Archive · 19 Nov 2025
IBBI Proposes New Rules to Strengthen Homebuyer Rights in Insolvency
The Insolvency and Bankruptcy Board of India (IBBI) wants to make it easier for homebuyers to get their fair share when a company that owes them money goes bankrupt.
They're proposing new rules to make sure all homebuyers are included in the resolution process, even if they didn't file a claim.
They also want to make sure important details about the company are disclosed, and that operational creditors have a say in the process.
This is all part of their plan to make the bankruptcy system better and more fair.
IBBI proposes to make all homebuyers stakeholders in resolution process
Mandatory disclosure of additional items in information memorandum
Top five operational creditors can attend CoC meetings as observers
Reasons for liquidation to be mandatorily recorded by CoC
Proposals aim to make insolvency framework more foolproof and equitable
- Who
- Insolvency and Bankruptcy Board of India (IBBI)
- What
- Proposed new rules for homebuyers in insolvency process
- When
- Proposed in a new discussion paper
- Where
- India
- Why
- To make the insolvency framework more foolproof and equitable
Homebuyers' Rights Advocates
Bankruptcy Professionals
Homebuyer Representation
Homebuyers' Rights Advocates
Welcomes the proposal to include all homebuyers in the resolution process, even if they didn't file a claim.
Bankruptcy Professionals
Concerns about potential delays and increased complexity in the process.
Disclosure Requirements
Homebuyers' Rights Advocates
Supports the proposal to mandate disclosure of additional items to ensure transparency.
Bankruptcy Professionals
Worries about practical challenges in gathering complete and accurate information.
Operational Creditors' Role
Homebuyers' Rights Advocates
Applauds the proposal to let top five operational creditors attend CoC meetings as observers.
Bankruptcy Professionals
Expresses concern about potential disruption to the CoC structure.
- Proposed Changes
- Making all homebuyers stakeholders, mandatory disclosure of additional items, operational creditors as observers, mandatory reasons for liquidation
- Affected Parties
- Homebuyers, operational creditors, resolution professionals, Committee of Creditors
- Effective Date
- TBD, last date for comments is December 8
