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Informist, Monday, Nov. 17, 2025

 

 

NEW DELHI – The Insolvency and Bankruptcy Board of India Monday suggested that the information memorandum of a company undergoing corporate insolvency resolution process should include details of all real estate allottees as reflected in the company's record, irrespective of whether these allottees have filed the claims. An information memorandum under the Insolvency and Bankruptcy Code, 2016 is a document prepared by the resolution professional that provides detailed information about a corporate debtor to assist potential resolution applicants in formulating a resolution plan

 

Further, in real estate projects where the details of allottees are reflected in the books of accounts of the corporate debtor but they have not submitted their claims, the resolution plan shall provide for treatment of such allottees, the bankruptcy board said in a discussion paper for strengthening safeguards and transparency in insolvency process. The board has invited comments on its suggestions by Dec. 8.

 

The paper states that in many real estate insolvency cases, several allottees whose details are duly reflected in the corporate debtor's books of account do not file claims within the prescribed time period. Consequently, such allottees are excluded from both the information memorandum and the resolution plan, said the board. The exclusion of such allottees also causes practical difficulties at the stage of plan implementation, when non-filing homebuyers subsequently approach the resolution professional or the successful resolution applicant seeking inclusion, resulting in uncertainty, delay, and avoidable litigation, the board added.

 

Further, to enhance transparency and ensure a true and fair representation of the corporate debtor's financial position, the board proposed to strengthen the disclosure requirements by expressly mandating inclusion of certain key information items in the information memorandum of debt-ridden companies. The information memorandum should include details of receivables of the corporate debtor, including trade receivables, intercorporate receivables, and receivables arising under any contract. It should have details of joint development agreements and other similar collaboration or codevelopment arrangements, including rights, obligations, and interests of the corporate debtor arising thereunder. Further, details of assets which are under attachment by enforcement agencies, including particulars of the assets attached, the authority under which such attachment has been made and the status of those proceedings should be included in the memorandum, said the board.  End

 

Reported by Surya Tripathi

Edited by Akul Nishant Akhoury

 

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