RECENT CHANGES IN THE ‘CIRP’ REGULATION

Fifth amendment

The Insolvency and Bankruptcy Board of India (‘Board’ for short) made many regulations for the purpose of carrying out the provisions of the Insolvency and Bankruptcy Code (‘Code’ for short).  The Board made ‘The Insolvency and Bankruptcy Board of India (Insolvency resolution process for corporate persons) Regulations, 2016’ for carrying out the corporate insolvency resolution process (‘CIRP’ for short).  The said regulations were amended from time to time.  The Board now made its fifth amendment in these Regulations vide Notification No. IBBI/2026-27/GN/REG155, dated 30.10.2026, the provisions of which came into effect from 30.12.2026. 

The following amendments were made in these regulations-

• Substitution of Regulation 4D – Project-wise records and fund utilisation;
• Insertion of explanation to Regulation 4E;
• Insertion of new Regulation 4F – Identification and exclusion of real estate projects;
• Insertion of new Regulation -4G – Technical and Cost-to-complete assessment of real estate projects;
• Substitution Regulation 6(2)(bb) - identification of Authorised Representatives;
• Insertion of new sub-Regulation 16A (11);
• Insertion of new sub regulation 24 (6A);
• Insertion of clarification to Regulation 30A(1);
• Substitution of Regulation 36(2)(ja);
• Insertion of proviso to Regulation 38(4)(b);
• Substitution of Regulation 38A;

Regulation 4D

Regulation 4D provides that where the corporate debtor has any real estate project, the IRP/RP shall operate a separate bank account for each real estate project.

The amendment substituted the Regulation 4D.  The newly substituted Regulation 4D provides that if a corporate debtor has any real estate project, the IRP/RP shall operate a separate bank account for each real estate project.  The IRP/RP shall place before the committee, at such intervals as may be considered appropriate by the committee, a project-wise statement of receipts and payments, and such other financial information relating to such real estate project as may be required by the committee.   The IRP/RP shall ensure that in respect of every real estate project of the corporate debtor, the fund utilisation requirements provided under the Real Estate (Regulation and Development) Act, 2016 are complied with during the corporate insolvency resolution process.

Insertion of explanation to Regulation 4E

Regulation 4E provides that after obtaining the approval of the committee with not less than 66% of total votes, the RP shall hand over the possession of the plot, apartment, or building or any instruments agreed to be transferred under the real estate project and facilitate registration, where the allottee has requested for the same and has performed his part under the agreement. 

The amendment inserted an explanation to this Regulation.  The newly inserted explanation provides that the committee of creditors may either decide to grant approval in respect of each request made by an individual allottee, to the resolution professional, or grant an in-principle approval, authorising the resolution professional to process all such requests as and when they are received during the corporate insolvency resolution process.

Regulation 4F

The newly inserted Regulation 4F provides for the identification and exclusion of real estate projects.  Regulation 4F provides that where the corporate debtor has more than one real estate project, the RP shall place in the first meeting of the committee, following project-wise details of all real estate projects of the corporate debtor –

• RERA registration details;
• stage of completion;
• status of possession and occupancy;
• number of completed and incomplete units; and
• such other information as considered necessary for assessment of such real estate project.

The committee may, after considering the information placed before it under sub-regulation (1), by a vote of not less than sixty-six per cent of voting share, recommend to the Adjudicating Authority along with the reasons to be recorded, for its consideration, the exclusion from the corporate insolvency resolution process of any real estate project.

On the approval of the committee, the RP shall make an application along with the reasons recorded by the committee before the Adjudicating Authority. 

Regulation 4G

The newly inserted Regulation 4G provides that where a corporate debtor has any real estate project, the RP shall, with the prior approval of committee, appoint one or more suitably qualified and independent professionals, in accordance with sub-regulation 27 (3), to undertake a project-wise technical and cost-to-complete assessment of such project.

The assessment shall, to the extent applicable, include –

• physical status of construction and percentage of completion of the project;
• status of approvals, registrations, permissions and regulatory compliances relating to the project;
• details of inventory, including sold and unsold units;
• estimated cost required for completion of the project and its phases;
• milestone-wise funding requirements;
• material risks and constraints affecting completion of the project; and realistic timelines for completion and delivery of the project;
• such other information as considered necessary.

The resolution professional shall obtain the assessment before the  issuance of the invitation for expression of interest under regulation 36A.  The assessment shall be incorporated in the information memorandum and made available to prospective resolution applicants.  The costs incurred for conducting the assessment under this regulation shall form part of the insolvency resolution process costs.

Substitution Regulation 6(2)(bb)

Regulation provides for the issue of public announcement to receive the claims by the IRP immediately after his appointment.  Regulation 6(2)(bb) provides that the public announcement shall offer choice of three insolvency professionals identified under regulation 4A to act as the authorised representative of creditors in each class.  The amendment substituted Regulation 6(2)(bb). 

The newly substituted Regulation 6(2)(bb) provides that    offer choice of three insolvency professionals identified under regulation 4A to act as the authorised representatives of creditors in each class along with a link to the brief profile of the proposed authorised representatives as well as a brief about the role and duties of an authorised representative under the Code and these Regulations.

Insertion of new sub-Regulation 16A (11)

Regulation 16A provides for the appointment of Authorised Representative in the IRP/RP.  Sub Regulation (10) provides the list of duties to be performed by the Authorised Representative.  The amendment inserted a new subsection (11).  The newly substituted Regulation 16A(11) provides that the authorised representative of creditors in a class shall submit the minutes under sub section (10)  to the RP, and the resolution professional shall place the same before the committee in its next meeting.

Insertion of new sub regulation 24 (6A)

Regulation 24 provides the procedure for conducting a meeting by the RP as Chairman of the meeting. 

The amendment inserted a new Regulation 24(6A).  The newly inserted Regulation 24(6A)  provides that where creditors in a class are represented through an authorised representative, the minutes of the meeting shall record the views, concerns and opinions expressed in the meeting by the authorised representative on behalf of such creditors in class.

Insertion of clarification to Regulation 30A(1)

Regulation 30A provides the procedure for withdrawal of application.  The amendment brings a clarification regarding the withdrawal of application.

The clarification inserted to Regulation 30A (1) clarifies that the resolution professional shall continue to discharge his responsibilities under the corporate insolvency resolution process, till the application for withdrawal under section 12A is decided by the Adjudicating Authority.

Substitution of Regulation 36(2)(ja)

Regulation 36 provides for the preparation of Information Memorandum by the RP.  Regulation 36(2)(ja) provides that the information memorandum shall provide the details of all allottees, including their names, amounts due, and units allotted, whose claims are either reflecting in the books of accounts of the corporate debtor or in the records of the Real Estate Regulatory Authority as established under the Real Estate (Regulation and Development) Act, 2016 (16 of 2016), but have not submitted their claims to the resolution professional.

The amendment substituted said sub regulation 36(2)(ja).  The newly substituted Regulation 36(2)(j)  provides that in case of a corporate debtor having a real estate project, project-wise details, including-

• total number of units sanctioned in the project, with segregation of completed units and units under construction;
• total number of units in the project, with details of sold and unsold units;
• stage of completion of the project or its phases, including percentage of construction completed;
• stage of completion of common areas, common facilities and other amenities in the project, as applicable;
• details of statutory approvals, permissions and registrations applicable to the project, including those obtained, pending, expired or due for renewal;
• the permissible development area of the project, where applicable;
• project-wise encumbrances, and lender-wise details of charges created, on the project;
• pending litigations and statutory dues in relation to the project; 
• the regulatory status of the project, including pending regulatory proceedings, penalties imposed, complaints filed, and the balance in the designated bank account maintained under the Real Estate (Regulation and Development) Act, 2016;
• the technical and cost-to-complete assessment under regulation 4G; 
• details of all allottees, including their names, amounts due, and units allotted, whose claims though reflected in the books of accounts of the corporate debtor or in the records of the Real Estate Regulatory Authority as established under the Real Estate (Regulation and Development) Act, 2016 (16 of 2016), have not been submitted to the resolution professional; and

• project-wise details of allottees including the number of allottees seeking –
• possession of unit;
• refund of amount;
• execution of conveyance deed, registration or transfer of title;
• any other relief, as indicated in the claim form,

along with the number of allottees who have not indicated any preference.

Insertion of proviso to Regulation 38(4)(b)

Regulation 38(4)(a) provides for setting up of a monitoring committee for monitoring and supervising the implementation of the resolution plan.  Regulation 38(4)(b) provides that the monitoring committee may consist of the RP or any other insolvency professional, or any other person, including representatives of the committee and representatives of resolution applicant(s), as its members.  The proviso to this section provides that  where the resolution professional is proposed to be part of the monitoring committee, the monthly fee payable to him shall not exceed the monthly fee received by him during the corporate insolvency resolution process.

The amendment inserted the second proviso to this section.  The newly inserted proviso provides that where a corporate debtor has any real estate project, the monitoring committee shall, in addition to the members referred to in this sub-regulation, include –

• authorised representative of the creditors in a class or any other representative of the allottees chosen by their majority vote; and
• a representative of the concerned Real Estate Regulatory Authority established under the Real Estate (Regulation and Development) Act, 2016 and a representative of the ‘competent authority’ as defined in clause (p) of section 2 of the Real Estate (Regulation and Development) Act, 2016, if applicable, subject to their agreement to be member of the monitoring committee.

Substitution of Regulation 38A

Regulation 38A provides for the treatment of allottees not claiming refund.  The said Regulation provides that in respect of a real estate project, where the information memorandum includes the details of the allottees who have not submitted their claims, the resolution plan shall provide for treatment of such allottees.

The newly substituted Regulation 38A through the amendment, provides that in respect of a corporate debtor having any real estate project, every resolution plan shall, in addition to the requirements under the Code and these Regulations, provide project-wise details including –

• total number of units sanctioned, constructed and under construction, with segregation of sold and unsold units;
• treatment of claims of allottees, by way of possession of units, execution of conveyance deed, registration or transfer of title in respect of unit already handed over or otherwise eligible for conveyance, refund of amount, or in any other manner;
• where the information memorandum includes the details of the allottees who have not submitted their claims, the resolution plan shall provide for treatment of such allottees;
• timelines for completion and delivery of possession to be specified project-wise, phase-wise or tower-wise, as applicable; and
• periodic reporting including submission of progress reports to the Monitoring Committee.