CIRP (Amendment) Regulations, 2025
A summary of the 2025 amendments to CIRP regulations, covering possession handover, facilitator appointments, and regulatory participation in real estate insolvencies.
Overview of 2025 CIRP Amendments Concerning Real Estate Insolvencies
The 2025 amendments to the CIRP Regulations introduce specific frameworks for addressing stress in real estate projects. The following key regulatory changes impact the resolution process:
- Handing Over Possession (Regulation 4E): The Resolution Professional (RP) is now permitted to hand over possession of a plot, apartment, or building to an allottee. This requires approval from the Committee of Creditors (CoC) with at least 66% voting share, provided the allottee has fulfilled all contractual obligations.
- Facilitators for Large Creditor Classes (Regulation 16C): Where a class of creditors exceeds 1,000, the CoC may appoint up to five facilitators to assist the Authorized Representative. These facilitators serve as intermediaries and are remunerated as part of the CIRP cost.
- Regulatory Participation (Regulation 18(4)): The CoC may direct the RP to invite competent authorities under the Real Estate (Regulation and Development) Act, 2016, to attend meetings without voting rights to provide expert insights.
- Project Status Reporting (Regulation 30C): The RP must prepare a report detailing development rights and necessary permissions for real estate projects, submitting it to the Adjudicating Authority within 60 days of the insolvency commencement date.
- Relaxation for Allottee Associations (Regulation 36A & 36B): The CoC may relax eligibility criteria and performance security requirements for resolution applicants comprising associations of allottees representing at least 10% or 100 creditors in a class.