Builder in Insolvency? Claim Deadlines and Homebuyer Representation for Bengaluru Buyers
When a Bengaluru builder enters insolvency, homebuyers must file claims by the public announcement date, with a limited late window, and vote through an authorised representative. What IBBI's FAQs say, what changes in liquidation, and what the IBC (Amendment) Act, 2026 proposals add.
The notice usually arrives as a newspaper advertisement: a public announcement that the company behind your Bengaluru apartment project has been admitted into a corporate insolvency resolution process, with a last date for submitting claims. Miss that date and you are arguing from behind. Get it right and you are part of a class of homebuyers with a representative who votes for you in the committee that decides the project's future. In 2026 the rules around that process are also shifting: the Insolvency and Bankruptcy Code (Amendment) Act, 2026 received presidential assent on 6 April 2026, and the regulator has proposed changes that touch homebuyers directly.
The short answer. Under Regulation 12 of the CIRP Regulations, as set out in the Insolvency and Bankruptcy Board of India's FAQs of 24 September 2025, a creditor must submit a claim with proof by the last date in the public announcement, with a late claim allowed up to the date of the request for resolution plans or 90 days from the insolvency commencement date, whichever is later, with reasons for any delay beyond 90 days. Homebuyers act as a class through an authorised representative, and an amended Regulation 16A(2) lets the selected professional act as interim representative while the appointment is pending. The trade-off: collective representation gives homebuyers weight in the committee of creditors, but it also means individual buyers vote through the class rather than negotiating alone.
What happens the day a builder is admitted into insolvency?
The clock starts. The insolvency commencement date sets the reference point for claims, and the public announcement carries the last date for submitting them. The IBBI FAQs on the Code, as on 24 September 2025, quote Regulation 12(1): a creditor shall submit a claim with proof on or before the last date mentioned in the public announcement.
The same FAQ quotes Regulation 13(1): the interim resolution professional or resolution professional shall verify every claim, as on the insolvency commencement date, within seven days from the last date of receipt of claims, and then maintain a list of creditors showing the amount claimed, the amount admitted and any security interest, and update it.
For a Bengaluru buyer, the practical point is to treat the public announcement as a deadline notice, not as background news. PropNewz explained where homebuyers sit in the insolvency framework in our guide to builder insolvency and homebuyers as financial creditors. This piece focuses on the steps and dates.
What if you miss the claim deadline?
There is a window, but it is not open-ended. The proviso to Regulation 12(1), as quoted in the IBBI FAQ, says a creditor who fails to submit a claim within the time in the public announcement may submit it to the interim resolution professional or resolution professional up to the date of issue of the request for resolution plans under Regulation 36B, or ninety days from the insolvency commencement date, whichever is later.
A second proviso adds that the creditor shall provide reasons for any delay in submitting the claim beyond ninety days from the insolvency commencement date. In practice that means a late claim has to be explained, and the later it is, the closer it comes to the stage where resolution applicants are already preparing plans.
Do not test that window. Submit as soon as you see the announcement, keep proof of submission, and then check that your claim appears on the list of creditors the professional maintains.
Who votes for homebuyers in the committee of creditors?
An authorised representative for the homebuyer class. The IBBI FAQ addresses what happens while the appointment is pending. It says Regulation 16A(2) has been amended so that once the application to appoint an authorised representative is filed and pending, the insolvency professional selected to be the representative steps in as interim representative for the homebuyer class.
During that interim period, the FAQ says, that professional has the same rights and duties as an authorised representative, including attending committee of creditors meetings, collecting instructions from homebuyers and casting votes for the class. That closes a gap in which homebuyers could otherwise go unrepresented at early meetings.
| Stage | What the rule says | Source |
|---|---|---|
| Claim submission | By the last date in the public announcement | Regulation 12(1), IBBI FAQ |
| Late claim | Up to request for resolution plans or 90 days from commencement, whichever later, with reasons beyond 90 days | Proviso to Regulation 12(1), IBBI FAQ |
| Claim verification | Within 7 days of the last date of receipt of claims | Regulation 13(1), IBBI FAQ |
| Homebuyer representation pending appointment | Selected professional acts as interim representative with full rights | Amended Regulation 16A(2), IBBI FAQ |
| If the company goes into liquidation | Homebuyer AR provision does not extend; buyers may appoint their own representative at their cost | IBBI FAQ, question 79 |
What changes if the project goes into liquidation?
Representation becomes your own responsibility. The IBBI FAQ says the provision to appoint an authorised representative for real estate allottees, as provided in the resolution process, does not extend to the liquidation process. In liquidation, homebuyers, like other creditors, may appoint a representative for the stakeholders' consultation committee under the liquidation process regulations, with the fees borne by them.
That is a meaningful difference. In the resolution process, the system provides a representative for the class. In liquidation, buyers who want a voice need to organise and pay for one. An active, registered association of allottees is an advantage at that point.
What does the 2026 amendment change for homebuyers?
Some changes are already in the amended Code, and others are proposals. The IBBI discussion paper of 15 April 2026 says the Insolvency and Bankruptcy Code (Amendment) Act, 2026 received presidential assent on 6 April 2026, and sets out proposed amendments to the CIRP Regulations to implement it.
Three items matter to buyers. First, the paper records that Section 12A, as amended, permits withdrawal of an insolvency case only after the committee of creditors is constituted and before the first invitation for resolution plans, requires approval of ninety per cent of the committee's voting share, and gives the Adjudicating Authority thirty days to decide a withdrawal application.
Second, the amended Section 18(b) requires the interim resolution professional to collate claims in a manner to be specified, and adds an Explanation that the professional shall verify claims and, if required, determine their value. The paper quotes the Select Committee noting that this is intended to synchronise claim collection between the resolution process and liquidation, eliminating the need for a fresh invitation and verification of claims in liquidation.
Third, the paper proposes that a corporate applicant filing under Section 10 must furnish details of all allottees, including names, amounts due and units allotted, whose claims appear in the company's books or in the records of the Real Estate Regulatory Authority. That is a proposal in a discussion paper, not yet a final regulation, so check its status before relying on it.
How much weight can you put on IBBI's FAQ?
Use it as a map, not as the law itself. The FAQ's own disclaimer says it gives a general overview of common issues under the Code and the regulations, is not a legal instrument and must not be treated as legal advice or an authoritative opinion. It says that in any inconsistency, the provisions of the Code, the rules and regulations, notifications and circulars issued by the competent authority, and binding judicial decisions prevail.
The disclaimer also notes that laws and interpretations evolve and that the FAQ was prepared with reasonable care as of 24 September 2025. Since then, the Amendment Act of April 2026 has been passed and IBBI has proposed regulation changes. Before you act on any single answer, check whether the regulation it quotes has been amended again, and read the public announcement in your own case closely, because it sets the dates and the claim route that apply to you.
A short consultation with an insolvency professional or advocate at the claim stage is usually cheaper than fixing a rejected or late claim later.
What should a Bengaluru buyer do if this happens?
Act within days, not weeks. Use this checklist.
- Note the insolvency commencement date and the last date for claims from the public announcement.
- Gather your agreement for sale, allotment letter, payment receipts and any RERA order in your favour.
- Submit your claim with proof before the last date, using the form and route the announcement specifies.
- Keep proof of submission and check that your claim appears on the list of creditors.
- Find out who the authorised representative, or interim representative, for the homebuyer class is, and how they collect instructions.
- Coordinate with other allottees through a registered association so instructions are consistent.
- If the company moves to liquidation, decide quickly with other buyers whether to appoint and pay for a representative.
If you are still choosing a project, the same file discipline helps from day one. Whether you are looking at Sumadhura Whitefield in Kannamangala or anywhere else, keep every receipt in one place so a claim can be proved quickly if it is ever needed.
Frequently asked questions
What is the deadline for a homebuyer to file a claim in builder insolvency?
Regulation 12(1) of the CIRP Regulations, as quoted in IBBI's FAQs of 24 September 2025, requires a claim with proof by the last date in the public announcement. A late claim may be made up to the request for resolution plans or ninety days from commencement, whichever is later, with reasons for any delay beyond ninety days.
Who represents homebuyers in a builder's insolvency?
An authorised representative votes for the homebuyer class in the committee of creditors. IBBI's FAQ says amended Regulation 16A(2) lets the professional selected as representative act as interim representative while the appointment application is pending, with the same rights, including attending meetings, collecting instructions and voting for the class.
Do homebuyers get an authorised representative in liquidation?
No. IBBI's FAQ says the provision appointing an authorised representative for real estate allottees in the resolution process does not extend to liquidation. In liquidation, homebuyers, like other creditors, may appoint a representative for the stakeholders' consultation committee, with the fees borne by them.
When did the IBC amendment of 2026 become law?
IBBI's discussion paper of 15 April 2026 says the Insolvency and Bankruptcy Code (Amendment) Act, 2026 received presidential assent on 6 April 2026. The paper proposes amendments to the CIRP Regulations to implement it, including on withdrawal of cases, collation of claims and details of allottees.
Last updated 2026-10-24. PropNewz Team.
Contact Us
Stay updated with latest news and new projects!
Tell us what you want, We'll do the rest.
Share your budget and where you're looking. An advisor who has actually walked the sites will shortlist a handful of RERA-registered projects and tell you which to skip.