Overview
- The IBBI-appointed committee released 155 recommendations that would admit real estate bankruptcies project by project so healthy projects can continue while stressed ones are fixed.
- It proposes mandatory project escrow accounts that stay active during insolvency so homebuyer payments and construction money do not get blocked.
- It calls for a quick, independent technical audit after admission to measure build progress and set clear cost-to-complete estimates.
- It recommends limited consolidation of land and development rights for each project and rejects reverse CIRP, placing control with a professional manager and then a new bidder.
- It urges explicit clean‑slate relief for past dues such as property taxes, external development charges, and penalties, and suggests lifting the default trigger for real estate cases to Rs 5 crore.