IBBI (Insolvency Resolution Process for Corporate Persons) (Amendment) Regulations, 2025

The Insolvency and Bankruptcy Board of India (IBBI) has amended the Insolvency Resolution Process for Corporate Persons Regulations, 2016. Effective from their publication in the Official Gazette, key changes mandate resolution professionals to facilitate property transfers in real estate projects upon approval by 66% of creditors.

A new regulatory framework introduces the role of facilitators to assist in managing large creditor groups, outlining specific responsibilities, limitations on their appointments, and structured fee arrangements. Additionally, the amendments require resolution professionals to compile detailed reports on the status of real estate development rights and permissions. These reports must be submitted to the committee of creditors and the Adjudicating Authority within 60 days of the commencement of the insolvency process.

Key changes include introducing monitoring committees to oversee resolution plan implementation, requiring quarterly reports to the Adjudicating Authority, and mandating disclosure of corporate debtors’ MSME registration status. Committees can now relax performance security for real estate allottees. These amendments aim to enhance transparency, creditor representation, and efficiency in insolvency cases.