How to Meet the RERA and Site Disclosure Duties in a Real Estate CIRP
An insolvency professional taking over a builder inherits two regulators, not one. The RERA and site disclosure duties now set out in a circular of October 30, 2026 are specific, dated from appointment, and largely about putting information where allottees and the regulator can see it.
Step 1: Know Which Instrument Governs
Circular No. IBBI/CIRP/110/2026 of October 30, 2026 is issued under section 196 of the Insolvency and Bankruptcy Code, 2016 and is addressed to all registered insolvency professionals, all recognised insolvency professional entities and all registered insolvency professional agencies.
It sits alongside the amendment regulations of the same date, which require a separate bank account for each project and compliance with the fund utilisation requirements under the real estate legislation. The circular supplies the conduct duties and the amendment supplies the financial architecture, and neither works without the other.
Step 2: Treat Compliance With the Real Estate Legislation as a Continuing Duty
The circular places a general duty on the interim resolution professional or the resolution professional to ensure compliance with the real estate legislation and the rules and regulations made under it during the process.
That is drafted as a continuing obligation rather than a one-off filing. The process does not suspend the project's registration obligations, which is the position the circular puts beyond doubt.
Step 3: Pull the Regulator's Records at Commencement
On commencement, the professional should obtain the available project information from the regulator's web portal for each project. The circular lists the registration, the sanctioned plans, the registration status, the allottee records, the regulator's bank account and the approvals.
Do this first rather than later, because the records have two uses. They feed the information memorandum, and they are a check against the claims that come in.
Step 4: Use the Regulator's Records Where the Debtor's Are Unreliable
Where the corporate debtor's records are incomplete or inconsistent, the circular permits reliance on the regulator's records, subject to verification and reconciliation.
Those two words carry the work. The permission is to use the regulator's records as a starting point, not to adopt them. A reconciliation that is documented at the time is what answers a later challenge to an admitted or rejected claim, and reconstructing it afterwards from memory is not the same thing.
Step 5: Invite the Regulator's Views on the Plans
The circular permits the professional to invite the concerned regulator to give written views on the compliance, feasibility and implementation of the resolution plans under consideration by the committee of creditors.
Where views are obtained, two things follow. They must be placed before the committee, and they must be made available to prospective resolution applicants. So this is not a private comfort letter: inviting the views commits the professional to circulating them, whatever they say.
Step 6: Put Up the Signboard Within Seven Days
Within seven days of appointment, the professional must display a prominent signboard at the main entrance of each real estate project site, or at another conspicuous location there. The period runs from appointment and not from the first committee meeting or the first claim.
This is the single hardest item to retrofit, because the seven days are gone before most of the early work is done. It belongs on the day-one checklist with the public announcement, not with the information memorandum.
Step 7: Put Up Notice Boards at Every Office
Notice boards must be displayed at the registered office, the corporate office, the site office, the sales office and any other office that is accessible. The sales office matters most in practice, because that is where a prospective buyer who knows nothing of the process is most likely to turn up.
The list is drafted by function rather than by address, so an office that performs one of those functions is caught whether or not it is described that way in the records.
Step 8: Get the Content and the Duration Right
Each board must state that the corporate debtor is undergoing the corporate insolvency resolution process, and must give the name and contact details of the interim resolution professional or resolution professional. Additional particulars may be included.
The boards must remain in place until the process concludes, and must be updated promptly if the professional changes. A board naming a predecessor directs allottees to someone who can no longer act for the corporate debtor.
Step 9: Keep the Evidence
Photograph each board in position with its date, record the date of appointment against the date of display, keep the portal extracts taken at commencement, and keep the correspondence inviting and circulating the regulator's views.
That file is what demonstrates compliance with duties that are almost entirely about visibility. A duty discharged without a record of discharge is indistinguishable from one that was missed.
Common Pitfalls to Avoid
Treating the moratorium as an answer to registration duties: The duty to ensure compliance with the real estate legislation runs through the process.
Leaving the signboard to the second week: The period is seven days from appointment.
Displaying at the project and forgetting the offices: Notice boards are required at the registered, corporate, site and sales offices and any other accessible office.
Omitting contact details: The board must carry the name and contact details of the professional, not merely the fact of the process.
Leaving a predecessor's name up: The boards are to be updated promptly on a change of professional.
Taking the boards down early: They are to remain until the process concludes.
Adopting the regulator's records without reconciliation: Reliance is permitted subject to verification and reconciliation.
Inviting the regulator's views and then sitting on them: They must go before the committee and to prospective resolution applicants.
Key Statutory Provisions
Section 196 of the Insolvency and Bankruptcy Code, 2016: Powers and functions of the Board, exercised subject to the general direction of the Central Government, and the provision under which the circular is issued.
Circular No. IBBI/CIRP/110/2026 dated October 30, 2026: Compliance with the real estate legislation during the process, obtaining and using the regulator's records, inviting the regulator's written views on resolution plans and circulating them, the signboard at each project site within seven days of appointment, notice boards at the registered, corporate, site and sales offices and any other accessible office, the required content, and display until the process concludes with prompt updating on a change of professional.
Sources and References
The circular, at the Insolvency and Bankruptcy Board of India
The Board's listing of the circular and the companion items of the same date
Insolvency and Bankruptcy Code, 2016, section 196, and Circular No. IBBI/CIRP/110/2026 dated October 30, 2026
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Readers should consult a qualified legal professional for advice specific to their circumstances.
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