Archive · 1 Oct 2025
IBBI to Implement SC Suggestions for Bankruptcy Reforms
The IBBI is changing the rules for companies that can't pay their debts, following advice from the Supreme Court.
These changes aim to help people who buy homes and fix problems in the real estate market.
The new rules will make sure that when someone buys a property, they officially own it sooner, after paying 20%.
They will also make it easier to fix troubled projects, not just entire companies.
The IBBI is working with different groups to get this done and expects to have everything in place in a few months.
IBBI is working on suggestions from the Supreme Court to improve the bankruptcy ecosystem.
The suggestions came from a recent case regarding homebuyers' rights.
Key suggestions include early property registration after 20% payment.
Project-specific insolvency resolution is suggested to prevent affecting the entire developer group.
Implementation is expected within the next two to three months.
- Who
- IBBI
- What
- Implementing suggestions from the Supreme Court to improve the bankruptcy ecosystem
- When
- Within the next two to three months
- Where
- India
- Why
- To improve the bankruptcy ecosystem, protect homebuyers, and restore credibility to the real estate sector
- Focus
- Implementing Supreme Court suggestions on bankruptcy reforms
- Key Players
- IBBI, Supreme Court, Ministry of Corporate Affairs, RERA
- Actions
- Revising regulations, implementing SC suggestions
- Timeline
- Implementation in the next 2-3 months
- Stakeholders
- Homebuyers, real estate sector
Sources
ED vs IBC: Govt to resolve legal clash impacting homebuyers in builder bankruptcies
IBBI, ED reached solution to address problem in interface between insolvency law, PMLA: Official
Will address conflict between IBC and PMLA soon: IBBI chief
