Flat Possession During Insolvency: 2025 Rule

Last reviewed: 3 September 2026.

The old problem for a homebuyer caught in a builder insolvency was simple and brutal. Your flat might be finished, your money might be fully paid, and you still could not move in, because the corporate insolvency resolution process had to run its course first. A 2025 amendment to the insolvency regulations changed that specific bottleneck.

The possession route is not automatic. Read the conditions carefully, because all three must line up.

1. The resolution professional acts. It is the resolution professional, not the builder and not the buyer, who hands over possession. Your request has to reach the RP.
2. The committee of creditors approves. The RP must obtain the approval of the committee of creditors. Homebuyers usually sit inside that committee as a class, which is why participation matters so much.
3. You have fulfilled all your obligations. Possession follows only upon fulfilment of all obligations by the homebuyer. In practice that means your payments and dues under the builder buyer agreement must be clear.

If any one of these is missing, the handover does not happen. The most common failure point for an individual buyer is the third one, so settle your own account first and keep the receipts.

The same amendment carried several other real estate specific reforms. Each is worth knowing because they change how much say you get.

Facilitators for sub classes of homebuyers. Facilitators can now be appointed for sub classes within large creditor classes such as homebuyers, to ensure effective participation. Their role includes facilitating communication between the authorised representative and the creditors assigned to them, and providing information and clarifications about the resolution process. In a project with hundreds of buyers, this is the mechanism that stops you being a silent number.

Land authorities can be invited to the table. The committee of creditors can now invite relevant land authorities, such as NOIDA or HUDA, to its meetings for inputs on regulatory and land development matters. The stated aim is to make resolution plans more viable and to build confidence among homebuyers.

A 60 day report on development rights. Resolution professionals must now prepare a detailed report on the status of development rights, approvals and permissions for real estate projects within 60 days of insolvency commencement. This is the document that tells everyone whether the project is actually buildable.

Relaxations so buyers can bid for their own project. The committee of creditors has been empowered to relax certain conditions for associations or groups of homebuyers who want to participate as resolution applicants, including relaxations in eligibility criteria, performance security and deposits.

A monitoring committee after the plan is approved. The committee of creditors must now consider forming a monitoring committee to supervise implementation of the resolution plan. It may include the resolution professional and representatives of creditors and the successful resolution applicant, and it must submit quarterly progress reports to the adjudicating authority.

MSME status disclosure. The resolution professional must disclose whether the corporate debtor is registered as a micro, small or medium enterprise, since that unlocks relaxations for potential resolution applicants under the Code.

This amendment does not replace your existing remedies. It removes one specific delay inside insolvency.

If your question is instead how to start an insolvency case as a group of buyers, that is a different threshold question and we cover it separately in homebuyer insolvency and the 100 allottees rule at NCLT.

1. Confirm the CIRP is admitted and find the resolution professional. Possession under this route only exists inside an admitted corporate insolvency resolution process, and the RP is the person who can act.
2. Clear your own dues and collect the proof. The condition is fulfilment of all obligations by the homebuyer. Assemble the builder buyer agreement, the full payment ledger, every receipt and the bank statements behind them.
3. Write to the resolution professional. Ask in writing for handover of possession under the 2025 amendment, attach your payment proof, and state that your obligations are fulfilled. Keep the acknowledgement.
4. Get organised with the other buyers in your project. Since the committee of creditors has to approve, a coordinated group of allottees carries far more weight than individual letters.
5. Use the facilitator and authorised representative route. Ask who your authorised representative is, and whether a facilitator has been appointed for your sub class. Route your questions through them.
6. Ask for the 60 day development rights report. It tells you whether the approvals and permissions for your project are actually in place.
7. Keep the RERA and consumer routes alive. This amendment is one more lever, not a replacement for the remedies you already have.

• The allotment letter and the builder buyer agreement.
• A complete payment ledger with every receipt and matching bank statements.
• Proof that no amount remains outstanding from your side.
• Any demand letters from the builder and your replies.
• Correspondence with the resolution professional and the authorised representative, with acknowledgements.
• Your claim form filed in the insolvency process, and the acknowledgement of it.

The insolvency process itself is run by private professionals, so an RTI application to the resolution professional is not the right tool. But a stalled real estate project usually has a public authority somewhere in its file, and that is where the Right to Information Act, 2005 helps. A development authority such as NOIDA or HUDA, a municipal body, or a state RERA authority holds records on land allotment, dues, approvals and project registration.

To
The Public Information Officer
[Development authority / Municipal body / State RERA authority]
[Address]

Subject: Information under Section 6(1) of the Right to Information Act, 2005
regarding project [name] at [address / plot number]

Sir/Madam,

Please provide the following information in respect of the project known as
[project name] at [full address / plot or khasra number], developed by
[builder name]:

1. The status of the land allotment or lease for the said project, including
   any outstanding dues payable by the developer to your authority as on the
   date of this application.

2. Copies of the sanctioned building plan and of any completion or occupancy
   certificate applied for or issued for the said project, with dates.

3. A list of the approvals and permissions granted, refused, or pending for
   the said project, with dates.

4. Copies of any notice, show cause notice or order issued by your authority
   to the developer in respect of the said project.

5. Whether your authority has been invited to, or has attended, any meeting
   of the committee of creditors in the insolvency proceedings of the said
   developer, and copies of any inputs furnished by your authority.

If any part of this request is held by another public authority, please
transfer that part under Section 6(3) of the RTI Act, 2005 within five days.

I enclose the prescribed application fee. Please supply the information
within 30 days as required by Section 7(1).

Yours faithfully,
[Name]
[Full postal address]
[Phone / email]
[Place, Date]

Silence for 30 days is a deemed refusal and opens a first appeal under section 19(1). The Timeline Tracker handles the dates and the AI RTI Drafter formats the application.

• Assuming possession is now automatic. It requires the resolution professional to act, the committee of creditors to approve, and your own obligations to be fulfilled.
• Approaching the builder instead of the resolution professional. Once a CIRP is admitted, the builder's management is not the decision maker for this.
• Leaving your own dues unsettled. Fulfilment of all obligations by the homebuyer is an express condition of the handover.
• Acting alone when the committee of creditors decides. Homebuyers vote as a class. Individual letters rarely move a class decision.
• Filing an RTI application with the resolution professional. Direct RTI applications at the public authorities in the file, such as the development authority, the municipal body or the state RERA authority.
• Ignoring the authorised representative. That is your formal voice in the committee, and a facilitator may now be appointed for your sub class.

Yes, that is exactly what the amendment permits. The resolution professional, after obtaining the approval of the committee of creditors and upon fulfilment of all obligations by the homebuyer, can hand over possession of plots, apartments or buildings while the resolution process is still ongoing.

The IBBI notified the amendment regulations on 3 February 2025 and they came into immediate effect. The IBBI announced them by press release No. IBBI/PR/2025/03 dated 4 February 2025.

The resolution professional, and only with the approval of the committee of creditors. Once a CIRP is admitted, the builder's management is not the decision maker on this.

It refers to your side of the bargain under the builder buyer agreement, principally your payments and dues. Clear them and keep documentary proof, because it is an express condition of the handover.

Facilitators can now be appointed for sub classes within large creditor classes such as homebuyers. They facilitate communication between the authorised representative and the creditors assigned to them and provide information and clarifications about the process, which is how an individual buyer gets heard in a large project.

The committee of creditors has been empowered to relax certain conditions for associations or groups of homebuyers participating as resolution applicants, including eligibility criteria, performance security and deposits.

Resolution professionals must prepare a detailed report on the status of development rights, approvals and permissions for real estate projects within 60 days of insolvency commencement. It is the clearest early signal of whether the project is viable.

No. It is an additional route that removes a delay inside insolvency. Your other project level remedies continue to exist and should not be abandoned.

• Insolvency and Bankruptcy Board of India, Press Release No. IBBI/PR/2025/03 dated 4 February 2025 - announcing the IBBI (Insolvency Resolution Process for Corporate Persons) (Amendment) Regulations, 2025 notified on 3 February 2025 with immediate effect, and setting out the handing over of possession, facilitators, participation of land authorities, the 60 day report, relaxations for allottees, the monitoring committee and MSME disclosure.
• Insolvency and Bankruptcy Board of India - the Board's website, where the amended regulations are published.
• The Right to Information Act, 2005 - sections 6(1), 6(3), 7(1) and 19(1) used in the sample letter.

• Homebuyer insolvency: the 100 allottees rule at NCLT
• Apartment society maintenance overcharge
• Civil, family and property law hub
• How to file an RTI in India
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• The RTI Playbook