# Project-wise insolvency shields homebuyers from developer defaults

> New rules let healthy real estate projects skip insolvency when developer fails elsewhere.
- Title: Project-wise insolvency shields homebuyers from developer…
- Summary: New rules let healthy real estate projects skip insolvency when developer fails elsewhere. IBBI regulations allow exclusion of financially sound projects…
- Keywords: ibbi, project-wise insolvency, homebuyers, corporate insolvency resolution process, nclt, rera, real estate, news, india, Project-wise, insolvency, shields
- Source: mint — https://livemint.com/industry/explainer-new-building-block-how-project-wise-insolvency-will-shield-homebuyers-construction-11793692406199.html
- Author: Banikinkar Pattanayak
- Published: 2026-11-03T10:17:20+00:00
- Read time: 1 min
- Topics: ibbi, project-wise insolvency, homebuyers, corporate insolvency resolution process, nclt, rera, real estate, news, india
## New insolvency rules for real estate
IBBI notified regulations enabling exclusion of healthy projects from insolvency when developer defaults elsewhere.
## Why homebuyers need this
Homebuyers previously faced disruptions in maintenance and registration when developer defaults dragged all projects into insolvency.
## Key project rules
Each project must have a separate bank account and comply with Rera fund utilization norms to prevent fund diversion.
## What the rules require
Project-wise disclosures on units, inventory, approvals, dues, and litigations must be made under new regulations.
## How homebuyers benefit
Healthy projects can continue construction and registration without moratorium while stressed projects face fund diversion checks.
## Exclusion process
Committee of Creditors needs two-thirds majority to recommend exclusion of healthy projects from insolvency.
## Current insolvency state
221 of 553 real estate cases in progress as of September 2025, involving 1,08,887 homebuyers.
## Key takeaway

IBBI regulations allow exclusion of financially sound projects from insolvency even when developer defaults.