The article examines the evolving legal framework for protecting homebuyers under India’s Insolvency and Bankruptcy Code (IBC). While the 2018 amendment recognised homebuyers as financial creditors, the Supreme Court’s 2025 Mansi Brar Fernandes judgment distinguished genuine homebuyers from speculative investors and directed scrutiny at the initiation of insolvency proceedings. The IBBI’s 2026 committee report proposes project-wise resolution, stronger homebuyer representation, operational escrow accounts and better coordination with RERA, prioritising project completion and timely possession over corporate-level recovery.
Please click here to read the full article by M. Arun Kumar, Partner, Bhavesh Gupta, Associate, and Devanshi Bhatia, Junior Associate, published in Lexology.
Arun’s practice includes diverse aspects of construction, infrastructure projects, renewable energy and real estate including project development, acquisitions, divestments and joint ventures in that space.