New Delhi, Oct. 2 -- Homebuyers in healthy real estate projects may soon be spared the fallout when their developer defaults on another project. The insolvency watchdog is set to tweak regulations to allow the committee of creditors (CoC) to recommend keeping solvent projects out of bankruptcy proceedings, even when the developer as a whole enters the Corporate Insolvency Resolution Process (CIRP), according to two people in the know.

The recommendation, however, must be backed by a 66% vote of the CoC and approved by the National Company Law Tribunal (NCLT) for it to take effect, the people told Mint.

The Insolvency and Bankruptcy Board of India (IBBI) had deliberated on the proposal at its last board meeting held late August, and the ...