A Jurisprudential Conflict: Harmonizing the Rights of Homebuyers under the Real Estate (Regulation and Development) Act, 2016 (RERA) and the Insolvency and Bankruptcy Code (IBC), 2016

The Real Estate (Regulation and Development) Act, 2016 (RERA) and the Insolvency and Bankruptcy Code, 2016 (IBC) have transformed India’s regulatory and insolvency landscape. Both laws, though enacted in the same year, pursue distinct yet interconnected goals—RERA seeks to protect homebuyers and bring transparency to the real estate sector, while the IBC provides an efficient mechanism to resolve insolvency and bankruptcy. However, their simultaneous application has created legal friction and uncertainty, particularly when real estate developers face insolvency. Courts and policymakers have since attempted to balance the objectives of both laws through legislative amendments and judicial interpretation. Despite such efforts, homebuyers continue to face challenges in securing possession or refunds, as insolvency proceedings often override their claims. This paper examines the jurisprudential conflict between RERA and IBC, analyses legislative and judicial responses, and proposes a framework for harmonizing the rights of homebuyers within India’s evolving legal system.