Real Estate

IBC Reforms for Real Estate: What Homebuyers and Developers Should Know

By GeoSquare News Desk · Published 2026-10-13

The Insolvency and Bankruptcy Code (IBC) has been a difficult route for real estate. Homebuyers were recognised as financial creditors in 2018, but project delays and complex claims often left them waiting. New proposals seek to fix this by creating a sector-specific insolvency framework for real estate.

What is being proposed?

The proposed changes aim to treat a real estate project as a unit, rather than the developer company as a whole. This would allow stalled projects to be revived or completed separately, protecting homebuyers' money and reducing the risk of the entire company being dragged into insolvency over one project.

Impact on homebuyers

For Maharashtra homebuyers, a project-wise resolution could mean faster decisions and clearer timelines. The proposals also look at forming a committee of creditors that includes homebuyer representatives, giving allottees a stronger voice in the resolution process.

What developers should watch

Developers may get a more predictable framework to restructure debt and complete projects. However, the bar for initiating insolvency could be stricter, and compliance with RERA will likely remain a key factor in any resolution plan.