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Informist, Thursday, Feb. 26, 2026

 

NEW DELHI – A resolution plan for real estate companies should provide for treatment of allottees who had not submitted their claims but their details are included in the information memorandum of real estate projects, as per amendments to the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.

 

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.

 

The information memorandum will include the details of all real estate allottees, including their names, amounts due, and units allotted, whose claims are either reflecting in the books of accounts of the corporate debtor or in the records of the Real Estate Regulatory Authority, but have not submitted their claims to the resolution professional, the amendments state. This is in line with proposals passed by the Insolvency and Bankruptcy Board of India in November. The board, in a press release issued Thursday, said that these amendments will ensure fair and equitable treatment of all homebuyers, enhance transparency, and avoid uncertainty or disputes during plan implementation.

 

Further, the information memorandum of debt-ridden companies to include details of receivables of the corporate debtor, including trade receivables, inter-corporate receivables, and receivables arising under any contract. It should include details of joint development agreements and other similar collaboration or co-development arrangements, including the rights, obligations, and interests of the corporate debtor arising thereunder and details of assets under attachment by enforcement agencies, including particulars of the assets attached, the authority effecting such attachment, and the status of related proceedings. 

 

These amendments aim to reduce information asymmetry through enhanced disclosures thereby ensuring efficient resolution outcomes, said the board. It will also enhance transparency and ensure a true and fair representation of the corporate debtor's financial position, the board added.  End

 

Reported by Surya Tripathi

Edited by Ashish Shirke

 

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