Builder has gone into insolvency (NCLT) — what happens to my flat and money?
Updated 5 October 2026 · Based on the RERA Act 2016 and MahaRERA’s rules · General information, not legal advice
Short answer
Since 2018, homebuyers count as financial creditors under the Insolvency and Bankruptcy Code, so you have a say in what happens to the project. Once the builder is admitted into insolvency, file your claim with the resolution professional (homebuyers use Form CA) before the deadline in the public announcement, and vote through your class's authorised representative. A moratorium starts at admission, so most cases against the builder — including RERA proceedings — are paused while the process runs.
What changes when the builder is admitted into insolvency
- An interim resolution professional takes over running the company in place of its board.
- A moratorium begins: lawsuits and recovery actions against the builder are paused, and in most cases this includes RERA proceedings and the execution of RERA orders.
- A public announcement invites all creditors, including homebuyers, to file claims by a deadline.
What to do
- Find the public announcement (it names the resolution professional and the deadline) and file your claim in Form CA, with your agreement for sale and payment receipts.
- File early — don't wait for the deadline. Keep proof of submission.
- Homebuyers are represented on the committee of creditors through an authorised representative for their class. Read their updates and vote on resolution plans when asked.
- Stay in touch with the other buyers of your project: a resolution plan is decided by votes, and an organised group of buyers is far better placed.
Starting insolvency against a builder yourselves
Homebuyers can file to start insolvency against a builder that has defaulted, but the application must be made jointly by at least 100 buyers of the same project, or 10% of them, whichever is lower — a rule the Supreme Court upheld in 2021. It's a serious step: the moratorium also pauses your own RERA cases, so get legal advice and weigh it against a group complaint to MahaRERA.
How GharKundli helps
- Check the project’s record — a GharKundli report pulls the project’s MahaRERA filings into one place: registration status, completion dates, complaints, construction progress and the builder’s other projects.
- Act with the other buyers — join your project’s verified owners’ chat. If something serious is confirmed, we connect the owners who agreed to act together; your number is shared only with owners who also agreed.
Common questions
Will I get my flat or my money back?
It depends on the resolution plan the creditors approve — often another developer completes the project. Homebuyers, voting as a class, have a real say in which plan is chosen.
Can I keep my RERA complaint going?
Usually not while the moratorium lasts: RERA proceedings against the builder, and execution of RERA orders, are generally paused. Your claim goes to the resolution professional instead, with your RERA papers as evidence.
What if I miss the claim deadline?
Late claims may not be admitted, so file as soon as you see the announcement — and check with the resolution professional if you're close to or past the date.
Also asked as
- Builder NCLT mein chala gaya, mera flat ka kya hoga?
- Builder declared bankrupt — homebuyer rights in India
- How to file a homebuyer claim with the resolution professional
Sources
- Insolvency and Bankruptcy Board of India (IBBI)
- Supreme Court upholds the 100-buyer / 10% threshold (Manish Kumar v. Union of India, 2021) — Business Standard
- Real Estate (Regulation and Development) Act, 2016 — India Code (PDF)
This page explains the law in general terms. Every case is different — for a complaint or any legal step, speak to a lawyer experienced in RERA matters. GharKundli is not a law firm.
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