Scope of RTI in CIRP: IBBI Declines Legal Clarifications on Registered Flats in Liquidation Estate

The intersection of insolvency proceedings and the right to information often creates complex administrative challenges. A recent ruling by the First Appellate Authority of the Insolvency and Bankruptcy Board of India (IBBI) provides critical insights into the boundaries of the Right to Information Act, 2005. In the landmark matter of Chandra S Vanam vs Central Public Information Officer, the appellate body clarified that the RTI mechanism cannot be utilized as a tool to extract legal interpretations, advisory opinions, or hypothetical clarifications regarding real estate assets undergoing the Corporate Insolvency Resolution Process (CIRP).

This analytical piece delves into the factual matrix, the specific queries raised by the appellant, and the statutory interpretations relied upon by the IBBI to dispose of the appeal under Section 19 of the Right to Information Act, 2005.

Background of the Dispute

The controversy originated when an applicant sought definitive answers regarding the legal status of residential properties caught in the crossfire of a builder's insolvency. Often, an assessee or a homebuyer invests their life savings into real estate, only to find the developer dragged into CIRP or liquidation. Seeking clarity on such precarious situations, the appellant filed an RTI application on 25th January 2026.

The Core Queries Raised by the Appellant

The appellant's application contained specific questions directed at the IBBI, demanding categorical confirmations regarding the treatment of fully paid properties. The primary queries included: