1. Home buyers get big relief as insolvency rules tweaked after Jaypee Infratech, Amrapali controversies; here is how flat buyers benefit

Home buyers get big relief as insolvency rules tweaked after Jaypee Infratech, Amrapali controversies; here is how flat buyers benefit

In order to safeguard the interest of the home buyers, the regulator will ensure that banks and other creditors do not get away with protecting their own interests at the expense of others.

By: | Published: October 10, 2017 3:31 PM
In a move to protect the interests of home buyers vis a vis real estate players, the Insolvency & Bankruptcy Board of India has amended the rules for these companies.

In a move to protect the interests of home buyers vis a vis real estate players, the Insolvency & Bankruptcy Board of India has amended the rules for these companies. This move is aimed at protecting the interests of home buyers in the wake of problems that arose linked to real estate companies like Jaypee Infratech and some of the entities of Amrapali Group. Now a company has to explicitly state how it has dealt with the interest of all stakeholders. The regulator for insolvency and bankruptcy proceedings has revised the rules in order to protect the interests of flat buyers, reported the Times of India.

As per the report, the revised rules were notified by the regulator last week. In order to safeguard the interest of the home buyers, the regulator will ensure that banks and other creditors do not get away with protecting their own interests at the expense of others.

TOI quoted a lawyer specialising in bankruptcy cases as saying, “The change in the rules has plugged a gap as flat buyers are of the view that there is nothing to protect their interests.”

Meanwhile, the government and IBBI have been trying to come up with solutions to ensure that the interests of home buyers against builders are fully protected amid the spate of insolvency proceedings. The final resolution plan will, however, be decided by the National Company Law Tribunal based on bids that are received, reported TOI.

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    Aman Behl
    Oct 10, 2017 at 3:59 pm
    It is incorrect to say that this move is going to help the home buyers. Compelling committee of creditors to write down their decision regarding home buyers interests in a resolution plan, even if that decision be against home buyers interests means absolutely nothing. Directly, this will neither result in a single square millimeter of the home being handed over for possession to existing home buyers nor result in one paisa of delay compensation being paid to existing home buyers.
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