakh Homebuyers Receive Flats Through IBC Resolution: Finance Minister
Union Finance Minister Nirmala Sitharaman spoke in the Rajya Sabha during the second part of the Budget session of Parliament, emphasizing the effectiveness of the Insolvency and Bankruptcy Code (IBC) in resolving real estate cases. According to Sitharaman, the IBC enables project-wise resolution, allowing homebuyers to receive possession of their flats even while insolvency proceedings are underway.
While replying to the discussion on the IBC Bill in Rajya Sabha, Sitharaman stated, “The resolution professional (RP), after obtaining approval of the Committee of Creditors (CoC) and upon fulfillment of all obligations by the homebuyers, can now hand over possession of plots, apartments, or buildings to the homebuyers while the Corporate Insolvency Resolution Process (CIRP) is still ongoing. It’ll be a significant relief for the middle class.”
Addressing concerns over delays in real estate insolvencies, Sitharaman explained that the 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. This approach aims to fast-track resolutions in cases where projects vary in completion status.
Sitharaman also clarified that the CoC can now invite relevant land authorities, such as NOIDA and HUDA, to their meetings for inputs and perspectives on regulatory and land development matters. Upon meeting certain conditions and with CoC approval, possession of flats, plots, or buildings can be handed over to the buyers during the CIRP, without waiting for its conclusion. Additionally, 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 in Parliament, 1.62 lakh homebuyers have received relief through 111 resolved real estate cases so far. Around 90,000 homebuyers 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, further strengthening the legal framework to protect homebuyers and ensure timely resolution of insolvency cases in the real estate sector.
