In the insolvency of real estate companies, 212 applications pertaining to real estate sector were admitted for Corporate Insolvency Resolution Plan (CIRP) under the Insolvency & Bankruptcy Code (IBC), of these, 8 cases were resolved, 65 cases have been settled or withdrawn and 23 cases were ordered for liquidation and for rest, process is ongoing. This was stated by Union Minister of State for Corporate Affairs Shri Rao Inderjit Singh in a written reply to a question in Lok Sabha.

The Minister further said that the insolvency resolution process is market driven and the outcome depends on market forces.

The Minister stated that Insolvency and Bankruptcy Code (the Code) was enacted on 28th May, 2016 and the Insolvency and Bankruptcy Board of India was established on 1st October, 2016 to exercise regulatory functions under the Code. Further, the provisions for corporate insolvency resolution process (CIRP) were notified w.e.f. 1st December, 2016.

Insolvency under IBC: real estate CIRP outcomes reflect market-driven resolutions with settlements, liquidations, and ongoing cases. Of 212 CIRP applications admitted in the real estate sector under the Insolvency and Bankruptcy Code, a minority were resolved, a larger number were settled or withdrawn, 23 were ordered for liquidation and the remainder continue in process; the corporate insolvency resolution process is driven by market forces. The Code was enacted in May 2016, the Insolvency and Bankruptcy Board of India established thereafter to regulate the regime, and CIRP provisions were notified from December 2016.