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IBC Revives Stalled Projects for 1.4 Lakh Homebuyers
Many people paid for homes that were not finished because their developers faced financial trouble.
India’s Insolvency and Bankruptcy Code, or IBC, lets new developers take over some of these stuck projects.
More than 1.4 lakh buyers have moved closer to getting their homes or have already received them.
However, about 1.1 lakh buyers are still waiting in unresolved cases.
Developers such as Adani Realty and Lodha have brought money and construction expertise to some projects.
In Mumbai, one revived project has delivered homes to 903 buyers.
In Gurugram, another project helped 724 buyers receive possession.
The process can be slow because of court cases, appeals and higher construction costs.
IBBI has suggested changes intended to make finishing projects more important than liquidating them.
More than 1.4 lakh homebuyers have moved closer to receiving homes or obtained possession through IBC-led resolutions.
The 553 real estate insolvency cases admitted under the IBC involve nearly 2.5 lakh homebuyers, with about 17% resolved.
Around 1.1 lakh homebuyers across 221 cases are still awaiting resolution, with ₹65,000 crore tied up in unresolved projects.
Developers including Adani Realty and Lodha have taken over distressed projects, providing fresh capital and construction capacity.
IBBI has proposed project-wise insolvency, ring-fenced cash flows and closer coordination between RERA authorities and insolvency courts.
- Who
- More than 1.4 lakh homebuyers, financially stronger developers, insolvency officials and real estate analysts are involved.
- What
- The IBC has helped revive some stalled housing projects, while many other projects remain unresolved.
- Where
- The cases involve real estate projects across India, including projects in Mumbai and Gurugram.
- When
- Homebuyers were recognised as financial creditors under the IBC in 2018; the article was published on September 25, 2026.
- Why
- New developers are providing capital and execution capacity to complete distressed projects, although litigation, appeals and rising costs continue to delay resolutions.
Revival and Buyer Benefits
Delays and Structural Concerns
Effectiveness of IBC
Revival and Buyer Benefits
Industry observers say the IBC has restored buyer confidence and enabled stronger developers to complete projects that might otherwise face liquidation.
Delays and Structural Concerns
Analysts say real estate insolvency is structurally slower than in many other sectors because projects involve long timelines, layered claims and substantial upfront funding.
Project viability
Revival and Buyer Benefits
Steady end-user demand and firmer pricing in larger markets have made some stalled projects viable for completion.
Delays and Structural Concerns
Successful bidders may have to deliver homes at prices agreed five to 10 years earlier, while construction, labour and financing costs have increased.
Need for reform
Revival and Buyer Benefits
IBBI’s proposals for project-wise proceedings, ring-fenced cash flows and stronger RERA coordination could improve project completion.
Delays and Structural Concerns
Prolonged litigation, multiple appeals and delays between approval and execution can continue to undermine project viability and completion.
Key facts
- Homebuyers helped
- More than 1.4 lakh homebuyers have moved closer to possession or received homes.
- Real estate insolvency cases
- 553 cases have been admitted under the IBC and involve nearly 2.5 lakh homebuyers.
- Resolution rate
- About 17% of the admitted cases have been successfully resolved.
- Homebuyers awaiting resolution
- About 1.1 lakh homebuyers across 221 cases remain awaiting resolution.
- Investment in resolved projects
- Resolved projects represent approximately ₹84,000 crore in investments.
- Investment in unresolved projects
- Approximately ₹65,000 crore remains tied up in unresolved developments.
- Take Ten BKC
- Adani Realty committed more than ₹1,000 crore toward completion, and 903 buyers have received homes.
Quotes
Vishal Bhargava
Real estate expert
“While no resolution plan is perfect, NCLT has restored confidence amongst buyers. With heavyweight developers like Adani and Lodha acquiring distressed projects, reviving them and delivering homes, the insolvency framework has often proved a more effective remedy than prolonged litigation.”
thehindubusinessline.com
CNBC TV 18
“Real estate resolutions under IBC are slower than most other sectors, and that’s structural. These are typically long-gestation projects with layered claims across homebuyers, lenders and land partners, and whoever steps in has to fund construction upfront while returns come later.”
thehindubusinessline.com
Sources
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