The National Company Law Appellate Tribunal (NCLAT) has confirmed that insolvency proceedings initiated by homebuyers against realty firms must be limited to the specific project where defaults occurred. This ruling emphasizes that extending insolvency to unrelated projects would not benefit homebuyers or stakeholders involved in those projects. The NCLAT stated, 'The law is well settled that when financial creditors, homebuyers who belong to one project and who file a Section 7 application on account of default committed by the corporate debtor with respect to the project, the Corporate Insolvency Resolution Process (CIRP) has to confine to the said projects.' In a recent case involving Raheja Developers, the NCLAT confined the ongoing CIRP to the 'Krishna Housing Scheme' and directed that claims from creditors and stakeholders should also be limited to this project. The Krishna Housing Scheme, developed under the Affordable Housing framework, comprises 11 towers with a total of 1,644 residential units and was impacted by construction delays due to the COVID-19 pandemic, leading to increased costs from ₹183.36 crore to ₹204 crore.