IBBI CIRP Fifth Amendment Regulations 2026: Project-Wise Rules for Real Estate Insolvency
The Insolvency and Bankruptcy Board of India has notified the IBBI (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2026 on 30 October 2026, rewriting how a corporate insolvency resolution process (CIRP) runs when the corporate debtor is a real estate developer. The IBBI CIRP Fifth Amendment Regulations 2026 make every project its own unit of account, let the committee of creditors (CoC) carve a project out of the process with a 66% vote, require an independent cost-to-complete study before resolution plans are invited, and give homebuyers a seat on the committee that monitors plan implementation. The Board announced the changes through Press Release No. IBBI/PR/2026/18 dated 31 October 2026.
Two circulars issued the same day complete the package. Circular No. IBBI/CIRP/110/2026 tells resolution professionals to comply with the Real Estate (Regulation and Development) Act, 2016 during CIRP, to put up signboards at project sites and offices, and to pull project records from the RERA portal. Circular No. IBBI/CIRP/109/2026 replaces Form CA with a version that has a separate part for real estate allottees. The amendment regulations, notified as IBBI/2026-27/GN/REG155, take effect on publication in the Official Gazette.
Separate bank account and project-wise accounts under substituted regulation 4D
Regulation 4D now requires a separate bank account for each real estate project of the corporate debtor. The resolution professional must place a project-wise statement of receipts and payments before the CoC at intervals the committee decides, along with any other information it asks for. The fund-utilisation requirements under RERA continue to apply during CIRP, so money collected for one project cannot be used to keep another afloat merely because the developer is now under insolvency.
For resolution professionals this is a bookkeeping change with practical weight. Where a developer ran several projects through a single collection account, the professional will have to separate receipts project by project from the insolvency commencement date onward and report them in that form. CoC members and their advisers should expect project-level cash statements at meetings and can fix the reporting frequency themselves.
Excluding a real estate project from CIRP with a 66% CoC vote
New regulation 4F deals with developers that have more than one project. At the first CoC meeting, the resolution professional must place project-wise details: RERA registration, stage of completion, possession and occupancy status, the number of completed and incomplete units and other relevant information. The CoC may then, by a vote of at least 66% of voting share and with reasons recorded, recommend that a particular project be excluded from the CIRP. Once the committee approves, the resolution professional files an application before the Adjudicating Authority, which takes the final call.
The provision gives a regulatory route for what homebuyer groups have often sought in tribunals: a project that is nearly complete or self-funding need not be held up while the rest of the developer's portfolio is resolved. Allottees of such a project will want the project-wise details at the first meeting to be accurate, because the exclusion decision rests on them.
Technical and cost-to-complete assessment before the EOI
Regulation 4G requires the resolution professional, with prior CoC approval, to appoint independent professionals under regulation 27(3) to carry out a project-wise technical and cost-to-complete assessment. The study must cover construction status and percentage of completion, approvals and compliance status, sold and unsold inventory, the cost to complete, milestone-wise funding needs, realistic completion timelines and material risks.
The assessment has to be obtained before the invitation for expression of interest is issued under regulation 36A. It goes into the information memorandum, is shared with prospective resolution applicants, and its cost is treated as insolvency resolution process cost. In practice, the CoC will have to approve the appointment early, since the EOI timeline now depends on this report being ready.
What the information memorandum must now disclose
Clause (ja) of regulation 36(2) has been substituted with a much longer list of project-wise disclosures. The information memorandum must show sanctioned, completed and under-construction units; sold and unsold units; the status of construction and amenities; approvals, permissions and registrations, including those pending, expired or due for renewal; permissible development area; encumbrances and lender-wise charges; pending litigation and statutory dues; regulatory status, penalties and complaints; and the balance in the RERA designated account. It must also carry the regulation 4G assessment.
Two items in the list deal directly with homebuyers. The memorandum must identify allottees whose claims appear in the books or in RERA records but who have not filed claims with the resolution professional, and it must summarise the relief allottees have asked for (possession, refund, conveyance or title transfer, or other relief), including how many expressed no preference. Clause (ka) of regulation 36(2) and its proviso have been omitted. The confidentiality obligation in regulation 35(3) now extends to valuation reports, not only to fair value and liquidation value.
Revised Form CA for real estate allottees from 30 October 2026
Circular IBBI/CIRP/109/2026 partly modifies Circular No. IBBI/CIRP/94/2026 dated 2 June 2026 and splits Form CA, the claim form for financial creditors in a class under regulation 8A, into two parts. Part I is for creditors in a class other than real estate allottees. Part II is for allottees. Claims may be filed in the revised form on or after 30 October 2026, and homebuyers who filed on the earlier form need not file again.
The allottee part of the form is arranged in five sections, summarised below.
| Section of Part II | What the allottee must give |
|---|---|
| I. Allottee particulars | Name, PAN if available (or Aadhaar, passport or a government identity document), address, email and mobile number |
| II. Project and unit details | Project name, RERA registration number, tower or block, unit number, residential or commercial, date of allotment or agreement for sale |
| III. Financial details | Total purchase value, and payment-wise date, amount, mode, principal and interest claimed up to the insolvency commencement date |
| IV. Preference of relief | One option: possession, conveyance deed or transfer of title, refund, or other relief to be specified |
| V. Possession status | Whether possession has been handed over and, if so, the date |
Supporting documents are the agreement for sale or allotment letter, proof of payments, the possession letter if any and any other relevant paper. The preference of relief in Section IV is for information only. The form itself says it gives the allottee no right to that relief and does not bind a successful resolution applicant; what a homebuyer finally gets depends on the resolution plan the Adjudicating Authority approves. The preferences do, however, feed the summary that the information memorandum must now carry, so allottees who leave the section blank will be counted as having no preference.
Signboards at project sites within seven days and RERA records
Circular IBBI/CIRP/110/2026, issued under section 196 of the Insolvency and Bankruptcy Code, 2016, requires the interim resolution professional or resolution professional to disclose the commencement of CIRP through conspicuous signboards at the main entrance or another prominent spot at each project site, and on notice boards at the registered office, corporate office, site office, sales office and any other office accessible to stakeholders. Each board must state that the company is under CIRP and give the name and contact details of the professional. The boards must go up within seven days of appointment, stay until CIRP ends, and be updated forthwith if the professional changes.
The same circular directs the professional, on commencement, to obtain from the RERA portal for each project the registration details, sanctioned plans and approved configurations, registration and extension status, allottee records, the status of the separate RERA bank account, and approvals and compliances. Where the company's own records are incomplete or inconsistent, the professional may rely on RERA records after verification and reconciliation. The professional may also invite the RERA authority to give written views on the compliance, feasibility and implementation of plans before the CoC; any views received go to the committee and to prospective resolution applicants.
Homebuyer representatives, CoC minutes and the monitoring committee
Several amendments strengthen the voice of the authorised representative of a class of creditors. Under substituted regulation 6(2)(bb), creditors in a class must be offered a choice of three insolvency professionals as authorised representative, with a profile link and a brief on the representative's role. Under new regulation 16A(11A), the representative must send the minutes of meetings with the class to the resolution professional, who places them before the next CoC meeting, and new regulation 24(6A) requires CoC minutes to record the views and concerns the representative expresses.
For real estate projects, a further proviso to regulation 38(4)(b) adds to the monitoring committee the class authorised representative or an allottee representative chosen by majority, a representative of RERA and, where applicable, a representative of the competent authority under section 2(p) of the RERA Act, subject to their agreeing to serve. Substituted regulation 38A requires resolution plans for projects to set out project-wise sanctioned, constructed and under-construction units, sold and unsold units separately, how allottee claims will be met (possession, conveyance, refund or other means), how allottees who never filed claims but appear in the information memorandum will be treated, completion and possession timelines by project, phase or tower, and periodic progress reporting to the monitoring committee.
Possession requests under regulation 4E and section 12A withdrawals
An explanation inserted in regulation 4E lets the CoC either approve each allottee's request for possession individually or give a single in-principle approval that allows the resolution professional to process such requests as they come in. For homebuyers in a completed tower, that should cut the wait between a request and a handover that previously needed a fresh CoC resolution each time. A clarification in regulation 30A confirms that the resolution professional keeps discharging CIRP duties until the Adjudicating Authority decides a withdrawal application under section 12A.
Professionals handling ongoing real estate CIRPs should check two things first: whether signboards meeting Circular IBBI/CIRP/110/2026 are already up at every site and office, and whether project-wise bank accounts and receipt statements are in place for the next CoC meeting. Resolution plans still under negotiation will also need to be tested against the new regulation 38A contents before they go to vote.
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