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.