President Ram Nath Kovind approves ordinance to treat home buyers as creditors

By: |
New Delhi | Updated: June 06, 2018 4:00 PM

Giving significant relief to home buyers, President Ram Nath Kovind on Wednesday gave assent to the ordinance making amendments to the Insolvency and Bankruptcy Code (IBC), which will recognise their status as financial creditors.

President Ram Nath Kovind (PTI)

Giving significant relief to home buyers, President Ram Nath Kovind on Wednesday gave assent to the ordinance making amendments to the Insolvency and Bankruptcy Code (IBC), which will recognise their status as financial creditors. Being treated as financial creditors would bring home buyers at par with banks and other institutional creditors as they would now have a share in the proceeds earned by the sale of assets of bankrupt real estate companies.

“The President today gave assent to promulgate the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018,” an official statement said.

The government said the ordinance would give home buyers due to representation in the Committee of Creditors and make them an integral part of the decision making process.

 

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1CEA expects food inflation to ease with unlock, good monsoon
2Bank of England keeps UK rates at record low of 0.1%
3States’ revenues set to cross pre-pandemic level this fiscal: Report