IBBI Notifies The IBBI (Insolvency Resolution Process For Corporate Persons) (Amendment) Regulations, 2026

IBBI, through its notification dated 25.02.2026, released the IBBI (Insolvency Resolution Process for Corporate Persons) (Amendment) Regulations, 2026 ("IRP Amendment Regulations")¹ amending the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 ("IRP Regulations"). The IRP Amendment Regulations came into force from their date of publication in the Official Gazette, i.e., 25.02.2026.

The IRP Amendment Regulations bring in the following new amendments:

1. Definition of fair value: The definition of 'fair value' in Regulation 2(hb)of the IRP Regulations has been substituted and an explanation has been added to the effect that the estimated realizable value of the CD shall be calculated after taking into account the total estimated realizable value of all the assets of the CD including, inter-alia, tangible and intangible assets of the CD, along with their underlying synergies.
2. Determination of fair value and liquidation value: The manner of determination of fair value and liquidation value has been amended:
   1. The set of registered valuers appointed under Regulation 27 of the IRP Regulations shall comprise of one registered valuer for each asset class of the CD. Within each set, one valuer shall be designated as the coordinating valuer in consultation with the CoC for computation of the fair value of the CD.
   2. The definition of 'asset class' as will be as provided under the Companies (Registered Valuers and Valuation) Rules, 2017 ("Registered Valuers Rules"). Rule 2(1)(c) of the Registered Valuers Rules define asset class to mean a distinct group of assets, such as land and building, or machinery and equipment, displaying similar characteristics, that requires separate set of valuers for valuation.
   3. Each registered valuer shall, after physical verification of the inventory and fixed assets of the CD, submit to the RP and the coordinating valuer, a report determining the fair value of the assets and the liquidation value, in accordance with valuation standards notified by IBBI.
   4. The coordinating valuer shall compute the fair value of the CD after considering the asset-wise fair values submitted by the valuers within the set and submit the consolidated determination to the RP.
   5. The RP may appoint a third set of registered valuers where the two estimates of fair value or liquidation value differ significantly; or the CoC resolves to appoint a third set for a recorded reason. For the purpose of this clause, "significantly different" shall mean a variation of twenty-five percent (25%) or more in the fair value or liquidation value.
   6. The fair value of the CD shall be the average of the two closest estimates submitted by the coordinating valuers and the liquidation value shall be the average of the two closest estimates submitted by the registered valuers in each asset class.
   7. Sub-Regulation (1A) has been inserted after sub-regulation (1) in Regulation 35of the IRP Regulations stating that a registered valuer shall prepare the valuation report and maintain such documentation as per the format notified by IBBI.
3. Information memorandum:
   
   Regulation 36(2) of the IRP Regulations has been amended to include the details of receivables of the CD joint development agreements, assets which are under attachment by enforcement agencies and details of all allottees whose claims are either reflecting in the books of account of the CD or in the records of the Real Estate Regulatory Authority.
   
   
4. Treatment of allottees not filing claims:
   
   Regulation 38A has been inserted after Regulation38 of the IRP Regulations to provide that in respect of a real estate project, the resolution plan shall provide for treatment of such allottees who have not submitted their claims and where the information memorandum includes the details of such allottees.

Footnote

1. Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons)(Amendment) Regulations,2026.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.