As of May 8, 2025, there have been no recent developments specifically linking Buy Now, Pay Later (BNPL) schemes to the Insolvency and Bankruptcy Code (IBC) in India. However, both sectors have been evolving independently, with significant developments in each.

The Indian government has been actively working to strengthen the IBC framework:

• Technology Integration: The Union Budget 2024 proposed the establishment of an integrated technology platform to enhance the efficiency and transparency of the IBC process. This initiative aims to streamline case management and improve oversight by consolidating various IT systems related to insolvency proceedings .
• Tribunal Expansion: Plans are underway to increase the number of debt recovery tribunals and establish more National Company Law Tribunals (NCLTs) to expedite the resolution of insolvency cases .
• Case Resolutions: Since the inception of the IBC, over 1,000 corporate insolvency resolution plans have been approved, resulting in creditors recovering approximately ₹3.3 lakh crore. Additionally, defaults worth ₹10.2 lakh crore have been settled at the pre-admission stage, indicating a proactive approach by companies to resolve financial distress early .

Separately, BNPL schemes have seen a resurgence in Mumbai’s real estate sector:

• Flexible Payment Plans: Developers like Lodha, Rustomjee, Raymond, Wadhwa, Runwal, and Ambit have introduced flexible payment options, allowing buyers to pay a small upfront amount (10–25%) and the remainder upon possession. These schemes aim to attract homebuyers amid softening demand and an oversupply of inventory .
• Festive Season Offers: During Ganesh Chaturthi 2024, many developers emphasized BNPL schemes over traditional discounts, aligning with the festive spirit to boost sales .

While there is no current linkage between BNPL schemes and the IBC, the evolving landscape of both sectors could lead to future intersections:

• Financial Stress in Real Estate: If developers offering BNPL schemes face financial difficulties, they might enter insolvency proceedings under the IBC. This could potentially involve creditors and stakeholders in the real estate sector.
• Regulatory Oversight: The growing popularity of BNPL schemes in real estate may attract regulatory attention, especially if defaults increase, leading to considerations of integrating such schemes within the broader insolvency framework.

For the latest updates, it’s advisable to monitor news from financial and real estate sectors, as well as official announcements from the Ministry of Corporate Affairs and the Insolvency and Bankruptcy Board of India.

Sources