Government to Form Committee for Systemic Reforms to Revive Stalled Housing Projects
The Ministry of Corporate Affairs (MCA) is set to establish a committee to propose policy reforms aimed at accelerating the completion of stalled real estate projects and improving debt resolution efficiency. The committee will focus on restoring public trust in the housing market, where over Rs 4 trillion in investments are currently stuck.
Real EstateHousing ProjectsMinistry Of Corporate AffairsPolicy ReformsInsolvencyReal Estate NewsNov 10, 2025
Two people familiar with the development told The Mint that the panel will include representatives from multiple ministries and regulatory agencies. Its objective is to restore public trust in the housing market, where more than Rs 4 trillion in investments were stuck as of July 2023, covering around 4.12 lakh stressed housing units, according to an expert committee led by former G20 Sherpa Amitabh Kant. Over half of these stalled homes—about 2.4 lakh—are located in the National Capital Region.
The proposed committee will be separate from the one recently formed by the Insolvency and Bankruptcy Board of India (IBBI) to explore project-wise insolvency resolutions instead of the existing company-level approach, The Mint noted in an earlier report on November 3. Members of the new committee will include officials from the ministries of law and housing and urban affairs, think tank National Institute of Urban Affairs, IBBI, and the Department of Financial Services.
One person cited by The Mint said the panel's formalities are underway, with an initial inter-ministerial meeting held last week to discuss sectoral distress. The committee is expected to be finalized shortly and deliver its recommendations within six months. The initiative aims to address the significant issues in the real estate sector and provide a structured approach to resolving the financial and operational challenges faced by developers and homebuyers.
The real estate sector has been grappling with numerous issues, including delayed project completions, financial distress, and a lack of trust among buyers. These systemic reforms are expected to provide a much-needed boost to the sector, helping to revive stalled projects and restore confidence among stakeholders.
Frequently Asked Questions
What is the main objective of the new committee?
The main objective of the new committee is to propose policy reforms aimed at accelerating the completion of stalled real estate projects, reviving insolvent developers, and improving debt resolution efficiency.
How much investment is currently stuck in stalled housing projects?
As of July 2023, over Rs 4 trillion in investments are stuck in stalled housing projects, covering around 4.12 lakh stressed housing units.
Where are most of the stalled housing projects located?
Over half of the stalled homes, about 2.4 lakh, are located in the National Capital Region.
What is the difference between the new committee and the one formed by the IBBI?
The new committee will focus on systemic reforms and policy changes, while the IBBI committee will explore project-wise insolvency resolutions instead of the existing company-level approach.
What is the expected timeline for the committee to deliver its recommendations?
The committee is expected to be finalized shortly and deliver its recommendations within six months.
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