Mumbai and Pune have the largest concentrations of delayed housing stock in the country. There is an increase in investor and developer interest in acquiring stressed assets in Maharashtra. The industry is no longer viewing this as distressed projects, but as redevelopment and value-creation opportunities for well-capitalised developers with execution capabilities.
Rohit Gupta, managing director of Mantra Properties, says the insolvency ecosystem in real estate is evolving from being viewed purely as a recovery mechanism to becoming an avenue for asset revival.
“Large developers today are increasingly willing to participate in NCLT-led opportunities because the underlying assets are often fundamentally strong but suffer from capital or execution challenges. We believe the next few years will see faster resolutions, greater institutional participation and a meaningful reduction in stalled housing inventory across key markets,” Gupta said.
His company, Mantra Properties, has expanded into the Mumbai market and built an active NCLT-sourced pipeline with development potential of Rs 7,500 crore. Mantra’s project includes Nirmal Lifestyle Mulund, which was in the Corporate Insolvency Resolution Process (CIRP) since Jul 2023.
The plan was approved in April 2026 and involves a Rs 201 crore equity infusion to revive construction. The Siddhi Raj project in Worli was stalled for 10 years. Mantra was named the successful resolution applicant in June 2026. This has a Rs 2,000 crore development potential.
Mantra revived the long-stalled 9-acre project, Mantra Marquis, in Jogeshwari East through the NCLT route. It was backed by a Rs 340 crore investment from the ASK Property Fund. The estimated value of the project is around Rs 3,000 crore.
Alpha Corp Development acquired three stalled Earth Infrastructures projects through the NCLT resolution process: Earth TechOne and Earth Sapphire Court in Greater Noida, and Earth Copia in Gurugram, bringing relief to over 3,000 buyers. Alpha’s Resolution Plan includes an investment of Rs 750 crore, with a projected revenue potential of Rs 1,200 crore. Alpha will clear the dues over 24 months without passing the burden to buyers.
The scale of stalled real estate assets in India remains significant, and insolvency-led resolution is increasingly becoming an important mechanism for unlocking value. Real estate accounts for approximately 20% of all Corporate Insolvency Resolution Process (CIRP) admissions under the Insolvency & Bankruptcy Code (IBC).
As per ANAROCK estimates, across the top seven cities there are around 3.28 lakh stalled/delayed units with an estimated value of Rs 2.5 lakh crore in NCR, 1.50 lakh units worth Rs 1.52 lakh crore in the Mumbai Metropolitan Region, and 50,000 units in Pune valued at Rs 29,400 crore.
According to Soumitra Majumdar, Partner at JSA Advocates and Solicitors, the timelines for resolution are largely a function of the scale and condition of the projects. “While the legal and regulatory uncertainties have been largely resolved over the years, improvements in judicial capacity would certainly help in achieving faster resolutions,” Majumdar said.
He suggests that the operations of the IBC and RERA should also be clearly segregated so that inconsistent positions between the two do not add to complications. In addition, pre-pack resolution plans with the support of home buyers can significantly ease and expedite the resolution process, Majumdar said.
Moinuddin Patel, Managing Director- Pune, Cushman & Wakefield, said that the resolution and revival of stalled residential projects through insolvency-led acquisitions is a positive development for Pune’s real estate sector. It provides developers access to projects that already have land, approvals and a market presence.
“Homebuyers benefit from greater clarity on project completion and delivery, and revival of stalled projects can help boost buyer confidence, support the recovery of dormant housing stock, Patel said.